Although we are just months into the ongoing COVID-19 recession, it has purportedly shown clear structural issues in some of societys largest institutions.
One such entity purportedly under threat is the European Union, and, by extension, the Euro.
The collapse of this multinational organization and its native currency would undoubtedly throw the world of finance and politics into chaos. Bitcoin, too, would be affected — and heres how.
Euro is teetering on collapse: prominent macroeconomic analysts
According to Remi Tetot, co-founder of macroeconomic research firm Global Macro Investor, there is a good chance the Euro [will] go bust in the near future.
The case made for this assertion was extensive, but it came down to the fact that the European Union is proposing a massive stimulus package to save the economy from COVID-19, is printing hundreds of billions through the European Central Bank, and is on the verge of breaking below an all-time technical support.
Tetots colleague Raoul Pal is equally as bearish on the Euro, if not more so.
The former Goldman Sachs executive said in a video posted to financial media outlet Real Vision, which he runs, that he thinks that the E.U. (and the Euro) is an experiment that is looking ready to collapse.
Pal cited the fact that due to the ongoing recession, there will be member nations that will struggle with intense fiscal and monetary difficulties as COVID-19 affects each Eurozone economy differently.
Normally, other Eurozone countries would step in to help (like how Germany helped Greece last decade), but there have been increasing tensions between member nations. The Wall Street veteran suggested that these tensions and discourse could contribute to the dissolution of the Union.
How will Bitcoin react?
According to Travis Kling — CIO of Ikigai Asset Management and an ex-