War And Emerging Monetary Order To Boost Bitcoin

It’s been just reported that there are some important factors right now that can boost the price of Bitcoin despite the massive volatility in the crypto space.

As the online publication the Daily Hodl notes, Credit Suisse investment strategist says Bitcoin (BTC) will likely benefit from the current geopolitical turmoil.

In a new analysis, Zoltan Pozsar explains the fact that the world is witnessing a shift to a new monetary order centered around commodity-based currencies in the East.

The strategist also makes sure to highlight the fact that the new monetary order will weaken the Euro/USD system and cause inflation in the West.

“A crisis is unfolding. A crisis of commodities. Commodities are collateral, and collateral is money, and this crisis is about the rising allure of outside money over inside money.”

Pozsar also said that  Russian commodities are similar to subprime collateralized debt obligations in 2008. He explained recently that the People’s Bank of China (PBoC) is the only bank that can provide a backstop for the crisis.

As the same online publication mentioned above notes, he also said that the PBoC has only two “geo-financial” options: print money or sell bonds to buy Russian commodities.

He explained that both options would cause more inflation in the West. He said that no matter how things unfold, Bitcoin’s price will see a surge.

“This crisis is not like anything we have seen since President Nixon took the US dollar off gold in 1971 – the end of the era of commodity-based money.”

He continued and said this:

“When this crisis (and war) is over, the US dollar should be much weaker and, on the flip side, the renminbi much stronger, backed by a basket of commodities.”

At the moment of writing this article, BTC is trading in the red and the king coin is priced at $39,056.