tl;dr
Bitcoin advocate Max Keiser predicts that companies like MicroStrategy are exploiting weaknesses in the U.S. financial system by using cheap borrowed dollars to buy Bitcoin, creating a "speculative attack" on the dollar. This is enabled by low interest rates maintained through central bank policies....
Bitcoin advocate Max Keiser predicts that companies like MicroStrategy are exploiting weaknesses in the U.S. financial system by borrowing cheaply to acquire Bitcoin, effectively launching a speculative attack on the dollar. This dynamic is enabled by central bank policies that keep interest rates artificially low, allowing firms to borrow at a discount and invest heavily in Bitcoin.
Keiser warns that this trend is placing significant stress on the bond market. As capital shifts away from bonds toward Bitcoin, the bond market faces the risk of collapse, potentially causing bond prices to plummet and yields to spike by 50% or more. Such a rise in borrowing costs could destabilize the entire financial system.
The Bitcoin evangelist envisions a future reset where the U.S. dollar loses its function as a currency. In this scenario, dollar-backed stablecoins might persist but only as reference points without sovereign backing or central bank support. Meanwhile, companies holding large Bitcoin reserves, like MicroStrategy, would benefit notably from this upheaval.
Keiser also cites estimates from MicroStrategy’s Michael Saylor that real inflation—including asset prices—is around 15%, yet interest rates remain suppressed to protect banks from losses. This creates a systemic imbalance where companies lock in long-term value through Bitcoin acquisitions while the dollar they borrowed continues to weaken.
In sum, Keiser’s perspective highlights a growing financial tension: the bond market under strain, the dollar potentially losing its currency role, and Bitcoin-centric companies positioned to capitalize on this transformational shift in the financial landscape.