Is Bitcoin the Answer to the Bond Bubble?

Hailing from Australia, Livera and Kieser conversed at the Honeybadger conference – a popular Bitcoin event held in Latvia that houses speakers from across the globe.

Bitcoin and the Bond Bubble

Livera, who hosts a “must-watch” podcast, has been doing so for just over a year now. He’s a self-taught economist who believes that most fiat financial methods, like bonds, are sitting in a bubble. The podcaster believes Bitcoin is the answer to that bubble. He claims this answer comes from his Austrian economic education. That based on the Austrian framework, one can understand why Bitcoin’s “fixed-money” isn’t as much of a problem as many in economics think it is. Keiser responds to this, stating that “economic insanity” is becoming normalized with negative interest rates, for example. Livera speaks more on bonds and claims that the market is suffering from “fool’s theory” – where, to put it simply, people think they can buy something and then sell it to someone else for a higher price, and so on. This practice, in the bond market, pushes bonds more into negative yield territory. As this keeps happening, a fallout will eventually occur, otherwise known as a bubble bursting. Max agrees, stating that bonds are more overvalued now than they have been in 300 years. Bitcoin, which doesn’t appear to be in a bubble, very well could be an answer to that.

Australian Bitcoin Boom

The two also discuss how the Bitcoin boom started over in Australia, to which Livera responds stating that at first, it wasn’t unlike the rest of the world. There were tons of groups that didn’t fully understand blockchain, Bitcoin, and cryptocurrencies as a whole, but pretended they did. However, nowadays, there are many more legitimate groups examining Bitcoin in the country. There’s still confusion, though. Livera says that there are still many who don’t understand Bitcoin can be a “solution” to many financial problems nowadays. It isn’t viewed as “hard money” for now. He claims that a financial system built on top of Bitcoin could be an answer to the current failures. What do you think about Livera’s claims? Is Bitcoin the answer to the bond bubble? Let us know your thoughts in the comments below!

---

Images are courtesy of Shutterstock.