Speculations Are Rife About Bitcoin’s Epic Comeback Amidst Financial Crisis

Peter Schiff understands the significance of legal and regulatory compliance for any banking institution given his bank was shut down for the same reason.

The current failure and the subsequent federal interference have led to renewed debates on the most effective strategies to protect struggling economies.

Amongst these debates, one of the most effective strategies suggested by investors is to shift to Bitcoin and other like tokens.

Striking the Right Balance

The American stockbroker who happens to be the Chief Executive Officer (CEO) of Euro Pacific Capital Inc had to face the consequences of non-compliance.

It is essential to strike a balance between regulations and financial institutions otherwise it causes many problems. For the same reason, regulatory authorities closed the Euro Pacific Capital Inc in Puerto Rico.

Since having personally experienced regulatory challenges, Schiff is conscious of the restrictions such regulations would bring to the banking sector.

The 2008 Financial Crash

The renowned economist, Schiff drew comparisons between the current financial turmoil and the 2008 financial crisis. Peter Schiff believes that the imposition of stricter banking regulations is exacerbating the economic downturn.

It was not the banking system failure but the failure of the housing market that led to the financial crisis in 2008.

However, according to Schiff at that time it was the considerable government regulation that caused the failure.

In fact, he notes in his tweet that the government had assured back then that the strict banking regulations of 2008 wouldn’t be repeated.

Following the 2008 financial crisis, the government introduced numerous banking regulations to prevent the recurrence of the events that took place.

However, the current situation indicates that these measures have failed to deliver on their promise. In fact, an excessive amount of government regulation was one of the reasons why the 2008 financial crisis occurred.

This is thus indicative of the fact the current crisis is expected to be more severe.

Bitcoin Takes Charge

While Schiff comments on the strict government regulations, there are Twitter users vouching for Bitcoin and other crypto tokens.

There are people who are ready to move millions of dollars to the US dollar crypto token, USDC. Amidst debates about the current banking crisis, Crypto enthusiasts shift the focus to Bitcoin which has been gaining ground.

Bitcoin has been steadily rising as more investors shift to the asset, given the loss of confidence in the banking systems.

In pursuit of financial freedom, investors worldwide adopt Bitcoin and also encourage others to shift to the same.

They have started comparing Bitcoin to gold and reassuring one another that it’s one of the finest assets to invest in.

Crypto entrepreneurs are showing immense faith in Bitcoin’s remarkable resurgence.

The previous chief technology officer of Coinbase, Balaji Srinivasan has even forecasted that Bitcoin’s worth would soar to $1 million within three months.

According to an article James Medlock and Srinivasan, who are pseudonymous Twitter users, made a bet based on their divergent opinions regarding the US economy.

They gave their opinions amidst the continuous ambiguity concerning the country’s banking system.

Srinivasan has wagered that an impending crisis will cause the deflation of the US dollar, propelling the Bitcoin price to $1 million.

The collapse of the Banking System

Amongst the US banks that have recently collapsed the most prominent are Silvergate Bank, Silicon Valley Banks, and Signature Bank.

An extensive evaluation of Silicon Valley Bank was carried out by a group of economists recently and some interesting facts came to the surface.

The statistics revealed that almost 190 US banks are vulnerable to a collapse prompted by depositors.

It was emphasized that the financial policies formulated by central banks could negatively impact long-term assets, causing great losses to the banks.

These assets could vary from government bonds to mortgages, and all these could be adversely affected.

Given the fed policies and this banking collapse, it is only fair that people put their confidence in something that seems more stable.

The crypto market looks stable at least for now as compared to the conventional banking system.

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