Wednesday, 13 February 2019

Latest News - Bitcoin Giant BitMEX: Major Financial Crisis Could Be Several Years Away

The economy is doing just fine, they say. No, maybe not. A growing number of economists (and notable ones at that) have begun to tout theses accentuating that the world’s economy isn’t in clear waters, in spite of the seemingly ever-rallying stock market. Bitcoin giant BitMEX’s research division broke down this subject matter on Tuesday, as it released an extensive study regarding the “anatomy” of the potentially inevitable global fiscal imbroglio.

Hold on to your hats, what they wrote wasn’t all too pretty.

The Impending Crisis & Bitcoin

The research unit at the Hong Kong-headquartered exchange first laid out a number of ground rules, explaining that since the rise of modern society, financial crises have brutalized investors every decade or so. BitMEX Research went on to leverage dozens of statistics to outline the state of the global economy as it stands.

Long story short, the team of researchers and analysts noted that the current financial system is currently unstable and fragile, backing their claim by drawing attention to the dichotomy between the overall lack of volatility and sudden spikes in the VIX. They noted that this instability has only been underscored by low-interest rates and a tumultuous political climate (think Brexit, Trump/China, and the Yellow Vests), making it all the more likely that a crisis is brewing under the surface.

And with all that in mind, BitMEX’s research team noted that maybe it would be wise for investors to start building portfolios that mitigate risk. The exchange’s team wrote;

“Maybe one could construct a portfolio of VIX calls, long dated corporate bond ETF puts, index-linked government bonds, hedge funds specializing in volatility, gold and maybe to a lesser extent, even Bitcoin. Again, although one cannot know when these events will occur, perhaps now is a time to adjust one’s investment portfolio.”

Related Reading: European Central Bank Exec: Bitcoin is the “Evil Spawn of the Financial Crisis”

Financial Incumbents Are Waving Red Flags Too 

Even the mainstay in the legacy financial realm, the International Monetary Fund (IMF), has begun to express a sentiment that should have both institutions and common Joes worried. In a recent speech at the World Government Summit in Dubai, IMF’s Christine Lagarde remarked that there are “four clouds” closing in on the global financial environment, even quipping that a “storm” might strike.

Lagarde explained that these clouds include the trade spats between the U.S. and China, quantitative tightening, Brexit, and, arguably most importantly, the “heavy debt” that governments, individuals, and corporations alike have garnered.

The post Bitcoin Giant BitMEX: Major Financial Crisis Could Be Several Years Away appeared first on NewsBTC.

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