Entrepreneur and investor Brendan Blumer is well-known for his profound snapshots of the blockchain industry and economics as a whole. Today he announced how pessimistic he is on the majority of traditional assets in the ongoing recession.
Simple but sorrowful take
According to Mr. Blumer, fiat money is on borrowed time. Fiat is destined to become a ‘sacrificial lamb’ for a major economic shift.
Cash/USD is on the brink of negative rates and amidst unprecedented printing. Fiat as a store of value will be the sacrificial lamb used to slow the realisation of the greatest economic halt in history. @RaoulGMI https://t.co/OSmneLeb0z— Brendan Blumer (@BrendanBlumer) May 13, 2020
The situation in the stock market isn’t much better. Traders are now seeking ‘least-bad’ assets more than investment opportunities. Fundamentals are being ignored with the worst risk-reward we have ever seen.
Due to technological processes, the lifespan of the average company has declined rapidly.
Just like the U.S., the emerging markets
can’t print their way out of this
Crypto: role and place
Gold (XAU) and other commodities are marginally better. They function fractionally, but, nevertheless are on the wrong side of time.
Some commodities look interesting to Mr. Blumer but demonstrate a high correlation with supply/demand fluctuations in specific industries.
The cryptocurrency sector isn’t supported by the economic institutions of the traditional system. It has its own advantages: exponential awareness and technological integration.
Also, the crypto sector creates hope since it is popular among the youth for the level of financial freedom and inclusion it provides.