- There is only one hard asset on the planet, and that is Bitcoin (BTC), he expresses.
- The crowned crypto asset is currently trading at $40,490 and is up by around 5% in the last twenty-four hours.
According to a renowned crypto analyst, Bitcoin (BTC) is becoming a better hedge compared to Gold and real estate.
In a recent discussion on the YouTube channel of Benjamin Cowen, the host of InvestAnswers expresses that the common public is becoming more and more aware of inflation. Further, noting that the traditional assets cannot always come to the rescue.
Keeping Money In Banks Is Not Working For The Wealthy Folks
He highlights the question: what’s the hedge? There are three choices to get priced out of the market as real estate’s all-cash buyers, second is Gold, but with twenty per cent purchasing power debasement, Gold does not go 20% up annually. And that we need something that has much more alpha than that.
The analyst further highlights that even banks are not working as an effective option for the wealthy who wish to preserve their capital. And that the gap is where Bitcoin would work as its narrative being an inflation hedge is prevailing.
He noted that he hears many reports that people with a lot of money are seeking a hedge right now. And that they are sitting on a third of their net worth in a bank account, losing 2% of the value per month.
Furthermore, he highlights that they are doing the maths in their head and realise that they need to fix this. They are already all-in on equities and real estate, but what exactly would they do with their cash balances. And once that market works, all we need is that narrative to be there.
He emphasises on the crowned cryptocurrency signifying that the narrative has not worked because the numbers have not worked as the price has been slightly manipulated.
He is firm on the fact that there is only one hard asset on the planet, and that is Bitcoin (BTC).
Many prominent entities often talk about the potential they see in Bitcoin, which is often compared to Gold. It is indeed true that the flagship crypto has grown by leaps and bounds with time, but the worldwide scepticism about its reliability has always hovered around the asset class. It is to look forward to how Bitcoin will evolve in the future and what the folks’ thoughts would be regarding it.
At the time of writing, Bitcoin is trading at $40,490 with a market cap of $770,242,342,280.
Source: https://www.thecoinrepublic.com/2022/04/26/is-bitcoin-outperforming-gold-and-real-estate-as-inflation-hedge-a-crypto-analyst-thinks-so/