Bloomberg analyst says Bitcoin May Be The Best Inflation Hedge
Amid an ongoing debate on the rising inflation, Bloomberg’s report is indicating that people are moving toward Bitcoin because of fear.
In the present time, the debate on global economic inflation is at a tremendous level. Almost all the analysts and experts are sharing their stance on the increasing inflation that is causing a big fear in professional investors. In recent weeks, Twitter’s Jack Dorsey, Microstrategy CEO Michael Saylor, and all other high profile personalities shared their stance in this matter.
On 11 November, BNN Bloomberg published a report on the rising inflation. The report was prepared by the analyst John Authors.
According to John, in the last 10 years, Bitcoin gained 99.996% deflation. And the cost of one Bitcoin is equal to 0.004% over the current cost of one Bitcoin. But in the same interval of time, CPI has risen 28% in Dollar.
Last year CPI rose by 6.2% and it was the first high rise since 1990. And if we will take reference since 1980’s measure for CPI, inflation has increased by around 15%.
Bloomberg’s analyst believes that around half of the cost of Bitcoin surge is because of the rising inflation fear. People are buying Bitcoin and bitcoin-like assets to save themself from inflation. However, another half cost of Bitcoin is only a part of increasing trading momentum.
“Our model shows that for Bitcoin, the importance of inflation and hedging against uncertainty become more important drivers over time, accounting for 50% of price moves in the latest cycle relative to 20% in 2017,” said Björn van Roye and Tom Orlik”
Michael Saylor on Inflation
Recently, Micheal Saylor, CEO of Microstrategy, shared his stance on gold, Bitcoin, stocks and described all these hedges against inflation.
Michael said that the price of flagship assets will increase continuously because of limited supply. On the other hand, we can expect only a rise in inflation in the fiat. So obviously all these flagship assets’ prices will increase with volatility in the price.
Read also: RippleNet will provide digital bridge between Pakistan and UAE
