Jeff Park, Head of Alpha Strategies at Bitwise, which manages the fourth-largest spot Bitcoin ETF in the US with assets totaling $2.039 billion, recently shared an optimistic Bitcoin forecast via X. Park’s analysis links historical economic decisions with current global financial conditions, which he believes create a powerful environment for Bitcoin.
Japan’s Potential Gains from Bitcoin
Park contrasts the 2024 economic downturn with those of 2008 and 2020, noting that while past downturns had identifiable causes or were due to extraordinary circumstances, the current situation is shaped by intricate international dynamics, especially influenced by Japan’s economic policies. He explains, “The current 2024 downturn seems to be driven by Japan, which, from a US perspective, necessitates international cooperation alongside Japan’s domestic economic goals.”
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He delves into the historical context of the 1985 Plaza Accord, an important yet often overlooked event that altered global economic leadership by devaluing the dollar to slow Japan’s economic rise. Park points out, “Contrary to the Western myth, Japan didn’t enter its ‘lost decades’ of stagnation by chance.” He describes the accord as a strategic move by the US to retain economic dominance, which led to Japan’s prolonged economic stagnation and the initiation of the Carry Trade.
Park critiques the Federal Reserve’s current strategy, arguing that it’s not solely focused on domestic issues like unemployment and inflation but is also deeply connected to global economic conditions. He contends, “The US cannot simply cut rates without impacting the rest of the world. It has significant effects on countries like Japan.”
The researcher further criticizes the modern financial system, which he believes has been marked by decades of “artificial suppression and exploitation,” particularly affecting Japan and younger generations. He states, “This issue goes to the heart of the modern financial system, with thirty years of artificial suppression and exploitation—from the youth, from the asset-poor, and notably from Japan.”
Despite these criticisms, Park views Bitcoin as a crucial tool for financial inclusion. He notes that while much of the focus is on emerging markets like Argentina and India, developed countries like Japan could also benefit greatly from Bitcoin.
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Park argues that Bitcoin offers Japan a chance to decouple its monetary policy from the influence of the US dollar, helping to address its leadership and demographic challenges. He concludes with a long-term bullish outlook on Bitcoin, predicting a significant revaluation in light of the current financial crisis.
He elaborates, “Not today, and probably not tomorrow, but sooner than I initially anticipated in my lifetime. This financial crisis is profound and global, with generational and geopolitical implications. Even without a total global collapse, the narrative around Bitcoin will emerge, and once the selling pressure subsides, Bitcoin will rise from the ashes as the most remarkable entity the modern financial world has ever seen.”
Cre: Bitcoinist
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
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