Financial experts who opposed the idea of Bitcoin until recently are slowly starting to rethink their strategy on traditional finance and the impact of digital currency. Mark Hart, a well-known fund manager and predictor of the 2007 financial crisis, sees a lot of value in Bitcoin, whereas the Yuan will lose a lot of ground in 2016. When even fund managers start flocking to Bitcoin, good things are bound to happen sooner or later.
Mark Hart Predicts Further Yuan Weakening
The year 2015 was not the year of the Chinese Yuan; that much is certain by now. To make matters worse, 2016 has seen a further decline in value of what was once briefly considered to be the next global currency. It remains unknown as to why the Yuan is losing so much value in a short amount of time, but we do know China’s central bank reserves are almost depleted and there will be no further artificial stimulation of the renminbi value in the next few months.
To be more precise, that is the vision of well-respected financial expert and fund manager Mark Hart. Some people may have heard the name before, as he successfully predicted the financial crisis of 2007, which made Hart a very wealthy man. Although lightning rarely strikes twice, a lot of people are paying attention when Mark Hart speaks, and rightfully so.
China is devaluing the Chinese Yuan in phases, rather than having the currency crash to the ground and rebuild it from that point forward. This creates financial turmoil across all the main stock exchanges, putting a lot of strain the world’s economy. Additionally, this raises the question of whether or not there will be a further government-controlled decline in Yuan value or not.
Investors have started looking for ways to diversify their portfolios, which is where Bitcoin comes into the picture. Despite best efforts by the Chinese government to enforce capital controls and stem the flow of funds moving out of the country, there is nothing they can do about Bitcoin trading in general.
Mark Hart stated:
“Bitcoin is quite appealing to me as a way to avoid capital control. I would rather not talk about the longevity of this digital currency, although i do feel Bitcoin has a lot of potential. However, I did purchase some bitcoins myself to make a profit on investment when people start looking for ways to circumvent Chinese capital control.”
Keeping in mind how the Chinese population saved up US$22 trillion altogether, there is a lot of money waiting to flow elsewhere. Even just a tiny fraction of that amount will send the Bitcoin price skyrocketing. Only time will tell whether or not this will happen, though, but Bitcoin is becoming a more viable alternative every day.
Source: Beurs (Dutch)
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