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Block.one CEO Brendan Blumer: 'Fiat Sacrificial Lamb, Gold (XAU) On the Wrong Side of Time'

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Wed, 05/13/2020 - 12:33
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Vladislav Sopov
Brendan Blumer, the CEO and co-founder of the Block.one development team behind EOS.IO software, shares some macroeconomic takes on the current tough times
Block.one CEO Brendan Blumer: 'Fiat Sacrificial Lamb, Gold (XAU) On the Wrong Side of Time'
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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.

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.

Related
Crypto Offers Bigger Opportunity to Current Generation Than Conventional Assets

Also, the crypto sector creates hope since it is popular among the youth for the level of financial freedom and inclusion it provides.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)