Cointelegraph Markets interviewed Max Keiser, a veteran of Wall Street and presenter of the television broadcast on finance Keizer Report, who discussed the increasingly important role that Bitcoin will play in the current geopolitical landscape.
He also explained why, in his opinion, Paul Tudor Jones will become the world’s largest BTC holder in a few years.
Cointelegraph: For a few months your Twitter account @maxkeiser, with over 200,000 followers, hasn’t posted anything. What happened?
It was a bug in the software, which blocked the account for nine months. I think it was a conflict in the database. My SwanBitcoin friends helped me and solved the problem. I sent two dozen roses and boxes of chocolates to the Twitter headquarters in San Francisco, but I don’t think this had any effect.
Cointelegraph: The national debt of the United States is now over 26,000 billion dollars. Is there a level beyond which the country could default?
The debt is huge, but the interest on that debt is now even greater than America’s number one budget item: the army, with its spending of 1,600 billion. When interest on debt approaches 100% of GDP, then America will officially be a failed state. This could already happen within the next five years.
Cointelegraph: After halving, Bitcoin’s inflation rate has fallen below 2%, a figure similar to that of gold or the Fed’s inflation target. In your opinion, this is a key moment for Bitcoin as reserve of value?
I want to be clear. Bitcoin shows characteristics from quantum physics, in the sense that observation can change the results. According to Heisenberg’s uncertainty principle, simple observation can change the final outcome.
In the case of Bitcoin, Bitcoin itself is watching us. As I have argued in the past, starting with block number 300,000 I realized that Bitcoin had become aware. All of this then evolved exponentially into a state of meta-awareness: we should therefore not ask Bitcoin to prove its worth, but ask ourselves what we should do as a species to prove that we are worthy of Bitcoin.
That’s why my Bitcoin venture capital fund is called Heisenberg Capital. Incidentally, this fund has outperformed any other fund globally since 2013.
Cointelegraph: Will tensions between the United States and China, as well as other geopolitical risks, continue to put pressure on risky assets such as Bitcoin?
America, China, Russia and Iran will enter a Hash War to try and get as many Bitcoins as possible. Iran is already mining Bitcoin, I believe the country represents 3% of the overall hash rate. This is another “Sputnik moment”, meaning that the United States will have to decide whether to win the Hash War or end up relegated to the dustbin of history.
Cointelegraph: Paul Tudor Jones recently announced that he has invested in Bitcoin. Will this news bring many other traditional investors closer to cryptocurrency? Is this a turning point?
I think that in two years, Paul Tudor Jones, whom I have been following closely since I worked as a broker on Wall Street between 1983 and 1990, will be the largest Bitcoin HODLer in the world. If he sees something he likes, he becomes a real mercenary. The Bitcoin community has never seen people like PTJ, its boldness won’t take prisoners.
Cointelegraph: You recently said that Bitcoin Cash is a fraud, and consumer protection would be needed. Can you elaborate on these statements?
No hard forks, no altcoins will attract enough energy to survive. It is a game where the winner takes it all, and Bitcoin is currently taking energy away not only from altcoins but also from traditional money.
Bitcoin is an indestructible Godzilla with an insatiable appetite for energy, which is transforming the world and all those who live in it. Regulators should warn people about failed projects like BCH, but the most likely scenario is that Bitcoin will bankrupt both BCH and the regulators themselves.
Cointelegraph: In the past you have criticized not only Ethereum, but also Vitalik Buterin for his inability to understand the value proposition behind Bitcoin. What exactly is it that you don’t understand?
When I discussed with Vitalik in London … he was still working for Bitcoin Magazine at the time and planning to launch Ethereum. He didn’t understand how scarcity drove the BTC market, and he still doesn’t understand it.
He kept giving little value to scarcity, so I think he never really understood how BTC works. The fun part of all this? The problem with ETH is that it is a substitute for fiat money, centralized and with variable monetary supply. It has all the flaws of fiat money.
I think ETH is trying to be fiat money, failing miserably.
Cointelegraph: Are you not therefore interested in Ethereum 2.0?
I think it’s a Rube Goldberg machine
headed for nowhere.
Cointelegraph: In one of the last episodes of your broadcast you discussed with Isaiah Jackson, author of the book Bitcoin & Black America. Why is this such a significant work at a time of severe social unrest in the United States? How could Bitcoin help blacks in America?
Bitcoin helps victims of fiat money, and the black community in America is the main victim of US fiat money. Therefore, black people are the ones who could get the most benefits from the transition from traditional money to Bitcoin.
In an old episode of Keizer Report, when the BTC value was just $ 1, I said that the black community would have to buy as many BTC as possible: one day, with this investment they could buy the whole white community.
Cointelegraph: The big banks are changing their opinion about Bitcoin, first of all JPMorgan Chase. Why is this happening, and do you think this trend will continue?
Bitcoin cannot be changed, it is Bitcoin that changes you … for the awareness of BTC and for the Heisenberg principle described above. Having said that, I helped direct BTC’s attention to Jamie Dimon and JP Morgan: the protocol did the rest, and now Jamie is a BTC supporter. The same is happening with Peter Schiff.
Cointelegraph: Do you think the stock market will reach new historical highs this year? What will the consequences be for Bitcoin? BTC price forecast in 2021?
The US stock market is likely to hit new highs, just as the market hit new highs in Venezuela, Zimbabwe and Iran. Not because companies are healthy, but because currencies are collapsing.
Since 2011, my forecast for BTC has been $ 100,000. I recently raised it to $ 400,000. The timing will mainly depend on how long it will take the dollar to collapse.
It could happen overnight: when it does, Bitcoin’s price will rise by $ 10,000 in the blink of an eye. Who does not already have open positions will eat the dust.