Since the COVID-19 epidemic has caused tremendous damage to the world, not only to life safety and public health but also to the global economy and financial markets. According to the IMF’s latest forecast, the global economy may shrink by more than 3% in 2020. Among them, developed countries will generally experience negative growth, while China and India may only be able to maintain normal growth.
Facing this such a large scale of disaster which much more grievous than any economic crisis happened in history, the issuance of government bonds and the printing of money by the central bank are the most common ways to help the troubled laborers and enterprises. The United States has issued three rounds of fiscal stimulus policies. The total stimulus scale exceeds 2.1 trillion US dollars, and the fourth round of 484 billion US dollars of stimulus is about to be launched. These four rounds of quantitative easing will reach 2.6 trillion US dollars, accounting for about 19 years of US GDP 12%. This is an appalling number, equivalent to an 8.9% discount to everyone’s wealth.
In China, the release volume of central banks will only greater than the United States, which is about 50% higher. The release by the United States is shared by people all over the world. Since the RMB has not yet completed its global currency mission, most of China’s releasing is undertaken by the Chinese people. In other words, when the United States releasing, the Chinese people will bear part of it. When China releasing, the Chinese people will bear most of it, which results that wealth will be discounted. It is imperative to give up holding cash and find a safe investment channel and high-quality safe-haven assets.
Traditional safe-haven investment assets include treasury bonds, gold, etc. However, this financial crisis is on the upswing, and traditional safe-haven assets are no longer sufficient to ensure that assets do not depreciate. Bitoffer analyst Lucian believes that the Bitcoin ETF fund may be the best safe-haven asset at this stage.
First of all, Bitcoin is known as “digital gold”, and Bitcoins are operating in a decentralized blockchain network, and they are almost impossible to lose (unless you forget your private key), which is safer than gold hidden in a safe box at home; secondly, Bitcoin itself is easy to carry and can be used for payment with more versatile than gold. On the one hand, it is the storage function of digital gold, on the other hand, it has the payment and circulation function of currency. What is rarer is that the price of Bitcoin is seriously underestimated, and it will continue to rise in the future.
The Bitcoin ETF fund is the best tool that can amplify Bitcoin’s earnings. Why do you say that? Although futures can also amplify Bitcoin gains, they are prone to liquidation. Once the price volatility is large, future liquidation will make investors lose a lot. While Bitcoin ETF funds are not the same. Through the dynamic adjustment mechanism, ETF funds do not have the risk of liquidation, and through the continuous increase of the fund’s net value, they can also continue to use earnings to earn income again with at least 3 times, up to 17 times profits.
For example, when using $10000 to purchase a Bitcoin, when the price doubled, your profits will also be doubled. While without the risk of liquidation, ETF funds can make at least 3X, up to 17X profits, which means when Bitcoin rises $10000, ETF will earn the highest $17000 as profits.