A Bloomberg analyst claimed that Bitcoin is “potentially primed” to make a quantum leap in its growth thanks to inflation this past year.
This year, it is unlikely that Bitcoin will beat gold
McGlone is well-known for believing that Bitcoin will emerge from the current global financial turmoil on top. He argued that inflation would eventually help Bitcoin’s “maturation” as an asset class and even surpass gold in terms of returns.
He wrote, “Facing inflation, war, and the Federal Reserve, 2022 may be primed to risk-asset reversion, and mark another milestone of Bitcoin’s maturation.”
“It is unlikely that Bitcoin will stop outperforming gold and stock market amid bumps on the road as Fed attempts another rate-hike Cycle.”
The accompanying chart shows Bitcoin’s performance relative a basket of macro-assets.
The first of what the Fed suggested was a series key interest rate increases, which provided a welcome boost to BTC prices.
Former BitMEX CEO sees $1 million BTC
McGlone was not alone in his prediction. In his latest Medium post, Arthur Hayes (ex-CEO of BitMEX derivatives exchange) gave a warning about the future for global financial markets.
Related: What tokens should I buy and hodl for 2022? Get The Market Report Live Now!
While the war between Ukraine and Russia has increased inflationary pressure, it is symbolic because it has demonstrated that even central banks’ foreign currency assets can be effectively stolen.
He reasoned that “you cannot remove the largest energy producer in the world — and the collateral these commodities represent — from financial system without serious unimagined or unintended consequences.”
The post covered a variety of macro topics and predicted a restructuring in the financial system. During this time, Bitcoin would suffer heavy losses, just like stocks or commodities.
“If you don’t want to care for your Bitcoin, close your eyes and press the buy button. Now, focus on your safety from both a financial and physical perspective. Hayes stated that waking up a few years later after the fog of warfare has passed will result in a situation in which all global trade is controlled by hard money instruments.
In the end, however, Bitcoin and gold should play a much greater role as store of value, despite declining participation in the U.S. Dollar and the euro standard from other countries.
These circumstances, which he admitted would be the norm “over the next decade”, could see gold reaching five figures per ounce while one Bitcoin could fetch seven figures.
My unit is worth millions of Bitcoins. He continued, “For an ounce gold, my unit would be in the thousands.”
“This is the fiat denominated value that will be realized in the next years when global trade is settled through neutral hard monetary instruments, and not the West’s debt-backed fiat currencies.”