The world will not adopt a Bitcoin or gold standard, says Peter Brandt
Bitcoin (BTC) and crypto-currencies will not have their big break thanks to problems with trust economics, says veteran trader Peter Brandt.
In a series of tweets on July 22, the popular commentator predicted that in the future, the world will resort to so-called special drawing rights (SDRs) based on multiple fiduciary currencies.
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Goodbye gold standard
Similarly, Brandt stated that there would be no return to the gold standard, while the SDR configuration would not include Bitcoin or altcoins either.
The SDRs were created by the International Monetary Fund (IMF) in the late 1960s as an extension of member states‘ reserves. Today, according to the latest official IMF data, the equivalent of about US$281 billion has been issued.
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According to Brandt, the future SDR basket would consist of seven major fiduciary currencies, along with precious metals and oil.
„Forecast: the world will NOT return to the gold standard,“ he wrote.
„The world could adopt a global reserve unit ‚SDR‘ consisting of USD, JPY, CNH, EUR, CAD, AUD, GBP, gold, silver, crude oil. #Bitcoin #BTC or other crypts will NOT be part of the basket.
Gold continues to reach higher peaks after remaining at its best levels since 2011. Silver is also at multi-year highs.
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Brandt attacks „arrogant“ crypto maximalism
Proponents of Bitcoin often argue that the disappearance of the gold standard directly caused the now pervasive problems within the trust system. By allowing central banks to control the money supply, their own interests would eventually take precedence, writes Saifedean Ammous in the popular book „The Bitcoin Standard.
Brandt, however, is suspicious of those who see Bitcoin as the solution destined to usurp the fiat entirely.
„Eventually, the entire monetary system will evolve beyond paper money. But in the short term (10 to 20 years) the only way out of debt for governments is to deflate the dollar,“ he continued.
„I am only opposed to the arrogance of the crypt-currency community to assume that their beloved holdings will replace all assets.
His words come as the United States prepares to release trillions of dollars in new stimulus, which adds to the Federal Reserve’s balance sheet. The BTC/USD pair was boosted by the news, rising to peaks of USD 9,550 on Wednesday night.