Earlier in September, some of the world’s most prominent Bitcoin (BTC) investors, builders, executives, and thinkers descended on Riga, Latvia to attend the Baltic Honeybadger 2019 conference. A religious experience for some, Honeybadger 2019 saw key individuals in the cryptocurrency space take to a stage to discuss the direction of this industry, the future of Bitcoin, among other ideas.
One notable presentation was one by Murad Mahmudov, a convert to the Bitcoin movement that abandoned Goldman Sachs to start his own fund — Adaptive Capital. In a 25-minute conversation, Mahmudov took some time to break down over 50 reasons why the Bitcoin price and the adoption of the cryptocurrency are poised to explode with ample time.
Here’s Ethereum World News to break down a small portion of the 50-odd reasons, which he called “positive catalysts”, that were conveyed.
Bitcoin to Succeed; Here’s Why
- Trust in banks and traditional institutions is falling: Over the past decade, trust in traditional institutions has fallen off a cliff. Presumably due to the rise of political polarization and 2008’s Great Recession, the public has begun to trust mainstream media outlets and banks less and less. This underlying distrust and turmoil sets the stage for the implementation of a new trustless system, such as Bitcoin.
- Global debt is swelling: While many hoped that the fiat system would be fixed in the aftermath of the Great Recession, it hasn’t. Consumers, corporations, and governments have only continued to take on more and more debt, with the global debt-to-GDP ratio nearly hitting 320%. The leverage needed to maintain this system is believed by many to be dramatically unsustainable, necessitating a “Plan B”, if you will, like Bitcoin or gold.
- Negative yielding debt at all-time highs: Coupled with rapidly swelling global debt levels, the amount of negative-yielding debt on Earth has reached $15 trillion. That means that hundreds of thousands, if not millions of investors across the globe are losing money on their investments in debt. Unlike negative-yielding bonds, Bitcoin offers no yield, and may thus prove to be tantalizing to investors that start waking up to the state of the world economy.
- Macro investors turning to Bitcoin: Macro hedge fund managers and investors have begun to turn to Bitcoin, only accentuating its potential. For instance, former Goldman Sachs executive Raoul Pal has begun to pivot to Bitcoin, calling it an option on the future of finance, the best asset for Millenials at the moment, and something that is currently dramatically undervalued from a long-term perspective.
Photo by Kent Pilcher on Unsplash