George Ball – a former chief executive of Prudential Securities and present CEO of Sanders Morris Harris – has referred to bitcoin as a “safe haven” in his latest interview, referring to its many properties and qualities that can ultimately assist investors in remaining strong during unprecedented economic times.
George Ball: Bitcoin Is Stronger Than We Think
George Ball isn’t necessarily saying anything that a lot of other people in the crypto space haven’t already thought. However, it’s always nice when someone working predominantly in the standard or traditional monetary ring has something nice to say about bitcoin and what it can do. He states:
The government can’t stimulate the markets forever. The liquidity flood will end. Sooner or later, the government’s got to start paying for some of these stimulus maneuvers, for some of the deficits, for some of the well-deserved, very smart subsidies that it’s providing to people. Are they going to raise taxes that high? Or, if not, are they going to print money? If they print money, that debases the currency and probably even things like TIPS – Treasury inflation-protected securities – can be corrupted.
Ball seems to be echoing what a lot of other people have either already said or felt. Despite a brief drop into the high $3,000 range in the middle of March, bitcoin has earned a newfound reputation as a strong financial tool that can potentially hedge one’s wealth during economic crises. Many began believing this after countries such as the United States began unveiling stimulus measures to keep the country and its citizens financially stable during the onslaught of the coronavirus pandemic.
While the measures were designed to help citizens, many explained that the idea of printing additional money would potentially put the U.S. dollar in a serious bind and lead to heavy trouble for the nation. Much of this negative sentiment came after the government announced it would be sending $1,200 stimulus payments to most citizens in the country that made less than $75,000 per year.
Figures such as Elon Musk of SpaceX and Tesla fame were quick to denounce these stimulus orders, claiming that excessively printing money could potentially bring great harm to the U.S. Simply printing money out of thin air like that couldn’t be done without serious repercussions such as inflation.
Maybe the Stimulus Can Help the Currency Get Bigger
Ball believes that these stimulus measures have set up a prime environment for an asset like bitcoin. The digital currency is now poised to serve as some sort of staple currency, in which more people turn to bitcoin as a means of remaining financially sound and away from further Fed-based control.
He was also quick to suggest that the institutional presence in the crypto space is getting quite heavy, which could potentially bring the price of bitcoin to new highs and bring the cryptocurrency a higher level of use in the future.