Appearing as a guest on Anthony Pompliano’s podcast, Jordi Visser, founder of Visser Labs, offered a striking projection of the global economy and cryptocurrency markets.
According to Visser, the risk of contagion similar to the 2008 financial crisis is looming in the financial world, and this could create a “supercycle” that serves Bitcoin’s original purpose.
Visser stated that the private credit market, worth approximately $4 trillion, carries a greater systemic risk than commonly believed. Arguing that restrictions on traditional banking (such as Dodd-Frank) have caused debt to shift to “off-balance sheet” areas and opaque private markets, Visser said:
“We are in a K-type economy where lower income groups are struggling. We will see who is who when liquidity starts to be drawn from the private credit market. Financial stocks have already fallen below their 200-day moving averages; this is usually the beginning of bad things.”
Visser compared the current situation to the 1998 Russian crisis and the 2008 Great Financial Crisis. He noted that rising oil prices and inflationary pressures are putting central banks in a tight spot, and pointed out that historically, Bitcoin’s biggest surges have occurred immediately following financial shocks.
According to Visser, investors will turn to Bitcoin as they shy away from “illiquid” and “non-transparent” assets like private loans and real estate. While the “doors closing” in the private loan market traps investors, Bitcoin offers 24/7 liquidity and complete transparency through the blockchain.
Visser predicts that in the event of a breakdown in the financial system, central banks will be forced to establish liquidity facilities, and argues that this monetary expansion will be “fuel” for Bitcoin.
With artificial intelligence disrupting traditional software companies, he argues that Bitcoin will become the most reliable “growth asset” in the world.
*This is not investment advice.