Why is this Distressing News from Deutsche Bank a Good Signal for Bitcoin?

bitcoin deutsche bank
Image Source: Shutterstock

On Sunday, Deutsche Bank announced that it would soon make significant cutbacks to its investment bank unit. Reportedly, about 20000 employees could lose their jobs in their process. On Friday, 5th July, the head of Investment Banking, Garth Ritchie, also announced his departure from the firm.

New York and London offices of the largest Germany’s business Bank is expected to experience the majority of the cut-backs.

The current economic situation is upsetting. Europe is facing significant scale problems. Nevertheless, a distressing economy could be a good signal for unrelated assets like Bitcoin and Gold. Anthony Pompliano, the founder of Morgan Creek Digital and a popular crypto-influencer tweeted,

Deutsche Bank plans to fire almost 20,000 employees. Bitcoin has no employees to fire. DB is built for the old world. And Bitcoin is built for the new world.

In most cases, correlation does not mean causation. Nevertheless, the declining currencies of China, the US, the UK, and high inflation characteristics in countries like Turkey, Brazil, and Venezuela is perceived to have a positive effect on Bitcoin.

Also Read: Nouriel Roubini Threatens to Sue BitMEX CEO Over Censoring the Debate Tapes

Moreover, the economic meltdown which could be dubbed as heresy spread by Bitcoin investors, even critics of Bitcoin like Nouriel Roubini has indicated about the adverse financial condition of the world. Mati Greenspan, Senior Market Analyst at eToro also tweeted about the Deutsche bank cutbacks,

The old financial system is dying a slow death. ☠️⚰️ Let’s hope the new one is brighter. 🌞🌈

The low-interest rates from the Central Banks are causing the investment banks reduced profitability. Mati cited that the return at investments is currently <2%. Moreover, while this hardy has a direct correlation with Bitcoin’s positive growth directly, the failure of this economic system could lead to a possibility where Bitcoin’s protocol and limited supply will limit the role of the banks.

Leading Bitcoin proponents, VanEck CEO, Gabour Gurbacs and Whalepanda also commented on the news.

Also Read: How Cryptocurrency Fits into the Currency War Signaled by Donald Trump?

Furthermore, Christine Lagarde, the former IMF chief who has now been appointed as the leader of the European Central Bank (ECB) had also suggested how cryptocurrency is shaking the world economy. She emphasized that the cryptocurrency is attempting to transform the digital the global banking system and not in an adverse way.

Advertisements

About Howard Mahere

I'm a Bitcoin/Cryptocurrency enthusiast ; motivator; author of "AN IMMIGRANT WITH A PLAN" and a John C Maxwell certified speaker . Happily married to Emely and a father to one son and two daughters. My greatest joy comes from inspiring others to maximize their potential. I feel fulfilled when I bring hope to the hopeless and encouragement to the discouraged. The truth is, we each have a past, and it's either our prison, our excuse OR our springboard to a brighter future. The choice is yours but as for me, I made up my mind a long time ago to use my dysfunctional tough childhood as a stepping stone . The late Zig Ziglar used to say "It's not what happens to you that determines how far you will go in life, it is how you handle what happens to you." This is my story and I am sticking to it!
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s