Keith Gilabert of Fina V Capital says, “Bitcoin could rise significantly as currencies around the world and oil prices continue to weaken. Bitcoin is the new alternative to gold.”
Beverly Hills, CA -- (SBWIRE) -- 12/22/2014 -- Over the course of 2014, the S&P 500 is up about 8.5% while the rest of the world markets are down to flat. Further adding pressure to the Global economy is crude oil prices dropping near their May 2009 low of $55.02.
The President of Fina V Capital Keith Gilabert stated, "I expect to see hedge funds moving into Bitcoin first since they are the most fluid and proactive investors."
Gilabert states, "Bitcoin has become an alternative to gold and the U.S. dollar around the world. The biggest advantage Bitcoin has is the largest exchanges are backed by the U.S. dollar and you can trade in Bitcoin for with very little fees. We have seen the dollar surge against the Rupee and the Ruble as investors flee for safety."
The rupee posted a new 10 month low against the dollar as domestic data showed an unexpected contraction in industrial output.
Russia's ruple dropped 10.5% against the dollar, its largest drop in six weeks.
High profile investor Carl Icahn was asked about high-yield corporate debt and stated, "are still at way too low an interest rate. In other words you can borrow money too cheaply if you're a risky company."
"Bitcoin continues to develop and currently it is still a volatile trading instrument with risk, but I do expect the volatility to decline as more consumers and businesses accept the currency. Bitcoin offers a standard protocol for currency and stored value, the blockchain platform makes Bitcoin safer than a credit card or even a bank," according to Gilabert.
Fina VC reports the current environment for Bitcoin is positive due to the currency crisis in Russia and India. The current oil glut caused by over production and decreased demand also adds downward pressure to currencies and sovereign debt. A persistently low oil price could affect several countries ability to maintain domestic infrastructure. If a country cannot pay its debt then the currency will lose value and the citizens will need a safe an alternative currency as a safe haven. Countries that will most likely be forced to cut spending are Russia, Iran, Iraq and Nigeria. "These countries all need oil to trade above $100 a barrel to meet obligations, if the obligations aren't met then we will see defaults and high interest rates which will devalue the local currency," according to Gilabert
According to Eric Lascalles, of RBC Global Asset Management the wreckage particularly for oil-services companies, may add up to a $1.6 trillion annual loss, at oil's current low of $57.
Gilabert states, "the negative momentum will be very difficult for oil to reverse and this will cause more pressure globally. The U.S. is not immune to this global crisis but its economy is more diversified and because the dollar is currently backing Bitcoin, this digital currency will be stable and it will cost less for an individual to trade in and out of."
All trades include substantial risk of loss. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether a trade is suitable you should consult with your financial advisor or broker. Fina V Capital does not offer trading advice on securities and should note that trading instruments mentioned are published based on what we find of financial interest to the public.
THEREFORE, NO RESPONSIBILITY IS ASSUMED WITH RESPECT TO ANY SUCH STATEMENT, NOR WITH RESPECT TO ANY EXPRESSION OF OPINION HEREIN CONTAINED
About Fina V Capital
Fina V Capital serves entrepreneurs by providing less dilutive, more flexible forms of capital. We provide senior and subordinated term loans in the $1 million to $20 million range to emerging businesses backed by venture capital and private equity firms. Target clients range from emerging growth companies led by dedicated entrepreneurs to late-state, established companies seeking cash-flow for expansion. We give our clients access to our contacts of Fortune 500 companies which will add diversity to their product lines and help fuel growth. There are less than a dozen consulting firms worldwide that can offer this level of service.
Website Url: http://www.finavc.com
Contact info: Michael Harkeson
Address: 8484 Wilshire Blvd. Ste, 515
Phone Number: 323-370-6234
Categories: Business, marketing, finance
Keywords: Keith Gilabert, oil, Bitcoin, Fina V Capital, emerging growth
City/State: Beverly Hills, California