Bitcoin surge: Traditional currency economies facing ‘cardiac arrest’, claims expert | City & Business | Finance

Max Keiser told Express.co.uk the pound sterling was “dying” as cryptocurrencies soared. He claimed central banks across Europe would soon have to “declare defeat” to bitcoin and other cryptocurrencies. He claimed: “The pound, like all fiat, is dying as trillions worth of fiat money starts moving from pounds, dollars, euros, and yen into bitcoin as a way to preserve wealth now that central banks have declared defeat and money will be printed globally as we saw in Weimar Germany.” Mr Keiser added: “People are beginning to figure out that banks are the problem and bitcoin is the solution.

The presenter of Russia Today’s The Keiser Report said, since the 1980s, the UK’s economy has used financialisation to expand GDP instead of manufacturing.

He warned this has now “run its course” and the stimulus schemes of the Bank of England were now “hurting more than helping”.

The broadcaster and bitcoin pioneer said the UK was floundering without any meaningful manufacturing sector to fall back on.

Now the prognosis for the value of the pound looks precarious when the combined complications of Brexit and the coronavirus outbreak are added to the mix.

Mr Keiser explained how the recent 11 percent quarterly drop in UK GDP announced by the Chancellor might start looking good “compared to what’s coming”.

Mr Keiser said the UK had indulged in “monetary expansion for decades now and they’ve painted themselves into a corner so that if they suddenly stop the exponential money printing, the entire economy would go into cardiac arrest”.

Mr Keiser suggested one of “the big risks is that global markets completely lose faith in the pound because of all this money printing and inflation in the UK skyrockets”.

This process of infinite printing of fiat currency shows no sign of slowing in the US.

READ MORE: Bitcoin price could rocket to ‘$1,000,000’ as big institutions buy directly from miners

Investor appetite for risk is increasing after the Federal Reserve agreed on more stimulus packages.

This lead to the dollar falling last week to its lowest in more than 2-1/2 years.

Federal Reserve is predicted to enact more stimulus measures throughout the winter because of the effects of coronavirus.

Speaking to CNBC, John Doyle, vice president of dealing and trading at Tempus, Inc. in Washington said: “Risk overall was on today anyway, and overall that has been the story in November and continuing in December.

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