When Bitcoin recently rallied to an all-time high of $69K, many analysts stated that it was due to increased inflation fears, as the asset was a good tool to hedge against inflation. One of the investors using Bitcoin for this purpose is Jordan Peterson, a popular YouTuber and clinical psychologist. After conducting an interview with Dr Saifedean Ammous, Peterson noted that he had learnt a lot about Bitcoin and increased his holdings.
Bitcoin is the ideal tool against inflation
During the interview, Ammous touched on how Bitcoin is a strong financial asset that can hedge against inflation. He noted that Bitcoin was the “most powerful” technology that could be used to battle inflation.
“It’s an enormous quantum leap forward in the technology of money as protection of value against predation and inflation. I think it’s a natural fit to anybody who is productive and wants to save their value into the future,” he noted.
Ammous is the author of “The Bitcoin Standard,” and he stated that the use of Bitcoin would be good in countries dealing with cases of hyperinflation. Such countries were battling with a rapidly deteriorating value of their fiat currency, and with Bitcoin, they would have a way of maintaining the value of their wealth.
Ammous also noted that the details of the creator of Bitcoin should not be an issue because it helped to push the agenda of decentralization. Moreover, he noted that many inventions had happened before, and people still believed in them and that Bitcoin should not be any different.
Bitcoin is deflationary
Recently, analysts with Bloomberg noted that Bitcoin had achieved a 99.996% deflationary value over the past decade. The analysts further noted that the CPI of Bitcoin had increased by 28% during the same time, which made Bitcoin a strong hedge against inflation.
The use of Bitcoin as an inflation hedge is also attracting billionaire investors. American investor Barry Sternlicht stated that he had personal investments in Bitcoin, stating that the digital asset was a better store of wealth than the mass printing of fiat currencies.
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