(Kitco News) – Over the past 300 years, most of the world’s major fiat currencies have depreciated significantly or even lost their value entirely, and investors shouldn’t bet against this trend, said Max Keiser, host of The Keizer Report and co-host of The Orange Pill Podcast.
“I think over the next 10 years, as you see these big economies like the United States and China, which are carrying debt at 300% of GDP, and they’re just going to print their way out of that, we’re talking about a fiat currency apocalypse,” Keizer told Kitco News editor Michelle Makori.
Keizer’s solution to hedge against an inevitable depreciation of the dollar is to buy Bitcoin.
“I prefer to be careful and load as much bitcoin as possible now and not try to play games on the timing side. What I now know for sure is that these fiat [currencies are] will go to zero. The reason for this is that Bitcoin is already in the tens of thousands of dollars per coin, it’s because all the major fiat currencies in the world are in a hyper-inflationary meltdown against Bitcoin,” he said. .
Keizer’s comments come as Bitcoin has fallen 20% over the past week, after falling 31% year-to-date.
Meanwhile, the US Dollar Index (DXY) has been relatively flat year-to-date.
Although Bitcoin had the worst start to the year since its inception, Keizer is still fundamentally bullish in the long term and said that against the US Dollar, Bitcoin’s price will rise “infinitely” over time.
Part of the story behind Bitcoin’s rise over fiat currencies is its wide spread that the world will see in the coming decades, and in fact, is already seeing now, Keizer noted.
In El Salvador, where Keizer is currently based, a large portion of the population that previously did not have bank accounts now own Bitcoin wallets and use it in daily transactions.
“The number of people who have Bitcoin wallets now exceeds the number of people who have bank accounts in total,” he said. “It’s the process of banking the unbanked, and that’s part of the magic of bitcoin.”
Chivo Wallet, the official bitcoin wallet of El Salvador, managed to onboard 4 million users in 45 days. The government offered a $30 sign-up bonus, similar to an ‘air-drop’, to all users who created a wallet.
El Salvador made headlines last year when it became the first country in the world to make Bitcoin legal tender.
Keizer said other countries will soon join the ranks in adopting Bitcoin as legal tender.
“I’ve been saying for six or seven years now that we could see a country make bitcoin legal tender and that would start a global hash war, or hash race, with countries competing to adopt bitcoin and hoard bitcoin,” did he declare. noted.
Keizer said the next country to follow El Salvador’s lead will most likely be in Latin America.
El Salvador is also building the world’s first “Bitcoin City”, a special trading zone with its own trade and tax laws. Built at the foot of a volcano, Bitcoin City will also set up the infrastructure to mine Bitcoins, harnessing geothermal energy from the volcano.
The Central American country is issuing $1 billion in Bitcoin-backed bonds, half of which will be used to build Bitcoin City, hence the nickname “Volcano Bond”, while the other half will be used to buy more Bitcoin.
The bond is a 10-year maturity, with a 6.5% coupon that is already oversubscribed ahead of its market launch next month, Keizer said.
For more on volcanic bonds and current economic conditions in El Salvador, watch the video above.
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