Max Keiser told Express.co.uk the pound sterling was “dying” as cryptocurrencies soared. He claimed central banks across Europe would soon have to “declare defeat” to bitcoin and other cryptocurrencies. He claimed: “The pound, like all fiat, is dying as trillions worth of fiat money starts moving from pounds, dollars, euros, and yen into bitcoin as a way to preserve wealth now that central banks have declared defeat and money will be printed globally as we saw in Weimar Germany.” Mr Keiser added: “People are beginning to figure out that banks are the problem and bitcoin is the solution.
The presenter of Russia Today’s The Keiser Report said, since the 1980s, the UK’s economy has used financialisation to expand GDP instead of manufacturing.
He warned this has now “run its course” and the stimulus schemes of the Bank of England were now “hurting more than helping”.
The broadcaster and bitcoin pioneer said the UK was floundering without any meaningful manufacturing sector to fall back on.
Now the prognosis for the value of the pound looks precarious when the combined complications of Brexit and the coronavirus outbreak are added to the mix.
Mr Keiser explained how the recent 11 percent quarterly drop in UK GDP announced by the Chancellor might start looking good “compared to what’s coming”.
Mr Keiser said the UK had indulged in “monetary expansion for decades now and they’ve painted themselves into a corner so that if they suddenly stop the exponential money printing, the entire economy would go into cardiac arrest”.
Mr Keiser suggested one of “the big risks is that global markets completely lose faith in the pound because of all this money printing and inflation in the UK skyrockets”.
This process of infinite printing of fiat currency shows no sign of slowing in the US.
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“Traders are looking for any reason to bid risk up and that comes at the cost of the dollar.
“When you get a report that a bipartisan stimulus deal can get done after hopes have been dashed, it’s just another reason to bid risk up and sell the dollar.”
There are growing signs the influential investors are moving their wealth into bitcoin.
Hedge fund manager Paul Tudor Jones has highlighted that the digital currency is undervalued.
He said that just a $500 billion (£372 billion) market cap is too low for bitcoin.
A $500 billion (£372 billion) market cap puts the bitcoin value at over $27,000 (£20,009).
Paul Tudor Jones expects bitcoin to exceed $27,000 (£20,009).