Long-term Bitcoin enthusiast and CEO of MicroStrategy, Michael Saylor took to Twitter (NYSE:TWTR) to share an article from the Wall Street Journal that discussed the Bank of England buying bonds in an effort to avert a financial crisis.
Saylor offered some words of advice, stating that whenever central banks intervene to prop up their own bonds, they cripple the capital markets and cause their own currencies to collapse.
The effectiveness of sovereign debt as a treasury reserve asset is declining over time. Bitcoin, in his view, presents a viable alternative that is both economically and ethically sound.
In the article, it was stated that the Bank of England will purchase long-dated government bonds issued by the United Kingdom in whatever quantity is required to lull the markets and restrict the financial crisis from causing economic harm.
The price of bonds increased across the board, including in the United Kingdom and other markets, which resulted in decreased borrowing rates. The yield on 30-year government bonds in the United Kingdom dropped precipitously to 3.93%, from above 5% before the announcement. This is the kind of adjustment that would ordinarily take weeks or months to play out.
In a related development, Saylor disclosed that he anticipates bitcoin will return to its November high of about $69,000 over the next four years and he predicted the token may approach $500,000 sometime within the next decade. Furthermore, he added: “The next logical step for Bitcoin is to replace gold as a non-sovereign store of value asset.”
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Source: Cryptocurrency - investing.com
