My personal thought is ultimately you still probably need US dollars to pay your rent, buy meat at Costco etc. But once Amazon finally starts accepting bitcoin and cryptocurrency for online purchases, bitcoin and crypto will be gangbusters.
What is also interesting is that because bitcoin has a hard cap, 21, million bitcoins… at least the notion is you cannot print more.
Price of Bitcoin in 30 years?
Thought:
At least $1 million dollars USD a Bitcoin.
The view of Bitcoin as a hedge against inflation is a subject of ongoing debate and depends on one’s perspective on the nature and future of both Bitcoin and traditional financial systems.
Arguments for Bitcoin as a Hedge Against Inflation:
- Limited Supply: Bitcoin has a capped supply of 21 million coins, which contrasts with fiat currencies that can be printed unlimitedly, potentially leading to inflation.
- Decentralization: Unlike fiat currencies, which are controlled by central banks and governments, Bitcoin operates on a decentralized network, making it less susceptible to government-induced inflation.
- Global Asset: Bitcoin is not tied to the economic conditions of any single country, potentially providing a buffer against country-specific inflation.
Arguments Against Bitcoin as a Hedge Against Inflation:
- Volatility: Bitcoin’s price is highly volatile, which can undermine its reliability as a store of value during inflationary periods.
- Unproven Track Record: Bitcoin is relatively new and lacks a long history during varied economic conditions, unlike traditional inflation hedges like gold.
- Regulatory Uncertainty: The potential for increased regulation of cryptocurrencies could affect their value and acceptance, impacting their role as an inflation hedge.
Ultimately, whether Bitcoin is an effective hedge against inflation is subjective and depends on individual beliefs about the stability and future of the cryptocurrency market compared to traditional financial systems. It’s also influenced by broader perspectives on economic and monetary policy. As with any investment, the risk tolerance and investment horizon of the individual play a crucial role in this consideration.