Different people react differently to current conditions in Bitcoin and the global economies. Two consecutive quarters of negative US GDP have resulted in a Fed rate rise. Although many people are still claiming that there has not been inflation yet, the impact of it is beginning to show.
Jenny Johnson (President and CEO at Franklin Templeton) has shared her views on current economic conditions. Johnson said that although the world is currently in an unfortunate financial state, Bitcoin continues to be its greatest distraction.
In a recent interview, Johnson shared her views. Johnson mentioned how the current economic environment is causing disruption.
In her terms, it’s the best to happen to financial providers at the moment. Johnson views Bitcoin differently. While many see it as digital gold that could be used to create an inflation hedge, Johnson is a more skeptical. To her, BTC is just consumers’ distraction from all prevailing financial problems.
The CEO also stated that she does not believe governments can make Bitcoin an important asset in foreign currency exchange. As many arguments as possible would ensue, she said it was unlikely that such a thing could happen.
Blockchain technology is an area where the CEO has many options. The CEO called it “the sports revolution”, claiming that blockchain technology will make an impact on all sectors.
Johnson said that Franklin Templeton offers its clients cryptocurrency services. The company does not plan to discontinue such services. Franklin Templeton, an American multinational holding company is one of its subsidiaries. There are many subsidiaries. It is an international investment company that was started in New York City, in 1947.
Bitcoin gained momentum despite global destructive outplay
The spread of COVID-19 has had devastating effects on the global system over the last few years. It remained as one of the most devastating pandemics in history, claiming millions from many countries.
There was a disruption in all aspects of human life due to the effects of the pandemic, particularly social. It was a significant impact on financial systems.
Some countries’ central banks printed more fiat currency to keep the economy float in the face of crisis. This process, however has a negative effect on the economy after just two years. Globally, we are seeing an increase in inflation rates due to other factors.
The West, led by the US, has placed blame on Russia and Vladimir Putin. They also cut off all financial links with Russia.
Russia also holds the title of the most sanctioned countries globally. Russia decided to retaliate by stopping gas delivery to certain European states.
The majority of these states don’t have an alternate source of electricity and find themselves stranded. In turn, this action led to an increase of electricity prices and a rise in the price of all goods. All of this is leading to more destruction.
Featured Image from Pixabay. Chart by TradingView.com