Token2049: Is crypto the only safe space amid macro chaos?
During a panel discussion at Token2049, the founders of Real Vision, Pantera Capital and Ex Uno Plures talk about how the world is shifting towards crypto amidst piling global debt and economic uncertainty.
On April 30 at Token2049 in Dubai, founder and managing partner of Pantera Capital, Dan Morehead explained how the global trade system is now being disrupted. He compared the macroeconomic phenomenon to the shaking of a snow globe, meaning that traditional investments like stocks and bonds are no longer holding up amidst the economic uncertainty.
Though no direct quotes were permissible at the event, crypto.news attended and can confirm that participants discussed the role of crypto in navigating today’s increasingly complex macro environment.
Moreover, as Morehead pointed out, the contradiction of having high bond yields at the same time as high stock prices, suggests uncertainty in the market. Currently, as of April 30, U.S. 10-year treasury notes have a bond yield of 4.18%, while U.S. 30-year treasury bond yields stand at 4.71%.
Adding to that, Morehead said he views crypto as the safest bet amidst all the economic uncertainty happening in the world. This is mainly because crypto is largely disconnected from the traditional financial markets. He believes there is an emerging separation between crypto and the more traditional assets like stocks and real estate.
Historically, when traditional assets plummet, investors would flock to safe haven assets such as gold or cryptocurrency. Over the weekend, crypto assets soared, breaking the $3 trillion threshold in market cap amidst rising U.S. bond yields and public debt servicing.
Founder and CEO of Ex Uno Plures, Zoltan Pozsar echoes Morehead’s sentiment. He stated that even with the Trump Administration’s emphasis on strengthening the dollar’s position as the world’s reserve currency, it is ultimately just the invoice used to purchase other assets.
Even when traders purchase gold or cryptocurrency, the assets are mostly valued in dollars. Therefore, he argued the world is moving toward a more balanced and constrained framework. This framework might involve assets like gold, Bitcoin (BTC), and even changes in how the U.S. handles its fiscal policies
Ultimately, the focus is shifting from how much surplus one earns to how that surplus is stored and used, with more alternative assets like crypto now being considered legitimate and even supported by governments.
Co-Founder and CEO of Real Vision, Raoul Pal said the traditional financial system has always benefited the elite, because printed money became a scarce asset. What makes crypto a game-changer is how it essentially democratizes investments because of its fractional nature that enables everyone to get involved, even the unbanked population.
