People Will Use Crypto For This Reason, Former Banker Explains
The mainstream adoption of digital assets has been one of the biggest goals that the crypto industry has.
There have been a lot of movements made in this direction, and they continue.
The co-founder of online investment platform BnkToTheFuture.com Simon Dixon had a talk with Bitcoin podcaster Lark Davies, aka The Crypto Lark.
He addressed his thesis on an incoming economic collapse in the 2020s when Bitcoin was just emerging.
Back in 2009, he was also an early BTC investor, and he presented his ideas about monetary policy and mounting debt cycles in a video that got on YouTube.
He predicted a black swan event
He predicted how quantitative easing and high levels of indebtedness would increase until a black swan event triggers a collapse of the system.
He did not foresee the disruptive reality in which we’re living at the moment due to the coronavirus pandemic that triggered mass unemployment and more and he said that the global financial system “thrives on a Ponzi-style setup that is ripe for the unraveling because people never repay the debt,” as the Daily Hodl said.
He believes that all of this will eventually force governments and central bankers to embrace a losing strategy of trying to print their way out of the economic crisis.
On the other hand, it’s important to note the fact that quantitative easing becomes useless as taxes cannot cover the interest on the debt.
That leads to the last resort.
“You’ve got one tool left, which is not using the central bank to create money as debt, but just using the government to create [non-debt-based] money…” he said.
He continued and explained, “The problem with that is that money is inflationary. What we need is to find a way of injecting a new money supply – that’s not backed by debt – into the economy, that is also non-inflationary.”
Check out the video in order to learn more details.
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.