With inflation at an all-time high and running rampant like never before, it appears crypto at least has some sort of voice regardless of how thin or quiet it might be.
Inflation Is Getting Worse and Worse
Inflation has gone crazy under incompetent leaders like Joe Biden. As a result, fiat currencies all over the world from USD to the euro to the pound have suffered greatly, and the Fed has been forced into a position of continually having to hike rates. This has led to subsequent falls in crypto prices as they have failed to prove themselves as legitimate hedges against inflation.
Bitcoin, for example, was trading at a whopping $68,000 per unit last November, though now, roughly 11 months later, the currency has lost more than 70 percent of its overall value, and the crypto space has shed $2 trillion in valuation. What appeared to be a solid, growing financial landscape is now wobbling and teetering like a one-year-old child learning to walk.
But according to several crypto billionaires, the case for crypto is getting stronger each day as inflation rises. Many individuals claim that with fiat currencies failing so badly and governments around the world continuing to print money as though it grows on trees thus causing its value to fall even more, traders and investors should consider putting more of their money into assets like BTC and related forms of crypto which are immune to such practices.
Bitcoin is a finite currency. There are only 21 million units in existence, and once they’re all mined, the show’s over. No more will be added to circulation. This makes it so bitcoin retains some level of value given it is likely to become rarer in the future. Mike Novogratz – the CEO of hedge fund Galaxy Digital – commented:
The case for $BTC is playing out every day. With poor stewardship of an economy, confidence finally breaks, and then the local currency gets sold off hard. Look at Turkey, Argentina, and now GBP. The $$ is king right now as [Fed chair Jerome] Powell [is] doing what a CB [central bank] should do and $ is perceived as [the] safest place.
He continued with:
But our deficit is huge, and higher rates to stop inflation will only grow that debt mound. While I pray our stewards in D.C. act responsibly, I fear politics being politics. Populism on both sides [is] growing. Hard to see things not breaking longer term.
How Far Has Bitcoin Fallen?
Sam Bankman-Fried – the CEO and head of popular digital currency exchange FTX – also chimed in regarding the present conditions. He said:
Boy would the world be thinking differently about crypto price moves if they measured it vs. world currency baskets instead of just USD.
At the time of writing, the price of bitcoin has fallen below $19K.
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