Simon Dixon Predicts Bitcoin Boom Amid Widespread Failure of Banking System
Simon Dixon, CEO and co-founder of crypto investment platform BnkToTheFuture, is detailing what he sees happening to Bitcoin once stimulus packages and aid finally run out.
In an interview with Daniela Cambone, Dixon says that private banks could inadvertently crash the real estate market, creating a deflationary mess that wrecks the banks.
“Eventually, I believe that when the stimulus packages stop and helicopter money stops, then the true nature of people’s individual balance sheets comes out and the first place that hits is the real estate markets.
The real estate market is really the mechanism by which private banks create digital currencies every time they issue a loan. So if the banks haven’t sold enough of those toxic assets to your pension like they did before the last financial crisis, then it exposes the banks’ balance sheet for what they are and because banks are definitely too big to fail the impact of that deflation on the global world would be disastrous for all.”
Unlike with the 2008 financial crisis, Dixon believes that governments may not intervene to prevent banks from collapsing, necessitating a new form of currency.
“I believe this time rather than bail-ins and bailouts, because of all the social unrest at the moment, [government bailout] could be replaced with just simply letting the bank go bust.
And rather than using some of these FDIC (Federal Deposit Insurance Corporation) insurance schemes that only have approximately 1% of all the deposits its insuring or less than 1%, then you need a new form of money that will be injected into the economy and a real simple way of doing that is just simply creating an app at the central bank and the central bank saying, ‘Everybody download this app, you’ll get some helicopter money,’ and if the Chase bank goes bust then any deposit you had will be replaced with this new central bank digital currency.
You’re essentially replacing debt-based money that was created by a private bank with non-debt-based money created by a central bank and you have a non-inflationary mechanism for deleveraging the economy and then we’re going to have currency wars globally and the IMF wants to do that on a global scale.”
Dixon believes that people will not need to worry about their funds being frozen in these new central banking apps, but they should be concerned about their privacy and personal freedoms if these new forms of money should materialize.
Dixon highlights that through all the chaos of potential bank collapses, he expects BTC to undergo extreme volatility, but the trend will remain obvious.
“I’ve seen my $30 Bitcoin crash to $3 in one day. I’ve seen my $1,250 Bitcoin go down to $250. I’ve seen my $20,000 Bitcoin crash down to $3,000 in one month. I fully expect my $100,000 Bitcoin to crash to $30,000, but the trend is simply clear. The supply cannot be changed.”
Featured Image: Shutterstock/Elena11