Max Keiser , the host of the financial program Keiser Report and one of the first Bitcoin investors, made a shocking claim. According to Keizer, since gold cannot be sold due to the coronavirus outbreak, people will receive Bitcoin in flocks.
In the episode published on March 31 of the Keiser Report , the presenter stated that billionaires would run under safe as shelter because of the coronavirus pandemic.
Keiser: People Will Flock to Bitcoin
Keiser says that when people start stocking and leave nothing, only the Bitcoin option will be left, he summarizes:
“I guess it will be caused by an ironic situation, not from the use case; When people realize that they can’t buy gold, they will run to Bitcoin in swarms. ”
Under this estimate of Keiser is Bloomberg analyst’s warning on March 25th. According to analysts, the gold industry may experience a high increase in demand, resulting in an unexpected confusion.
Precious metal saw a marked price volatility in 2020. While it was at $ 1,469 just two weeks ago, markets have soared to $ 1,629, up 10.9% in just one week.
What Coronavirus Brings: Will Gold Be the New ‘Toilet Paper’?
Gold has some disadvantages against Bitcoin. First of all , unlike the cryptocurrency , it is expensive and risky to go beyond the border; a reliable third party is usually required for storage. Again, unlike Bitcoin, there is no way for the market to know if a particular gold unit exists in real time.
Gold is also influenced by the phenomenon that affects every coin in history except Bitcoin. According to this phenomenon, the higher the price, the more effort humanity is making to increase supply. As Saifedean Ammous has stated in his book, “The Bitcoin Standard “, Bitcoin cannot increase its supply even if its price rises significantly.
In the program called Keiser Report , he added that, in contrast to the 2008 financial crisis, the gold mines were closed during the coronavirus period and ironically missed the opportunity to increase supply.
“We can face a serious crisis in the gold markets, as in toilet papers,” said Stacey Herbest.
Finally, let’s conclude with Keiser’s words:
“Remember: billionaires look at gold and silver as the poor look at toilet paper.”