Wall Street legends warn us of the inflation increase. Is it time to buy crypto?
Additional stimulus packages will increase US government debt, as the Federal reserve continues to intervene to monetize debt by printing more money, inflation is expected to rise rapidly.
Dollar will lose its purchasing power
Legendary investors such as Warren Buffett, ray Dalio and Jim Rogers are preparing to hedge against high inflation, mainly through physical assets such as gold and silver. But other major investors, such as George ball, Paul Tudor Jones, and even Jim Kramer, are now strongly in favor of cryptocurrency.
Wall street legend and Berkshire Hathaway Chairman Warren Buffett is one of many investors who are starting to worry about inflation. Recently, Warren Buffett left US banks and gained access to Barrick Gold. Buffett then made overseas investments in Japanese companies with various activities, such as mining and energy.
The prices of gold, inflation-linked bonds, and Bitcoin have surged since the market crash in March on concerns that global Central banks channeling more than $ 9 trillion to fight the pandemic will cause higher inflation. The Federal reserve also indicated at its FOMC meeting last week that it would be slower to respond to a reduction in inflation if it exceeded its 2% target.
Ray Dalio said Central banks are stimulating capital markets
Billionaire ray Dalio, founder of hedge Fund giant Bridgewater Associates, also expressed concern about the us dollar as a reserve currency, as the flow of Fiat funds clearly indicates that the traditional valuation method is no longer applicable to cash. While dalio is bearish about cash as a reserve currency, He still believes that cryptocurrencies like Bitcoin are too volatile to be considered as an alternative.
It is reported that Bridgewater has now changed its safe haven portfolio, dumping bonds and switching to gold.
Buffett and Dalio’s sentiments were echoed by legendary wall street investor Jim Rogers, who warns that a trillion-dollar bailout will lead to economic collapse.
While Rogers has admitted in the past that he would like to invest in crypts sooner, he is putting his money into gold, silver and betting on many of the industries that were affected during the COVID pandemic-transportation, tourism, and logistics, which he expects to strengthen after the pandemic.
The case for Bitcoin
As the Federal reserve continues to buy government debt with printed money, inflation will rise along with the government debt. As a result, asset prices will rise and the dollar will depreciate. In addition to gold or silver, a new form of digital gold – Bitcoin-is gaining momentum among major investors.
MicroStrategy, a NASDAQ-listed company, has decided to use PTS as its main reserve currency, recently adding $ 250 million to its August investment in BTC, and last week another $ 175 million in a secure digital asset.
In a recent interview with Reuters, George ball, former chief Executive of Prudential Securities and current Chairman of Sanders Morris Harris, said that although he has long been an opponent of bitcoin, he now considers It a safe haven asset, following the us government’s efforts to continue stimulating the economy with liquidity.
Even CNBC Mad Money host Jim Kramer recently said that he believes there is a major shift in safe assets, and believes that bitcoin And cryptocurrency will be the next generation’s choice as a store of wealth, and is also considering placing 1 percent of its portfolio assets in cryptocurrency.
Do not be under any illusions based on all economic considerations: high inflation is approaching, and Fiat money is likely to lose its purchasing power. And what will you do to protect your savings?