Bitcoin appears to be turning people left and right. Who were once bitcoin haters are now bitcoin lovers, and George Ball – the former Prudential exec who in a recent interview discussed the potential safety of using and holding the world’s number one cryptocurrency by market cap – has explained in a follow-up discussion that the asset’s price is about to explode after Labor Day of this year.
George Ball: Bitcoin Will Surge Further in September
Bitcoin has been on a serious roll over the past few weeks. The currency has gone from the mid-$9,000 range to the low $12,000 range since July, marking a near $3,000 gain in a relatively short period. George Ball says he’s never been a huge advocate for bitcoin or blockchain technology, but the current times and conditions they present regarding the world’s finances are making him change his mind.
I’ve never said this before, but I’ve always been a blockchain, cryptocurrency and bitcoin opponent. However, if you look right now, the government can’t stimulate the markets forever, so the very wealthy investor or the trader probably turns to bitcoin or something like it as a staple.
The idea is that further stimulus funding as a means of invigorating the economy during the coronavirus pandemic is going to have significant results, not all of them pleasant. Many have turned to bitcoin out of fear that the U.S. dollar and other fiat currencies will be subjected to inflation. They now see bitcoin as a strong financial tool that can potentially hedge their wealth against all harsh economic conditions.
Ball continued to state:
Traders and investors are going to worry about what happens when you can’t kick the can down the road in terms of stimulus or subsidizing people any longer. The liquidity floods will end sooner or later. The approach of the end of that road is going to be a lot closer by the fourth quarter than it is now, and therefore, both traders and investors should and probably will realign their portfolios substantially.
To an extent, we’ve already witnessed this behavior given that companies like MicroStrategy Inc. are beginning to invest hundreds of millions of dollars into bitcoin and other cryptocurrencies. In addition, Grayscale recently announced more than $1 billion in bitcoin investments during its second quarter for this year, constituting more than $300 million in BTC investments per month for three months.
Labor Day Will Bring Crypto to New Heights
He believes after Labor Day people are really going change up their investment portfolios and will begin buying all the bitcoin they can find. He explained:
The time to reposition portfolios is before the fuse is lit, or when the fuse has been lit but hasn’t exploded yet… The notion isn’t to hide or seek a tax refuge, but to have something that can’t be undermined by the government.