Not gold, Bitcoin is number 1 in 2022
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, offers a fresh take on the future of Bitcoin (BTC) under current conditions.
With confidence in BTC coming from the most recent global financial crisis, McGlone argues that inflation will make BTC more “mature” as an asset class, even beating gold in terms of returns. profits for investors.
“Given the decisions of the Federal Reserve, inflation and war, 2022 is likely to be a golden age for ‘defensive’ assets, while also marking an important milestone in the process. development of BTC”, quoted this Bloomberg expert’s Twitter post.
The forecast was made after the Fed’s statement showed that the agency may continue to raise interest rates in the near future.
“The Committee’s assessments will consider information across a range of areas, including the health situation, the labor market, inflationary pressures, as well as projections, financial developments and international relations.” The Fed hints at future policy changes.
Can BTC hit the $1 million mark?
Farther than McGlone’s forecast, Arthur Hayes, former CEO of derivatives exchange BitMEX, also made his comments on global financial markets in his latest Medium post.
The Russia-Ukraine conflict, in addition to adding to inflationary pressures, is also a symbolic event that shows how easily a central bank’s foreign currency assets can be expropriated. And this leads to changes in the financial system in the coming time.
“You cannot remove the world’s largest energy producer, nor the collateral associated with this commodity resource, from the financial system without potentially catastrophic consequences, and unpredictable,” he explained.
Accordingly, the financial system will face a restructuring and assets such as BTC, stocks and commodities will experience a severe decline.
“If you are not willing to witness this stage then just close your eyes, hit the buy button and then focus on taking care of your family’s safety. A few years later, when the war is over, hard-money instruments will dominate all global commerce,” Hayes wrote.
Ultimately, BTC and gold will both likely take on a more important role as a store of value as governments reduce their reliance on the dollar and euro.
In that case, which is forecasted to “happens in the next decade,” gold could be worth 5 digits (tens of thousands of dollars per ounce), while with Bitcoin it is 7 digits (millions of dollars per BTC). .
“In the coming years, global trade will be settled through neutral hard currency instruments rather than Western fiat-backed debt,” concluded Hayes.
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