Financial Analyst: Bitcoin Can Change the Rules of the Game and Reshape the Precious Metals Market

This week, financial analyst and precious metals proponent Andy Hoffman spoke with Greg Hunter of USAwatchdog.com about his views on the global economic downturn. During the interview, Hoffman touched on the rise of cryptocurrencies and why he believes Bitcoin is a game changer for the world.

The Weakening of the Fiat Currency System

Hoffman is a well-known financial analyst who believes that the global economy is suffering a major blow due to increasing debt. Hoffman said that it is difficult for the public to see this fact because the stock market and other manipulated markets are performing better and better. He explained:

They created 'Internet value' (cf. the dot-com bubble) during the 'Great Depression', from which only 1% of the population benefited.

The biggest, most destructive Ponzi scheme has come to an end. It can't go on any longer. They can't say the economy is getting better - all the market manipulation and money printing is fading away and all that's left is hyperinflation.

Bullish on Bitcoin

Hoffman explained why he believes precious metals have strong safe-haven properties in the midst of global economic turmoil. He then discussed cryptocurrencies and their price growth over the past year. Hoffman said he is bullish on Bitcoin, but he believes that cryptocurrencies are still too young and volatile.

While I am bullish on Bitcoin, it is currently caught in the middle of the scaling debate and the battle with governments. Once governments start to worry, they will take action like China did with its capital controls in January. Even if they fail, they can put up other obstacles. The U.S. government can say it is going to ban Bitcoin or shut down Coinbase and anything like that to scare people.

He went on to say that such “wars” could temporarily cause high volatility in the price of Bitcoin, and he also mentioned that it is easy to misunderstand when someone says Bitcoin has no “intrinsic value.”

Believe me, the network effect plus the mining costs is a significant intrinsic value - but the fact is that they are still very volatile.

Bitcoin and precious metals are allies

Even though there are a lot of risks associated with cryptocurrencies right now, the analyst still believes that precious metals and Bitcoin are on the same page.

Last May I wrote an article - Precious Metals and Bitcoin: The Twin Destroyers of the Fiat Currency System. I mentioned in the article that the two are allies. But when you talk about Bitcoin, 99% of precious metal investors have no idea what you are talking about. They see Bitcoin as a competitor without doing any research. It seems that as long as they say Bitcoin is bad, it will go away and be ignored.

That is not the case, Bitcoin has found its footing, whether it is a complete success or there are problems - cryptocurrency has found its footing - and cryptocurrencies as a whole should be grateful because it is also fighting a war, just in a different way, it is more like a 'guerrilla war' due to its decentralization and fewer attack vectors.

For example, Hoffman stressed that the government can't confiscate some people's Bitcoin because they are smart and store their funds in hardware wallets. However, as Bitcoin gradually becomes the focus of media coverage and its popularity increases, the government will feel threatened. In fact, Hoffman believes that the increased attention to cryptocurrencies will also help drive the market value of precious metals.

Bitcoin will relax its guard against gold and silver.

Bitcoin is a game changer

As for other cryptocurrencies, Hoffman believes there will be “a lot of losers because most of them are scams just to attract hot money.”

So you better do your research - I just believe in Bitcoin because it is a game changer for the world and the gold and silver markets.