Max Keiser, the founder of Heisenberg Capital Ltd, recently stated during an interview with Bitcoinist that the Bitcoin (BTC) protocol “is genius.” He explained that “the more you understand” how it works, the “more clarity you achieve.”
Keiser also revealed why he thinks bitcoin’s price has fallen sharply. Per his words, the cryptocurrency's price "got ahead of itself" and what happened was a "typical pullback." He noted that since he bought BTC at $1 in 2011, he's "seen a few of these."
Going on to elaborate on how long he believes the crypto bear market will last, while also confirming that we are in for a long “crypto winter” (according to analysts), Keiser remarked;
The long-term chart is fine. It’s still bullish. Keep in mind, my cost basis is under $200.
Clarifying his stance on initial coin offerings (ICOs), he stated that: “We have given virtually no attention to ICOs because, as I’ve said on my show, ICOs are securities and fall under the regulatory jurisdiction of the Securities and Exchange Commission (SEC). Per his words, as a former Wall Street stockbroker, he is trained to " never to try and second-guess the SEC."
"Insta-Wealth Makes People Think They're Bullet-Proof"
Keiser, a 30-year Wall Street veteran, also shared valuable insights regarding how the SEC operates. When he's approached for his opinion of how the SEC should rule and how it works and fails to understand things, he finds it humorous as over his 30-year career he's seen everything, and believes "Human nature never changes. Insta-wealth makes people think they’re bulletproof."
When asked whether there are any correlations between the performance of the traditional stock market and that of cryptoasset market, Keiser explained:
I think the market sees Bitcoin as a ‘risk on’ asset, so it moves in unison with stocks. At some point, the market will understand that Bitcoin, like Gold and cash, is a ‘risk off’ asset. When the market realizes this, we’ll see ATH as safe-haven, capital flight money moves into Bitcoin.
Bitcoin's "Long-Term" Upward Momentum
Responding to the US Federal Reserve’s recent (in September) hike of interest rates by 25 basis points, which is notably the highest since April of 2008 (at the beginning of the global economic crisis), Keiser claimed we "never left the financial crisis." He added the "number of zombie banks and zombie corporations" has been on the rise, leading to an increase of dislocations and malinvestments.
Keiser continued to explain how bitcoin, could help by providing investors a hedge against another possible financial crisis. He stated: “the long-term trend is intact and will continue its upward path.”
Commenting on the recent surge in BTC trading volumes in Venezuela, Keiser said:
Against the Bolivar, Bitcoin, and Gold have had incredibly powerful upward moves. Only using the $USD to map BTC’s performance and impact is shortsighted and misleading. Think global.
As CryptoGlobe reported in late August, an extensive four-month-long investigation revealed that there was “no evidence” of the controversial, president Nicolas Maduro-backed Petro cryptocurrency being used in Venezuela. When asked whether national digital currencies such as the Petro could realistically compete with Bitcoin, Keiser said: “No. Too centralized.”
In response to a question about what he thinks of the Bitcoin Cash “hash wars”, Keiser remarked that the cryptocurrency's protocol was rejected by bad actors, as maximalism is all about understanding Bitcoin has the power to create a "fiat-free world while simultaneously destroying all that get in the way."
Interestingly, Keiser also believes bitcoin is a monetary black hole that'll "gobble up all fiat and rise to more than $100,000 doing it." Humans, however, may never see it rise to that point, as he has more faith in BTC thriving than in Humanity surviving an ecological holocaust.