Bitcoin as the greatest opportunity of all time? Marc Friedrich in an interview

Marc Friedrich has written a new book. It is (again) about inflation, central bank policy and the biggest financial accident that can be assumed. But there is also a (digital) silver lining on the horizon. We asked the bestselling author about the “greatest opportunity of all time”.

Crises as important catalysts for human progress? At least that’s what bestselling author Marc Friedrich writes in his new book “The Greatest Opportunity of All Times”. The “greatest crash of all time” rumored in his predecessor does not necessarily have to be to the detriment of resourceful investors, says Friedrich and explains to BTC-ECHO what investors have to do in order to shine as a crisis winner. But one after anonther.

Inflation, low interest rates and, on top of that, a never-ending corona crisis have the (financial) world firmly under control. What threatens is a mountain of debt from which there is no long-term way out, writes Marc Friedrich in his book to be published on April 20, which BTC-ECHO has exclusively in advance. Central banks have their hands tied in the current market environment: it is not possible to raise interest rates. That would bring the multitude of so-called zombie companies to the brink of collapse. Because, according to Friedrich, many German companies can only refinance themselves with ultra-cheap loans – with higher interest rates from the central banks, there is a risk of bankruptcy. One also speaks of the zombification of the economy. But the “creative destruction” is not wanted politically. After all, the consequence of corporate bankruptcies is unemployment. So you push the problem further and further – and thereby increase it in the long run. So Friedrich says in an interview with BTC-ECHO:

The next few years will tell whether we will continue to have prosperity or whether we will see an aggravation and then rise like a phoenix from the ashes. I fear the economy will go down before it goes up again.

Marc Friedrich

But Marc Friedrich wouldn’t be Marc Friedrich if he didn’t derive a unique opportunity for smart readers from the impending collapse. The author, who is also an honorary advisor, describes the current market environment as “the largest transfer of wealth in human history”. You just have to do it skillfully.

The portfolio of the crisis winners

“Crisis winner” is a loaded term. It does not imply any crisis guilt, but at least a certain satisfaction in the suffering of others, according to the motto “I told you so”. But it is clear, and Friedrich also argues, that citizens have to show personal responsibility in the current market environment. Neither the classic 40/60 portfolio of 40 percent stocks and 60 percent bonds nor conservative investments such as Riester pensions or fixed-term deposits can protect private investors from the outflow of assets. You have to bring in heavier artillery. But “in every crisis there is also an opportunity,” says Friedrich.

It’s no secret that the bestselling author is a big fan of real assets: gold, silver, platinum or even whiskey belong in the portfolio of the winners. But a new asset class stands out more than ever: We’re talking about Bitcoin, of course.

We’re seeing the greatest wealth transfer in history. We observe that unlimited money is being printed. Therefore, in the next few years you will need a kind of life insurance with naturally limited assets in order to protect your purchasing power. Gold and silver are typically suitable – but recently also Bitcoin. Those who set the right course here have the opportunity to create wealth for generations.

Marc Friedrich

Bitcoin: the fastest horse in the stable

Financial independence through BTC? Sounds too good to be true. But Friedrich understood the potential of the cryptocurrency. If BTC is superior to all other assets anyway, why not “all-in”? Friedrich urges caution towards BTC-ECHO:

I am always against lump risk and a friend of a well-structured, diversified portfolio. In the new book, however, I overweighted Bitcoin because I believe that Bitcoin is the fastest horse in the stable and will outperform everything. Even so, wagering everything on one card is a bad idea – just like in the casino, spread makes sense. In the end there are always risks.

Friedrich also names these risks more precisely. A possible regulation to the disadvantage of Bitcoin cannot be ruled out. Taxation could also make life more difficult for BTC in the future.

Nevertheless, the author is bullish: If you are brave now, so Friedrich, you will be “the big winner” in the future.

“The euro is in hyperinflation mode”

The reason for the focus on mathematically (digital gold) and physically (precious metals) limited assets is a rising inflation expectation. Officially, this is only 0.5 – 1 percent. But Marc Friedrich has little faith in the official figures. In the interview he said:

If you really calculate inflation, you have to find that it has been 13.7 percent over the past few years. And compared to Bitcoin, the euro has long been in hyperinflation and has lost over 99 percent of its purchasing power.

It is correct that the consumer price index, which serves as the basis for the calculation of inflation by the Federal Statistical Office, does not take asset price inflation into account. In other words: all-time highs on the stock markets speak less of a booming economy and more of a bubble triggered by excess liquidity in the market, i.e. inflation.

All of that is bullish for Bitcoin. The author, who experienced the hyperinflation in Argentina at the beginning of the noughties, correctly sees BTC exceeding the six-figure mark this year.

In December of this year, Friedrich sees the Bitcoin exchange rate “only” at 40,000 US dollars.

I’m Swabian and I try to surprise upwards rather than disappoint downwards. But I believe that before that we will rise well above the USD 100,000 mark. By the end of the year, however, we should see a larger but healthy correction. Bitcoin is the safe haven and a finger on the system.

Marc Friedrich

“The greatest opportunity ever”Will be published on April 20, 2021 by Finanzbuchverlag.