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Max Keiser on Bitcoins

Bullish on Bitcoins

Written by Brian Hicks
Posted April 4, 2013

Bitcoins have been enjoying a great deal of press as of late, and for good reason. After all, they're one of the most interesting takes on modern currency that the world has ever seen, and they're gaining a great deal of interest from investors the world over.

Now, Max Keiser—host of RT’s “Keiser Report”—is weighing in on the trend.

Keiser has given his endorsement of Bitcoin (as well as gold and silver) as a safe bet for investors who are looking to hedge against inflation, government regulation, and the printing of physical money.

Keiser has a strong reputation as an extremely successful stockbroker, and he holds a great deal of influence over investors and analysts who pay close attention to his thoughts on economic values.

One of the major reasons behind Keiser’s endorsement of the Bitcoin and other alternatives to paper money comes as a result of the recent financial crisis in Cyprus. With Cyprus banks forced to close for a period of time prior to the island’s large-scale financial bailout, worries throughout the world over whether or not the euro (and standard currency in general) will once again be in jeopardy are rising steadily.

bitcoinsBitcoin is an entirely new concept on how currency operates. Debuted in 2009, the currency was intended to be a response to a global financial crisis that many thought would extend far longer than has been seen in recent months and years.

Of course, while the U.S. economy has seen improvement, there’s no reason to assume that future downturns could not occur, which is one reason why Bitcoin is becoming increasingly popular amongst investors. Since the currency does not operate under government sanctions and regulations, it is—in many ways—“recession proof.”

It wouldn’t be hard to throw Bitcoin into the “trend” category, but recent numbers have shown that the currency isn’t looking to slow down anytime soon. According to RT, Bitcoin has risen above $1 billion in value this week.

While this is perhaps a small number in comparison to the net value of all world currencies combined, Bitcoin’s worth has quite a bit more meaning than many might notice up front. Breaking the $1 billion mark means that Bitcoin is already worth more than many sovereign currencies, which is astounding considering how new it is.

In many ways, the financial crisis in Cyprus was the best thing that could have happened to Bitcoin. People the world over have realized, in the wake of this near-catastrophe, just how vulnerable traditional currency can be in the hands of a government close to ruin.

Since Bitcoin and government regulation are mutually exclusive to one another, those who take a cautious approach to investment have been looking towards the new currency as the perfect place to store their wealth. The Bitcoin is interest free, and it has seen an ever-increasing value in recent months—going from a value of around $40 just two weeks ago to approximately $130 today. 

The value of the Bitcoin is another major reason why investors have been flocking to it. The currency has more than doubled in value over the course of just the past few months, even weeks, leading many to believe that inflation could continue at a rapid pace. As a result, popularity of the Bitcoin has gone through the roof.

The endorsement of Bitcoin by Max Keiser may seem like a small aspect of a large-scale scenario, but it holds quite a bit more weight than one might think at face-value. Keiser is highly respected, and he has a strong track record for making accurate and wise financial predictions.

And he's so optimistic about Bitcoins, in fact, that he told RT: 

“I think bitcoin's price will reach $200,000 per bitocoin before Warren Buffett's Berkshire Hathaway's stock.”

A man of Keiser’s stature would not likely go out on a limb to endorse something as new and unorthodox as Bitcoin without strong reasoning, which brings even more weight to his recent endorsement. Savvy investors know that sticking to the words of those with a great deal of experience is the best way to get ahead, which means Bitcoin is quite likely to continue gaining ground in the coming months.

As more and more people become aware of how much control they actually have over their money, it wouldn’t be unfair to hypothesize a sea change in the way wealth is actually accumulated and stored. Bitcoin certainly seems to be a smart, potentially long-standing solution to a problem that has plagued the world for centuries, and it is likely to continue enjoying an impressive run.  


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