Banking System’s Failure Will Bring Rise In Bitcoin

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Simon Dixon, CEO and co-founder of the cryptocurrency investment platform BnkToTheFuture, evaluated what will happen to Bitcoin (BTC) after the incentive packages and benefits are finally over.

In an interview with Daniela Cambone, Dixon says private banks could inadvertently collapse the real estate market and create a deflationary mess that ruins banks. Dixon uses the following expressions:

“In the end, I believe real estate markets are the first place that comes to mind when the true nature of people’s individual balance sheets becomes apparent when stimulus packages stop. The real estate market is the mechanism by which private banks create digital currencies every time they issue a loan. So if banks haven’t sold enough of these toxic assets to your pension, as they did before the last financial crisis, then it exposes the banks’ balance sheets as to what they are, and banks will definitely not survive it.

Dixon believes that unlike the 2008 financial crisis, governments cannot intervene to prevent banks from collapsing, which will require a new currency. Dixon says, “In a situation like this, you need a new form of money to be injected into the economy, and a really simple way to do this is only with the central bank. The central bank must create an application and if bank x goes bankrupt then any money you own should be replaced by this new central bank digital currency ”.

Dixon believes people do not need to worry about their funds freezing in these new central banking practices, but should worry about their privacy and personal freedom if these new forms of money emerge.

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