Stone Ridge follows MicroStrategy to go big with BTC, as a report puts the indirect cost of Coronavirus at $16 billion.
Bitcoin (BTC) is winning the battle of the safe havens as another corporate buyout sees $115 million go onto its books.
Asset management giant Stone Ridge confirmed it made the significant purchase through its subsidiary New York Digital Investment Group, or NYDIG, which now has more than $1 billion in assets under management.
Economist: Fed to print $5 trillion by 2021
„The macro context in public health has caused many people to reconsider the composition of their portfolio,“ the company’s new CEO, Robert Gutmann, told Forbes on October 13.
3 reasons why MicroStrategy adopted Bitcoin and why others will do so
Michael Saylor, CEO of MicroStrategy, who purchased $425 million of BTC in August and September, responded:
„As the trillions of dollars on the balance sheets of banks, asset managers, insurance companies, donations, and family offices begin their migration to the Bitcoin Up universe they will need companies like NYDIG to guide them. USD 1 billion less, and still missing.
The news comes as a new report warns that the U.S. Federal Reserve will need to print $5 billion next year.
Bitcoin’s price of $17,000 is a real possibility if the bulls turn the $12,000 into support
Published on October 12th, the report by economists Lawrence ‚Larry‘ Summers and David Cutler estimates that the indirect cost of the coronavirus is 16 billion dollars.
„The total cost is estimated at more than USD 16 trillion, or approximately 90% of the annual US gross domestic product. For a family of 4, the estimated loss would be nearly USD 200,000,“ he summarizes.
For a family of 4, the estimated loss would be nearly $200,000.“ „About half of this amount is the loss of income from the COVID-19-induced recession; the rest is the economic effects of a shorter, less healthy life.
Commenting on the findings, David Rosenberg, chief economist at Rosenberg Research & Associates, concluded that the Fed alone would need to print $5 trillion of liquidity by 2021.
This would exacerbate the sense of unease that began with this year’s massive printing of money, which has sent the U.S. national debt to over $27 trillion.
Bitcoin also has a ‚dark forest‘ waiting for you to lose your funds
Rosenberg told Twitter followers to buy gold, but for Max Keiser, there is a clear alternative that makes more sense.
„Gold works, but #Bitcoin is THE FASTEST HORSE IN THE RACE,“ he wrote in response to Rosenberg.
Bitcoin peaked at $11,690 Tuesday before returning to $11,400 at press time, still with monthly gains of 10.5% and annual returns to date of 60%. As Cointelegraph reported, hopes are rising that the short term will bring more advantages, with even USD 17,000 coming into play if USD 12,000 becomes support.
V-shape to K-shape
For the trust economy, however, the picture looks much bleaker, according to new comments from the International Monetary Fund (IMF).
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Speaking to CNBC last week, IMF Managing Director Kristalina Georgieva said the outlook for many countries now is not a V-shaped recovery, but a K-shaped one.
„Most countries will face an uneven recovery, and we see a ‚K‘ in many cases, with parts of the economy doing very well and other parts contracting dramatically,“ she predicted.
For Keiser, this was a textbook definition of a phenomenon he calls „neo-feudalism. This involves concentrating more of the world’s wealth closer to the state at the expense of those farther away, creating the modern equivalent of lords and peasants.
„The extreme concentration of wealth created by Covid becomes permanent. This would be a new Middle Age,“ he tweeted Wednesday.
„Bitcoin fixed this.“