Last week, UK based Fin-Tech company Revolut announced it is making cryptocurrency available to all its 7 Mio. customers. Revolut referred to crypto’s origins as an alternative to real money during the times of quantitative easing and currency devaluation following the 2008 financial crisis.
The European Central Bank has pledged €750B worth of bond-buying with the potential for this figure to increase should it be required. The US Federal Reserve and the Bank of England meanwhile have stated their intention to buy an unlimited amount of debt to finance Coronavirus-related government interventions. The inflationary threat will be a concern to consumers with savings and investments likely to be devalued. Revolut had already shown its intentions in this area with the recent announcement of its plans to allow customers to purchase gold.
Certainly, there is reason to be bullish on Bitcoin if it goes mainstream and if the public sees it as a hedge against inflation. Just like gold, Bitcoin is also a form of “outside money”, a type of asset that is the liability of nobody and cannot be manipulated by anyone.
Sven Franssen