As an old banker myself, I’ve looked at Bitcoin’s financial implications for years and see endless potential. Could it all be the 21st century’s version of the “Tulip Mania” from the 17th century? This desperate dig by Bitcoin antagonists is still a slim possibility, but that feeble argument is starting to fade like the flower itself. Bitcoin is showing it’s influenced by law enforcement, e-commerce, Wall Street investment, technological advancement and much more.
And venture capital, from major players, is running into the hundreds of millions on a monthly basis. It is slowly starting to dawn on the movers and shakers that Bitcoin is not going anywhere, and its only a matter of time before it influences your industry directly. And market leaders the world over are speaking out on what digital currency means to the world in our increasingly digital future.
Bitcoin will have the most trouble entering an arena where fiat currency rules with an iron hand, like banking, since digital currency and fiat currency have a matter/anti-matter relationship. That doesn’t mean leading bankers can ignore it as irrelevant or non-influential. A major part of banking is capital investment in commodities, and few have the growth potential of Bitcoin. Bankers love money, and who says the money they desire has only to be fiat?
Oswald Gruebel knows a thing or two about banking, money, and future investments. He was head of Credit Suisse for four years before taking over at USB AG in 2009, before resigning in 2011. In an interview with Cash.ch, he had this to say about what he sees as wise long-term investment in the future:
So no investment tip for the next 30 to 40 years?
“The only investment that has been proven holds its value over a longer period, gold, and in the future (Bitcoins). Gold and Bitcoins production is limited. Not so with money. Central banks can print unlimited money and tell us today also very clear. It is for this reason not recoverable.”
What should you consider when wealth building?
“You should not rely on The State itself. Maybe he paid you in the future is not what you imagine today. Everyone should take the initiative. When you create, you must find something that is limited and not increased arbitrarily.”
Making a clear parallel between the value of Gold appreciating and Bitcoins is significant. And also illuminating fiat, bank-made money through Fractional Reserve Banking as an opposing investment position is something I have been vocal on as well. It is clear to anyone with an economic background that “The State” will only feed you one thing in the long-term: debt. Creating fiat through “Quantitative Easing”, Fraction Reserve Banking, and other measures only hurt the common consumer, and protects the elite at the top of the financial food chain. Inflation, unemployment, and increased state debt and taxation are all rising dramatically. Debt-based investments cannot effectively hedge against this level of inflation, which is where Bitcoin comes in.
Supply is limited and fixed, production will be halved twice in the next five years, and demand and publicity are on the rise. It doesn’t take a former-CEO to understand that now is the time to buy into Bitcoin, if not for use as a currency now, for the appreciation designed into it in the future.
It’s good to hear another voice from the fiat world admit that Bitcoin is on a righteous path, but it is not a coincidence that he is currently out of the banking business. It’s hard to pat the opposing team on the back in the middle of the game.
What is your Bitcoin investment strategy? With the economic issues banks are having worldwide, how much do you trust banks and traditional investments? Share above and comment below.
Last modified (UTC): February 7, 2015 16:02