Economic Shift To Bitcoin – Worst Insolvency Event In History Is Coming
Amidst the global economic crisis, people are looking for safe havens and Bitcoin, and crypto have been gaining increased interest these days.
More and more investors are migrating to the crypto industry, seeing a flight to safety in the digital assets.
The crypto market is pretty red today, and Bitcoin is also trading in the red at the moment of writing this article.
The most important coin in the crypto space is currently priced at $7,294.28.
A massive financial collapse is reportedly on its way
Raoul Pal who is a former Europe hedge fund sales lead at Goldman Sachs, is preparing for a massive financial collapse.
During a recent podcast, Pal predicted a 20% fall in equities in the short term before a three or four-month bounce.
In the long run, Pal said that there would probably be a lot of companies that will die as the COVID-19 continues to cripple more sectors of the economy.
“I think the balance of probabilities are that this is a much longer event in terms of the economic impacts… And I think it’s going to be the largest insolvency event in all history,” Pal said.
It’s also worth noting that he believes that the incoming crisis will be so terrible that it will permanently change the psyche of the next generation, how the online publication the Daily Hodl puts it.
A generational change is near
“This is a generational change… What it does is the younger generation will look upon everything differently forever,” he said.
He continued and explained that the young people would look with suspicion to the pension system, which will fail during this whole crisis.
He also made sure to highlight that young people will be looking across securities markets and think that this is not for them.
“They will have different opinions on risk and savings than previous generations,” he concluded.
According to the online publication mentioned above, Pal revealed that he’s about to shift an important part of his wealth to Bitcoin:
“Of the liquid net cash that I have available… my allocation that I want to be in for the next 12 months probably, maybe longer, is 25% Bitcoin, 25% gold, 25% cash, and 25% trading opportunity.”
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Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.