More On: bitcoin falls
High inflation could be a result of the crisis between Russia and Ukraine, according to David Rubenstein. Consequently, a lot of individuals are turning to cryptocurrency.
One of the wealthiest people in the world, David Rubenstein, recently talked about what the invasion of Ukraine could mean for investors. Rubenstein said that the war had caused inflationary pressures in the post-covid economies of Europe and the United States, which made people turn to cryptocurrencies.
In the podcast, he stated:
“I was skeptical of crypto in the beginning because I figured there’s nothing underlying this. But it’s clear to me now that many younger people don’t think that there’s much underlying the dollar or the euro or other currencies so they think, I really can’t get gold for my dollar anymore.”
David then further elaborated:
“So maybe the government’s promise to make it valuable isn’t maybe there when you have so much money you’re borrowing and you’re inflating your way out of the value of the currency.”
Alongside those comments, Rubenstein also mentioned how crypto financially aids residents of the war-affected regions. In that line, he said:
“If you’re in Ukraine or you’re in Russia and you want to have some assets and your country has got lots of challenges, having some cryptocurrency probably enables you to feel better that you can have something that’s outside of the government’s control and it’s not dependent on the bank opening up its doors to you.”
Rubenstein said that as inflation gets worse in the next few years, more people will start using crypto.
In many countries, Bitcoin is already used as a way to protect against inflation that comes from both wars and from inflation that comes from other things. Also, many VIPs like the Prince of Serbia and Max Keiser were interested in this trend. "Americans with less than 20 Bitcoin won't be able to make it," said Keiser.
War has an effect on the world's economy.
David Rubenstein said that the Russian invasion of Ukraine is delaying the much-needed stimulus that post-covid economies need to get back on their feet, he said:
“…as the global economy was beginning to recover from COVID, we now find ourselves in a free-fall a bit, in terms of the global economy. We’re seeing a dramatic decline in obviously the Russian economy and the Ukrainian economy — but it’s spilling over into the European economy, and to some extent, the US economy.”
Adding that there is no way to know how the global economy will do before this conflict is solved.
Finally, he said that the uncertainty and problems with the global economy make prices go up.
“People who haven’t had to ever worry about inflation are now beginning to do so. The price of everything you buy day-to-day is probably going to go up…it’s getting to the point where people are nervous about it.”
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