Blockchain and the Wheel of Fate: The Role of Blockchain Technology in Disease Surveillance and Pandemic Prevention

There is a line in Stephen King’s The Stand that goes: ‘Life was such a wheel that no man could stand upon it for long. And it always, in the end, came round to the same place again.’

In The Stand, a man-made virus wipes out most of the world population within a short timespan. The antigen is a genetically modified flu-virus designed to be a constantly shifting agent, thus rendering it extremely or totally invulnerable to vaccines. The virus was part of a larger US Government-funded bio-weapons program known as Project Blue. 

Project Blue’s end game is a global Superflu epidemic, nicknamed Captain Trips. The Superflu rapidly spreads worldwide, thinning out the human race to barely a thread of existence. 

The Stand is a work of fiction, of course. The story deals with how the survivors (0.6% of the entire human population are naturally immune) deal with the new world, ultimately boiling down to a final stand between good and evil. 

But the book’s core message of a flu-like disease rapidly spreading and infecting an ever-increasing number of people across the world is very real and relevant indeed. 

It’s happening right now.

Coronavirus outbreak: The wheel has come to the same place again

At the time of writing, the coronavirus outbreak has killed almost 3,000 people worldwide, with more than 80,000 infections confirmed and rising, as the virus pops up in new countries. 

Pandemics, defined as international cross-border epidemics that infect and kill large percentages of the population have occurred through the ages. The deadliest perhaps are The Black Death in mid-14th-century that killed between 75 and 200 million people (true figure will never be known), and the 1918 Spanish Flu, which may have killed up to 100m people.

Global epidemics can occur anytime, anywhere, as we have seen with the ongoing coronavirus outbreak. The first case was detected in Wuhan, China, on December 31, 2019. Wuhan, a city of around 11 million people, became a hotbed for coronavirus infection. The disease spread like wildfire and soon reached other Chinese cities before crossing international borders. 

Modern air travel means that an infected individual can reach almost anywhere in the world within a few hours, which makes containment almost impossible, and global contagion a real possibility. 

So what can be done to prevent that wheel from coming back again to the same place as it did in the mid 14th century and 1918?

Using blockchain technology as a weapon to prevent pandemics

The Centers for Disease Control and Prevention (CDC) is the United States’ chief public health and disease prevention agency. CDC operatives show up wherever and whenever an outbreak of an infectious disease is detected. The CDC is researching how blockchain technology can become the latest weapon in their armamentarium to fight disease and prevent future epidemics from razing the world.

But this vital fight can sometimes be hampered by difficulties in the timely sharing of information with local health enforcement agencies on the ground. Language barriers, the sheer distance between the geographical location of an outbreak, cultural differences, and many other factors might become an issue that slows the transmission and exchange of information, which in some cases might literally become a life or death situation. Time is of the essence when dealing with outbreaks of the deadly disease.

Currently, the CDC uploads epidemiological data to a cloud-based solution, which is far from ideal as personally identifiable information cannot be stored there, due to data privacy and security risks, forcing on-the-ground operatives to find alternative solutions, which means more precious time-wasting. A blockchain-powered solution would address this issue, as data can be shared instantly while complying with data privacy and security regulations. 

But the CDC’s intended use of blockchain technology is only one of myriad other revolutionary use cases in healthcare.

We have seen that disease outbreaks can happen at any time, anywhere on the planet, with little or no warning. Blockchain will not prevent the outbreak itself, nothing can. These are natural events that have occurred in the past and will re-occur in the future. That wheel spins all the time, remember.

But what blockchain can do is create the first line of rapid defense through a network of connected devices whose only purpose is to remain vigilant about disease outbreaks, 24/7, 365 days a year, in perpetuity. Blockchain is a highly scalable solution that works in real-time, implementing machine learning and artificial intelligence routines that can gather, analyze, and collate data and instantly recommend a course of action, should an outbreak be detected. This instant response capability can represent the difference between quick containment and global contagion. 

Blockchain Monitor Launched to Track Coronavirus-Free Safe Zones to Protect the Non-Infected Community During Pandemic

The coronavirus pandemic has currently reached countless countries and territories all over the world and has caused over 220,000 infections in the world population. With the global death rate climbing and almost reaching 9,000, the World Health Organization declared it as a  pandemic on March 11. 

Many countries have encouraged employers to adopt a work-from-home system, while schools have been closed in many cities in hopes of curbing the spread of the coronavirus. Many countries have also closed their borders and implemented travel restrictions and alerts to slow down the rate of the spread. 

With the alarming rate of new cases, technological advancements have been emerging to help governments to detect new and record new cases. Chinese President Xi Jinping previously suggested that the fight against the new virus has highlighted the need for a better governance mechanism, suggesting blockchain technology should be integrated into the existing system to gain better insights into social circumstances.

The Public Health Blockchain Consortium (PHBC) has announced the launch of a monitoring blockchain aimed to verify communities and workplaces that are free from the coronavirus COVID-19, as well as other high-risk viruses, bacteria, and fungi. The Consortium consists of health authorities, universities, healthcare providers, and innovators who aim to collect and store anonymous health data on the blockchain, to improve the lives of people in the world. The blockchain monitor would help identify safe zones where there have been no confirmed cases of the coronavirus. 

Data would be stored and updated in real-time using blockchain, and the information will be received from surveillance providers who use a combination of technologies including artificial intelligence (AI) and geographical information systems. 

Ayon Hazra, the CEO of Qlikchain, administrator for the PHBC explained, “Communities and workplaces can maintain such safe zone status if they restrict access to anonymously identified persons and only allow movement to and from other safe zones. This method enables communities and workplaces to effectively protect uninfected persons.” 

The method suggests an incentive for communities and workplaces to restrict access and conduct proper testing to keep its status as a safe zone. Hazra mentioned that the individuals and communities from the safe zones would be able to restrict their movement safely according to the information provided by the blockchain monitor. 

The blockchain monitor also tracks the protection certificates offered by the regulatory authorities to workplaces and communities, detecting of an individual in the safe zone who has possibly been in one of the infected areas, a quarantine requirement will be alerted.

With the PHBC virus-free monitoring blockchain being introduced to public health officials in Geneva on February 10, 2020, the impact of the technology will be presented after a year at the PHBC’s 2021 conference.

 

Binance Launches 'Crypto Against COVID' Charity Project To Fight Global Pandemic

On March 25, Binance in its blog post announced the launch of its new fundraising project titled ‘Crypto Against COVID’ which aims to raise $5 million in cryptocurrencies. The funds will be used to buy medical equipment for the countries worst affected by Coronavirus.

“Binance will be leading this effort with an initial donation of $1 million USD, and commits to donating up to $2 million USD through the #CryptoAgainstCOVID social media campaign,” according to the Binance blog.

At the time of the campaign launch the number of confirmed COVID-19 cases had exceeded 300,000 worldwide. The demographics of the virus have expanded across 175 countries and territories with more than 14,750 deaths reported so far. These numbers were reported on March 23, 2020, by WHO.

Some of the worst-hit countries by this deadly Coronavirus are Italy, Spain, China, Germany, the Republic of Korea, Iran, Turkey, the UK, and the USA. And these are the countries where Binance will be spending most of the charity funds to supply medical equipment. The platform has confirmed that they will be posting all the donation transaction details to ensure full transparency.

And this is not the first time when Binance has shown its philanthropic trait. In January 2020, Binance had launched another campaign with the title ‘Binance for Wuhan’ and donated $1.4 million worth of medical supplies to China.

“The crypto community is a growing force and we have an opportunity to strengthen this through philanthropy. We encourage the community to take part in this initiative as we unite against COVID-19, and together, we’ll drive impact,” said Changpeng Zhao, CEO of Binance.

According to the blog post, Binance Charity has delivered 56,800 masks, 366,000 pairs of gloves, 9 sterilizers, 5,280 bottles of hand sanitizers, 7,850 protective suits, 20,000 testing kits, 20,000 pairs of Goggles, 173 barrels of disinfectants and 388 oxygen concentrators.

These medical supplies have been delivered to more than 300 hospitals in China including Hubei, Guangxi, Shanghai, Sichuan, and other Chinese cities. 

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Algorand's Blockchain Based COVID-19 Global Survey Shares Real-Time Public Pandemic Data

Algorand, the first pure proof-of-stake (POS) blockchain created by cryptography pioneer and Turing award winner Silvio Micali, has launched a global Coronavirus (Covid-19) survey.

The company published a blog post on March 27 announcing its ‘IReportCovid’ survey app. The aim of the survey is to compile a public database to share information on the spread, status, and symptoms of the COVID-19 pandemic and give updates in “real-time.”

Global Blockchain database to fight COVID-19

According to Algorand, there is limited data coming directly from the general public about how COVID-19 is affecting them in real time, which could be useful data for studies on the pandemic as well as for public knowledge.

The survey is not invasive and asks for basic information that one would usually find on a doctor’s appointment card, such as age and gender, with the added a section to confirm if the respondent has been exposed, treated or tested for the coronavirus and their  isolation status.

As the responses will be publicly posted on the Algorand blockchain, the information shared cannot be changed or tampered with, only updated by respondents if their situation changes. Algorand is encouraging everyone to take part in the survey, “even if you do not have symptoms and update when changes happen.”

Dr Tal Rabin, Head of Research, Algorand said that the IReport-Covid distinguishes itself from other applications and sources of information on coronavirus through “the combination of anonymous self-reporting and the constant retention of information on the blockchain.” She added, “Very little information is coming directly from the people in the community. I hope more people in the world will respond to the questionnaires in our app so that we can gather meaningful information.

After publishing aggregate statistics in the near future, Algorand plans to introduce tools for the community to build applications leveraging the collected data.

Algorand – First Blockchain to Defeat Trilemma

The blockchain trilemma was a term given to the pain points of trying to establish seamless transactions while maintaining all three critical properties—decentralization, security and scalability—which was originally believed to be impossible.

In an interview with Blockchain.News, Jing Chen, Chief Scientist of Algorand discussed how Algorand has solved the blockchain trilemma with its Byzantine agreement which would make it the first known platform to have all three critical properties optimised. 

Chen said, “The alleged ‘trilemma’ says that among three important properties – decentralization, scalability and security, a public blockchain can hope to achieve just two of them, at most. This is not a mathematically-proven impossibility. Rather, it is used to emphasize the difficulty of achieving all three simultaneously. We believe it’s important for a public chain to achieve all three, and the Algorand blockchain does just that.”

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Nations Around the World Urged to Learn From China in Fighting Coronavirus Using Blockchain

As the number of people contracting coronavirus (COVID-19) continues to rise at an alarming rate has clocked more than 900,000 cases, governments are being pushed to the wall to tackle this pandemic. As reported by the Global Times on April 1, different stakeholders are urging other nations to embrace China’s effective model in fighting this pandemic by deploying blockchain technology.

China’s blockchain-powered solutions

China has been at the forefront of using blockchain technology when tackling COVID-19. For instance, it has been using this technological innovation in tracking down the spread of this disease, handling charitable donations, and storing medical records.

As reported by Blockchain.News on Feb.18, Shanzong, a blockchain-powered donation tracking platform, was established in China to enhance the transparency and efficiency of giving. Shanzong is among the more than 26 blockchain-enabled prevention applications that had been initiated in this nation by the end of February. They were widespread in areas, such as corporate financial services, epidemic prevention, material management, and charitable donation management. 

Notably, the Chinese government has been spearheading the establishment of blockchain-based solutions when it comes to sharing and gathering relevant information pertaining to COVID-19. Additionally, it has been encouraging enterprises to participate. 

Governments in other nations, especially local ones, are being asked to step in and heed the call of utilizing blockchain technology in tackling coronavirus as they rarely participate in such projects. They are being asked to follow in the footsteps of many Chinese local authorities, which have been at the frontline in the establishment of blockchain-enabled anti-pandemic platforms. For example, the Nansha district in Guangdong Province set up an epidemic control and prevention system pegged on blockchain technology in February. 

China’s diminishing number of confirmed infected cases

To lessen the number of people onsite, Beijing-based Market Supervision and Administration Bureau deployed blockchain technology to prompt digital transformation. Some of its functions include regulating food safety.

Blockchain has been instrumental in reducing the number of daily infections in China. 

Source: Worldometer

Recently, Chinese President Xi Jinping emphasized the importance of using blockchain and artificial intelligence in epidemic prevention. 

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First Chinese State-Backed Blockchain Firm "Tainted" the Nation's Image Due to the Export of Faulty COVID-19 Medical Supplies

Tus Data Asset, a blockchain firm based in Beijing, has been banned by the Chinese government from exporting medical supplies to other countries during the coronavirus pandemic. 

As the first blockchain technology-based firm backed by the state capital, the company has been accused of tainting the nation’s image by selling poor-quality products. Controlled by the state-owned Tus Shareholdings, company registration records show Tus Data Asset had changed its business model on March 23, in line with the growing trend to sell medical equipment.

The Ministry of Commerce blacklisted the state-backed firm, according to The Global Times. There has been a surge of overseas buyers who returned their goods, as the products were deemed faulty.

Aibaoda Technology, based in Shenzhen and backed by Taiwanese audiovisual firm Aipo International has also been banned due to the lack of quality of its medical gear. “We started to export masks not long ago… we were not exporting any medical supplies other than masks. We don’t manufacture masks, we just bought masks from somewhere else and exported them,” an Aibaoda spokesman told the South China Morning Post.

The Ministry of Commerce added that the two companies have “distorted the order” of China’s exports. A decision was made last week that all shipments of medical equipment would require a mandatory customs inspection.

Faulty medical gear exported from China

In late March, when the pandemic started to cause an exponential increase in infections and deaths around the world, officials from the Netherlands recalled 600,000 masks that were manufactured in China as they did not meet the standards for filter performance and fit.

Rapid COVID-19 test kits produced by a Chinese company that was exported to Spain were found to be inaccurate, leading to a halt in usage by the Spanish officials. The Czech Republic and Turkey also stated that a number of test kits were faulty, with 80 percent of 300,000 rapid test kits appeared inaccurate.

Despite small setback, China’s blockchain industry is still set to boom

The Chinese central government has put together a national blockchain committee to work on setting industrial standards. The Ministry of Industry and Information Technology (MIIT) issued a notice on April 13 of the “Public Notice on the Formation of a National Blockchain and Distributed Ledger Technology Standardization Technical Committee.”

The committee would be made up of 71 individuals from different backgrounds, including political, industrial, academic, and research organizations. The committee will be chaired by MIIT deputy minister Chen Zhaoxiong, along with five vice-chairs, all of whom are government staff, including Di Gang, the vice-head of the Chinese central bank digital currency institute.

Other committee members include executives from well-known Chinese institutions, including Baidu, Tencent, Huawei, Peking University, Tsinghua University, Fudan University, amongst others. The ministry is also asking for public feedback on the committee members until the deadline of May 12, 2020.

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When the COVID Pandemic Subsides, Will Bitcoin Still be Here?

With everything changing so quickly in the world right now, many Bitcoin investors are rightly asking, will Bitcoin survive the Covid-19 pandemic?With the BTC price moves seen in March 2020, that assumption has been called into question.

Is Bitcoin Really a Safe haven?

Bitcoin was built in reaction to a broken global economic system. It was designed as an alternative to traditional state-controlled financial currencies and markets. That’s why many have thought for the last 10 years that the Bitcoin price would shoot up if the stock market were to crash.

That’s not what happened in February and March of 2020. Almost as soon as the US stock markets started to crash in February, the price of Bitcoin was quick to follow. The Bitcoin price halved from around $10,000 to $5,000 in a matter of weeks, shedding thousands of dollars in just a few days at some points. This proves that the first move of many investors wasn’t to rush to trade their stocks for Bitcoin. It was to trade their Bitcoin for cash.

Bitcoin has never gone through a crisis like this before. Maybe the price was already propped up in a bubble by investors that had no intention of holding the cryptocurrency long term. We just don’t know at this point. All we know is that things will be unpredictable for at least a few more months.

How Deep Will the Crisis Go?

Still, a core problem with Bitcoin is its lack of utility. It seems that many people may be concerned that if this crisis gets too deep, then Bitcoin simply may not be useful enough yet to warrant holding onto.

The stock market has seen its sharpest weekly declines in history. It was the fastest 30% decline ever, even faster than the global financial crisis and the great depression. Entire sections of the global economy have been forcibly shut down overnight. And we could be just at the beginning of all of this.

This has led many to think about the utility of their investments. At the moment cash is king because people know they are going to need liquidity if things get really bad. At the end of the day, you need to buy food, pay employees and the mortgage. Right now, you can’t do any of those things easily with Bitcoin. If the crisis will keep on worsen, this effect could continue. Of course, hopefully, the crisis won’t get too much worse.

Bitcoin Halving

One positive thing for Bitcoin is the halving event coming up soon. In May 2020, the Bitcoin block reward will drop to half of what it is now. This is an important event for Bitcoin, as it means that the supply of new Bitcoins coming into the market will drop by 50%. Simple laws of supply and demand mean that it’s likely to push the price of Bitcoin up over the long term.

Bitcoin halvings have happened before. In the past, they were associated with large increases in the price of Bitcoin over time. This could be a major factor in helping Bitcoin through what’s already been a turbulent time with Covid-19.

Utility is Key

2020 is presenting a unique opportunity for many different technologies. Now, we have more people shut up in their homes than ever, and hundreds of millions of people are forced to work from home too. Technology is going to play a pivotal role in the escalating Covid-19 crisis. Especially when it comes to online collaboration.

Bitcoin and blockchain networks were built for international collaboration. If the blockchain companies and products that have been developing for the last few years can find a way to break into our new, isolated lives, it could push Bitcoin to a new level. It all depends on whether or not people feel that Bitcoin will be an investment they can actually use in their lives.

Bitcoin was created as a Response to a Financial Crisis

It’s important to remember, Bitcoin was created in the wake of the 2007/2008 global financial crisis. As the global financial markets were melting, Bitcoin was rising up into the world. In particular, it was created in response to the out-of-control quantitative easing that was used to fix the clogged financial system. This monetary policy ended up inflating away billions of dollars of regular people’s wealth without their consent.

Amid the Covid-19 economic crisis, the US Federal Reserve has pledged to print however much money it takes to prop up the stock markets. We could see far greater quantitative easing than we have ever seen in history. This will decay the value of people’s savings.

Bitcoin was created as a decentralized asset that was impervious to the centralized financial system. It’s been around for more than a decade now and it has proved it can stand the test of time. Now could be the perfect time for it to step up to the role it was designed to do.

When the Pandemic Subsides

It’s clear that many Bitcoin investors have fled the Bitcoin market in 2020. But it’s possible that once this process stops and the greedy, panic-stricken investors have left, Bitcoin will have a new foundation to be built on.

Rather than just being a quick get-rich scheme for investors, it can return more to its original vision of an alternative, global financial infrastructure. One that’s safe from the meddling hands of central banks. Bitcoin could not only survive the Covid-19 panic but come out even stronger on the other side. In the meantime, we’re in for a wild ride.

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US Congress Considers Using Blockchain for Remote Voting While the White House Urged to Stay Competitive with China

The US Congress is considering using blockchain technology to enable the Senate to conduct remote voting during the ongoing COVID-19 pandemic. 

According to the staff memo, the coronavirus pandemic has caused the shut down of many sectors of the society, the two chambers of Congress have always met in person to conduct business and hearings for deliberation and voting. However, these plans may need to be changed to follow social distancing orders and to protect voters. The report highlighted that the crisis emphasized the need to consider certain functions to proceed remotely when it may not be safe for members to gather in person.

The report explored a combination of different technologies to be used, including blockchain and encrypted E2EE. The core areas that the Senate identified as application areas using blockchain technology were authentication and encryption. Blockchain allows for digital records to be secure while offering high transparency and efficacy. 

Voting enabled by blockchain could allow the process to be conducted remotely while offering a high level of security. “Blockchain can provide a secure and transparent environment for transactions and a tamper-free electronic record of all the votes. It also reduces the risks of incorrect vote tallies,” read the memo.

Mnuchin by 11 members of Congress to use blockchain for COVID-19 stimulus payments

11 members of Congress urged Secretary Steven Mnuchin to consider using blockchain technology to cope with providing COVID-19 stimulus checks to the country’s citizens. The Coronavirus Aid, Relief and Economic Security Act was activated on March 27, to allow eligible individuals to receive payments as of April 17. However, low-income families have struggled with this stimulus as they do not have normal accessibility to basic financial services. 

With guaranteed efficacy and security, the US Treasury was suggested to use blockchain as the technology to deliver money owed to the public. The letter for Secretary Mnuchin also highlighted the urgency to stay competitive with China, urging the White House to take action on the benefits of blockchain, in both the private and public sector. 

Security implications of blockchain voting

Although blockchain offers a favorable solution to remote voting systems, lawmakers have been worried about the security issues of virtual ballots. The report also noted that there are concerns about a 51 percent attack on the blockchain used to host virtual ballots, stating that a proper blockchain infrastructure must be created to eliminate threats of 51 percent attack.

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Infinito And Paxful Partner to Accelerate Cryptocurrency Adoption Across the World

Infinito, a multi-crypto wallet provider, has partnered with Paxful, peer-to-peer Bitcoin platform, with an aim to offer financial inclusion across the world. Such a partnership sets to see Paxful’s web-based Virtual Bitcoin Kiosk integrated on the Infinito wallet platform. From now, Infinito wallet users can directly buy Bitcoin at the best prices from other crypto users around the globe safely without having to pay any transaction fees

The new relationship means that Infinito wallet users can now seamlessly transact with any other crypto users on Paxful.

The strategic integration between Paxful and Infinito unlocks convenient payment methods for Infinito wallet users to purchase Bitcoin with more than 160 fiat currencies such as Canadian dollar (CAD), Chinese yuan, USD, GBP, and many more. Paxful supports the most in-demand payment methods such as online wallets, gift cards, domestic wire transfer, bank transfer, and many more.

To fully optimize and simplify the wallet cryptocurrency purchasing experience, customers are instantly matched with traders who are providing the best price on Paxful’s platform based on the payment method and currency chosen. Purchased funds are efficiently delivered to the buyer’s wallet address, thus removes the extra hassle of transferring funds between different platforms.

The Aim to Democratize Finance

Both Paxful and Infinito aim to penetrate Vietnam, a highly potential market with a fast-growing Bitcoin investor community of more than 6 million people. Paxful aims to expand its reach in Vietnam in terms of increased signups on its platform. In Q1 of 2020, the peer-to-peer marketplace experienced an increase in its customer base in Vietnam by 43%. The rise of signups also led to an increase in peer-to-peer trading volume by 262%.

Jack Nguyen, Infinito director, said that Paxful being the first-ever crypto wallet partner sets to provide an opportunity to have Bitcoin available to the masses in Vietnam and around the globe.   He stated that this would encourage more people to use the leading cryptocurrency.

Ray Youseff, CEO of Paxful, sees the integration as part of the need to offer and create crypto products that provide real-world solutions.

Apart from Vietnam, Paxful is seeking to create an impact on Bitcoin adoption by focusing on markets in Russia and India. The firm also targets boosting its presence in Southeast Asia and Latin America regions.

Amid the global financial crisis caused by the coronavirus epidemic, cryptocurrency and Bitcoin have been gaining significant traction as more people search for different means to diversify their different sources of income. Bitcoin ownership around the world is rising rapidly, and both Paxful and Infinito have experienced a steadily increase in the volumes of cryptocurrency purchases on their platforms, particularly from Vietnamese users.

Infinito and Paxful are now looking forward to attracting more users with a “crypto investment competition” that allows users to experience how cryptocurrency works before investing. Infinito now offers a 3% rebate for all Ethereum purchases done through the Paxful platform.

Making A Difference in Africa

Last week, Paxful launched “Africa Fund” to build its reach in Africa by using Bitcoin donations to enable the continent to overcome the current coronavirus pandemic. The fund aims to use Bitcoin donations to buy essential resources for the fight against the COVID-19 outbreak. The company believes that the world has a lot to learn from Africa about the future of the crypto economy. The firm also believes that the continent has tremendous potential and sees people of Africa as teaching the rest of the world about the true use cases of Bitcoin. According to the company, Africa presents an opportunity for greater financial inclusion of the unbanked and underbanked.

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Billionaires and Bitcoin: Stan Druckenmiller’s Alarming Warning on Stocks While Paul Tudor Jones Remains Bullish on Bitcoin

Billionaire Stanley Druckenmiller said during a webcast held by The Economic Club of New York that the risk-reward calculation for equities is the worst he has ever seen in his career. The billionaire expressed his doubts about the US equities’ possibility of logging a V-shaped recovery. He added that government stimulus programs will not be enough for the economic recovery post-pandemic.

Stan Druckenmiller is one of the world’s top money managers, he was previously the Chief Strategist for George Soros, and later converted his hedge fund into Duquesne Family Office in 2010. With maintaining a strong track record for decades, he has an estimated net worth of $5.8 billion according to the Bloomberg Billionaires Index, and has made him one of the world’s top money managers.  

Druckenmiller’s described the likelihood of the recovery as a “fantasy,” as he highlighted the risk-reward calculation for the Wall Street indexes is currently at its worst. This, in turn, could mean that the US Congress’ stimulus programs and the Federal Reserve’s lending programs may not be enough for saving stocks from a bear market.

Bitcoin has been struggling to push through to $9,000, as the billionaire’s prediction could set back the cryptocurrency’s ability to continue its rally. As Reuters reported in late April, more appealing to investors more than equities due to its higher risk-reward calculations. Druckenmiller’s prediction projects Bitcoin’s market capitalization could be at risk of similar downsizing as the stock market, given its correlation with the S&P 500 seen in the last few months. 

Druckenmiller believes that cash liquidity required to pump assets that are considered risky will shrink shortly as the US Treasury will soon end the private economy which could overwhelm the Fed purchases through borrowing consistently. 

Billionaire talks Bitcoin: Paul Tudor Jones’ The Great Monetary Inflation

Druckenmiller’s comments come not long after another billionaire, Paul Tudor Jones admitted to investing in Bitcoin to hedge against inflation. As another of Wall Street’s most seasoned and successful hedge fund managers, Jones compared Bitcoin to gold by saying that the digital currency reminds him of the role that gold played in the 1970s.

Jones said in an investor letter, called The Great Monetary Inflation, “The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.” As money-printing will push traditional investors to gold, he believes that the world will then “crave new safe assets,” which may be beneficial to Bitcoin. He stated that Bitcoin represented at least 1 to 2% of his total assets in an interview with CNBC.

 

Image source: CNBC

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