Mark Yusko says that cash is king due the coronavirus crisis, but we will eventually see Bitcoin in the crown
- A historic economic shock
- Bitcoin will end up sitting on the throne
Hedge fund manager Mark Yusko believes that cash is king during the coronavirus-driven liquidity crisis, according to his latest interview with CNBC’s ‘Trading Nation.’
However, Bitcoin is ‘next in line’ to its throne during the upcoming economic fallout.
A historic economic shock
On March 14, a Manhattan-based Bank of America branch reported that it temporarily ran out of $100 banknotes.
However, Yusko believes that it’s not too late to rush to cash as the number of confirmed coronavirus cases has already surpassed 1 mln worldwide.
The Dow, one of major U.S. stock market averages, has just had its worst first quarter in history with a 23.2 percent skid.
While Fundstrat’s Tom Lee predicts a speedy recovery as early as in April, Yusko appears to think that there will be a very ‘drawn-out’ bear market that could match only the Great Depression that ravaged the world in the 1930s.
“The economic shock wave that’s coming is going to be like nothing that any of us has ever experienced because it’s going to be very similar to the 1930s.”
Bitcoin will end up sitting on the throne
Despite the fact that cash is now the go-to flight to safety for investors, Yusko is certain that Bitcoin can serve as a hedge against the potential collapse of the financial system.
“Look, we think Bitcoin is a great asset as a piece of your portfolio (not as your whole portfolio). One of the things about Bitcoin is that it’s an opt-out. It’s insurance against the collapse of the financial system.”
The American investor claims that the massive dose of monetary stimulus could weaken western fiat currencies. As reported by U.Today, the U.S. Federal Reserve unleashed unlimited QE coupled with near-zero interest rates.
Eventually, Bitcoin will ascend to its rightful throne.