Bitcoin to be the Banks' Bail out Says Max Keiser

The idea of a bank bail out unfortunately not too uncommon. The manner in which the global financial system is set up means that there are often cases where banks can get themselves into a place where they go bankrupt and need bailing out. 

The last time this was seen was only 11 short years ago in the 2008 financial crisis which left many Wall Street banks stranded, looking for a bail out for the government. The issue is, this is not a sustainable practice as even the most advanced nations and governments are operating in near continuous debt. 

This has led Bitcoin? maximalist, Max Keiser, to suggest that the next big bailout for banks will see the Wall Street giants coming to the Bitcoin? community in order to obtain a bailout. Bitcoin? remains one of the only valuable assets that operates independently from the global market and thus is not often affected by geopolitical tensions and financial uncertainty. 

In fact, recent tensions which have sparked thoughts of another financial crash have shown that people like to see Bitcoin? as a global hedge already, before things have even started collapsing. Thus, if the global financial sector does fall again, it is likely that Bitcoin? will skyrocket, and it may just be the only way for the banks to save themselves. 

Escape money

Keiser, in his interview with Trade U, discussed the depreciating value of fiat and Bitcoin?’s position to fill the void. Hinting at ongoing interest cuts and related market manipulations, Keiser said: 

“If you want to escape money, you only have two choices: One is gold, the other being Bitcoin?.”

However, the issue with gold is that large reserves of it are held by governments in any case and because of that, there is likely a huge price manipulation involved in its value too.It is this form of centralized control that makes Bitcoin? so appealing, and also why it can operate without interference. 

“Those banks like CitiGroup, JP Morgan, Goldman Sachs, BNP or HSBC will come to the Bitcoin? community for a bail out. The Bitcoin? community will consider it, but of course it would be done on our terms,” Keiser warned.

The new safe haven?

Because, with the recent global tensions, Bitcoin? has been on the up and people have been suggesting it could be operating as a form of safe haven. It is still a little early to call this a true fact, as even in the last few days, the price of Bitcoin? has fallen again to where it was before the political uncertainty peaked. 

However, what cannot be denied is that Bitcoin? is a scarce resource, and that it is anyti-inflationary. The mining? difficulty is set to soon cut which will make new Bitcoins even more which, through general macro-economics, should drive up the price of the coin? substantially.