Inflation was already high due to Quantitative Easing but now with the war is going to get a lot worse. Not protecting your wealth by acquiring inflation-proof assets is financial suicide.
Acording to the latest figures CPI inflation is 7.9% but we all know that’s a lie:
Crude Oil: +71% Natural Gas: +72% Uranium: +95% Wheat: +71% Lumber: +37% Coffee: +74% Oat: +66% Corn: +40% Nickel: +201% Tin: +175% Milk: +37% Cotton: +33%
Despite these figures, trillions of dollars are kept in cash or cash equivalents by companies, individuals, and states. Just one company (Apple) holds $200 Billion in dollars. To me, that’s crazy, why would anyone choose to lose so much money due to the debasement of the currency?
However, this is starting to change and soon all this cash will look for safe heavens which are basically commodities, real estate, gold, and bitcoin.
Regulations are coming for sure, in fact, yesterday Biden made public the Executive order on crypto, but this is in fact good for the market. Now, all those institutions that were unsure about this new asset class got the reassurance they needed to start investing.
Crypto is a new technology just like the internet in the 90s, most companies joined in late and many went bankrupt because of their lack of vision. The bitcoin pioneers are MicroStrategy, tesla, grayscale, BlackRock, Fidelity, and the like, they have already invested billions. The second wave is coming now with banks and other financial institutions. JP Morgan, Goldman Sachs, Morgan&Stanley, wells Fargo, etc are offering crypto assets to their clients already.
Why would you change your dollars for bitcoin? Several reasons. Bitcoin is decentralized, censorship-resistant, non-confiscable, and with a limited supply. The dollar is none of that, that’s why 1 BTC is worth $40,000 today and will most probably go much higher than that.
Besides, the dollar, as you know it, is doomed. CBDCs are coming and the greenback will be replaced by digital currency (although of the worst kind) This is yet another reason to put part of your wealth in the bitcoin network.
It takes time to change your mind, money is a complex subject and Bitcoin is even harder to grasp. We’ve all been there. I challenge you to find an expert that has studied bitcoin in-depth and doesn’t agree with its principles. I’ve been searching for years and have failed to find one. Even Ray Dalio is pro-bitcoin now.