This is an Interview with German financial consultant and Youtuber Marc Friedrich, who also is passionate about Bitcoin and digital currencies. He has realized several book and also talks about the end of the monetary game with reasons for why our money-system is just not working anymore. The best selling author of The Biggest Crash of All Time will soon release his next book which is about Bitcoin being the next safe haven. Take a look and see if you agree with this master critical thinker.
Interview Date :9th April 2020
Bitcoin is through the Lindy Effect
I went out in public about Bitcoin at the end of 2016. I wrote a long article for a big German magazine. This is a magazine where I always give a prediction about the economy for the following year. So, at the end of 2016, I predicted the following year would be the year of Bitcoin, and you all have to invest! That was the first time I said it to the public. This was not to our customers, because we already introduced Bitcoin to our customers and invested in it since 2013.
However, in 2016 I think Bitcoin was through. What I mean by that can be explained through the Lindy effect; if a new technology arrives and survives a certain period, then it will not disappear and it will stay permanently. It will not go away, and this was established in 2016. I talked to a lot of Bitcoin people and insiders, and they told me we are through and now this technology and invention is here to stay. My prediction at the end of 2016 was that the value of Bitcoin would double. In 2016, the value of Bitcoin was around 600 euros. Do you know what happened in 2017? its value was around 1500 euros, meaning 20000 USD. Since then I have been named the guru here.
However, this sharp increase in price was also of course not normal or healthy, and not sustainable for Bitcoin. I never had doubts about it, even when we experienced great dips now and then. I love to invest through nature and mathematically limited assets, and Bitcoin is the first limited asset. If you invest only 1%, 5%, or 7 %, that’s enough. With that, even if it would go sour, it won’t kill you. You won’t have to sit on the street or something. You made a bet as you do with any investment, but I think it is the most potential bet as of now in our lifetime. Everybody should take a lottery or any other kind of card and try it. Just try investing 100 bucks and just wait 5 or 10 years.
Everybody will see and realize that this monetary system with fiat currency will collapse, and we need something that is limiting in nature or through the math to keep it up and functioning. So hey who do you trust more? The central banks that print like crazy as if they are out of their minds, or do you trust algorithms and math more? I have made my decision and you have to make yours.
You cannot just abolish virtual currencies
If one-day currency would become an official asset that people could use for purchases, to pay for things with, and for trade like we do with cash today, there needs to be regulations and they are already building it around. However, too much regulation can also kill the spirit and the nerds in this industry. So this is a very difficult path. I think Bitcoin did just fine without regulation and it survived for 11 years, and it will stay around for the next 150 years.
But there is a problem, because some countries do regulation and some countries don’t, and they will always fight. If one country for example would abolish or ban Bitcoin or the trade of Bitcoin, you would just go to another country. Look at China; they banned it and people just bordered over to South Korea or Japan. It is digital and decentralized, so you cannot just abolish it. That’s what they are realizing now and try to do something about it.
It’s my passion for teaching people about Money
I think there is an urge for teaching people about money and value that I feel inside. I think because I lost money when I was in Argentina during the state bankruptcy in 2001 it has become my passion. I also studied German history and read about how people had lost money during the great depression, hyperinflation, and also about the economy during the Weimar Republic period in 1919-1933. Ever since I was a small boy, I always wanted to make the world a better place. This was just a thought that I was thinking to myself about. My mother or other people around me never talked about it to me or anything. I guess, I feel like it is my duty and it is my sense of life. Everybody is here on the planet with a purpose planned for them and I guess this is mine; to educate people. I always hated it when the weaker ones or the smaller ones get exploited or harmed. So, I have always fought for the weaker ones since I was young.
Credit Card & Plastic cards are Pushing more and more
Before, people would earn money by working and sweating for it. Nowadays, younger generations are using e-money like credit cards, etc, and so have lost the sense of what the value of money is. This is true, and that is why we have so many credit cards and other plastic cards. These companies want people to spend more money to keep the wheel spinning. The system needs to grow, it needs debts, and it needs more money flow. However, by doing so, we as the people lose control over our financial records and our own wealth and money if we don’t think straight. Companies do not want us to think straight, and that’s why we have more and more credits and credit cards, and everything else like PayPal, etc. It is much easier to purchase now than before when we are only one click away from it. People are understanding this problem now, and so are wanting to track where the assets are going, and this is possible with blockchain technology. People are embracing it due to it being so much easier to control and have an overview of.
The limitation factor of Bitcoin is very important. 21 million coins by 2040 and that’s it. There is real value behind every coin because of its scarcity. In contrast, if you print trillions of dollars with no limit, what’s the value when no one is using it? It will have no use-case. Looking at the central banks that are printing like crazy with nothing to back up this issuance, the only thing that they are doing is creating hyperinflation and the biggest monetary system ever. You cannot print wealth, you cannot print against climate change and also not against a pandemic virus either. This will collapse and will just not work anymore. Fortunately, people have started to realize it slowly. The Biggest Crash, which I titled my book, did become a best-seller because what is written is true; there is a collapse coming very soon and we are already in the beginning in this spiral. It is unfortunately true.
Crazy Debt to GDPs !
All the countries that have tried to use this printing press like Zimbabwe, Venezuela, Argentina, Germany have failed. I imagine Japan also collapses soon. Japan’s government debt to GDP ratio sits at around 240% which is just crazy. I just saw the new figures from the Bank of Japan ETF; they print like crazy, and they own around 50 % of the domestic index funds, National Treasuries. I believe it is 5.5 trillion USD that they have on their insane balance sheet. This is by all means not only Japan, but Germany and other countries like this that are in a similar situation, and with America having more than 13 trillion USD in debt is impossible to pay back. They will never pay it back. So, there must be a monetary reset which is coming closer and closer that will be the financial monetary end-game. Unfortunately, someone has to pay, and that will be us the people, the citizens. We will be ones who have to clean up and pay for the mess the governments have been creating. Not the politicians or the central banks or government, it will most probably be us to pay for it. In a couple of months or years, the latest 2023, I believe it will collapse and we will have to figure out a new monetary system going on from there. As I mentioned, there is no control or solution within this system right now.
While all this is happening, the value of crypto certainly will increase. There will be volatility, but I’m a long term investor and believer, so in the long term it is going to get more stable and its value will increase. We can expect a different price ranges. You have to make your research. One day you may look back in the mirror and think “it was so incredibly cheap in 2020” Right now it may be a lifetime opportunity, but perhaps I am wrong. So we don’t know until after the monetary crash happens.
Interviewer , Editor : Lina Kamada
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