There are many opinions that we hear about what will happen to the world as we know it after this pandemic. Economists, politicians, doctors, all committed to trying to give a hint of what tomorrow will be like. In this opportunity we comment on some visions of a well-known Bitcoin whale about, predicting an economic shock.
J0E007 is a prominent Bitcoin whale, specifically on Bitfinex. In his Twitter account, the Bitcoin whale made it clear that he considers that the situation in the world is currently serious, but that it can become worse, with an economic shock never seen before. To understand a little more about this Bitcoin whale, we must note that he considers himself an investor and self-proclaimed “economic historian”.
Whale Bitcoin warns investors to prepare for the economic shock
The Bitcoin whale known as J0E007 also notes that the impending crisis is likely to unfold in waves, each with its own set of problems and approaches. He even cataloged it as “the biggest economic shock of our generation”
Then, he added that “the focus of the crisis will move through different areas. Attempts to alleviate and resolve a crisis will lead to more disorder“
In previous tweets, this Bitcoin whale had highlighted that the economic reality we all lived in before 2020 has ended. Instead, we will live with a new and arduous reality that will probably last another 20 years according to J0E007.
What could this mean for Bitcoin?
As the crisis worsens, it is estimated that the United States Federal Reserve will turn interest rates to negative levels. Raoul Pal, a prominent investor, spoke about this in a recent thread of tweets. There, he pointed out that he sees that the FED reaches -2% while the 10-year bond rates also turn negative.
He reflects that this will put the world’s focus on three main assets: the US Dollar, Gold and Bitcoin. The argument is that people will eventually drift away from the Dollar as its value weakens, eventually focusing entirely on BTC and the precious metal.
Therefore, it could turn bullish for BTC in the medium and long term. Pal estimates the onset of that reality within 18 to 36 months. In addition, it can be seen that these professionals coincide with the Bitcoin whale.
As global chaos increases, the need for so-called “strong or stable currency” has never been greater, and although demand for it has been delayed, it is likely to grow in the years (and even decades) to come.
Will it be Bitcoin or will it be Gold? Will the dollar as a global reserve asset weaken completely? These are questions that have been discussed in various contexts, and were even addressed by Anthony Pompliano and Peter Schiff recently. You can find the details here.