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Bitcoin buyers need to be clear about the fact that volatility is here to stay. BTC has been consistently considered to be a hedge against inflation by its believers.
However, Forbes in the past month published that Bank of American stated, “Bitcoin has not been compelling as an inflation hedge as commodities and even equities provide better correlations to inflation.”
Further it has also been stated that Holding Bitcoin might not help diversification, declining volatility, or inflation protection, but rather it is all to benefit from sheer price appreciation.
Different investors have different opinions. Some investors are willing to hold BTC forever as they consider it to be generational wealth.
Billionaire Investors like Paul Tudor Jones feels that BTC is a better hedge against inflation when compared to gold. They also believe that BTC is a great way to protect one’s wealth in the long run. Thus, Not denying that BTC is a Store of Wealth like gold.
Investment firms like JP Morgan in the past stated, “institutional investors appear to be returning to Bitcoin, seeing it as a better inflation hedge than gold.”
The JP Morgan report also cited assurances by regulators and policy makers that they would not execute an absolute ban.
While there is not sufficient evidence that BTC or other cryptocurrencies work as a hedge against inflation we are in the beginning stages and it is a reasonable expectation though not a guarantee.
Not all are going to believe things as said by influencers. They are going to come up with their own share of opinions.
Peter Schiff shared: Last year people bought Bitcoin speculating that investors would buy it as a hedge against inflation. But this year, as investors are finally starting to worry about inflation, they’re buying gold and silver instead of Bitcoin. Those who bet on Bitcoin picked the wrong horse!
Community Response to Peter Schiff: You know silver lost its status as a monetary metal a long time ago, right? It’s a horrible inflation hedge.
No, I don’t know that as it’s not true. It may have lost that status with you, but not with the vast majority of people. Plus, you will eventually come around, but by then, the price of Bitcoin will equal its value, zero.
You can’t just unilaterally declare something to have a value of zero. It’s like you have a God complex. Regarding silver, the issue is that it’s relatively easy to produce more of Bitcoin as a much higher stock-to-flow ratio (and it’s only increasing).
You unilaterally declared Bitcoin has value when it objectively does not. I accept that it has a price, as other people are making the same foolish mistake that you are in ascribing value where none exists. Meanwhile, you are missing out on huge gains today in mining stocks.
Peter Schiff literally why are you not minting gold coins with bitcoin private keys engraved in them so that the #bitcoin can have “physical backing” & “intrinsic value” – it would troll Bitcoin hard, but I’m sure at least Peter McCormack would buy one.
You can claim to have sold the only Bitcoin with real, physical, intrinsic value backed by everyone’s favorite shiny yellow rock.
Gold only goes up, when the dollar goes down. The likelihood of gold doubling this year is low. The likelihood of Bitcoin doubling is a near certainty. Eventually, gold will be a smarter option, but when it is entirely at the mercy of The Fed. Bitcoin will double regardless.
Heard all last year, how BTC was going over 100k by end of the year. Max Keiser kept saying 220k by end of 2021. People saying it’s going to double, or acting like they know at all, is laughable. Mainly people invested in it and trying to pump it.
There are 100 million or so Bitcoin Holders on Earth. That’s 1.25% of the people. There are >6 billion people with a smartphone. Bitcoin is finite and is far from crashing (which I believe is inevitable) Interest will grow, especially during 2022.
