Gold & bitcoin to replace fiat money as consumers lose faith in ‘social contract’ – Keiser Report
“We’ve landed at the point where we’re pretty much at the end of the road in terms of yields and interest rates. And central bankers now have the urge to reflate the system in a new kind of way. We are at the verge of this new paradigm where this reflation will hit the gear,” Mark Valek, the author of the annual ‘In Gold We Trust’ report, told Max Keiser on the latest episode of the Keiser Report.
He claims that the new model may well be based on either gold or bitcoin and notes that the two are in fact not too far apart in terms of value.
“People are starting to question the system of fiat money. […] It’s wrong to neglect the technological progress which is going on with the crypto currencies.
Of course, gold is a physical metal while bitcoin is a man-made system but in terms of hard money bitcoin is an even harder money than gold in the medium term,” Valek claims.
The economist also believes that the popularity of cryptocurrencies is due to the growing mistrust of the financial system by the young generation.
“Another indication is the crypto phenomena which is embraced by the younger generation. They think perhaps if really this whole fiat system collapses when I’m at pension age I may be able to save myself from the economic point of view if I have a few bitcoins. That’s also a part of mistrust in the social contract,” Valek suggests.
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