The macroeconomic backdrop around Bitcoin (BTC) may become more difficult to navigate as the Federal Reserve continues to raise interest rates. However, Bitcoin is the only way to ensure the transition to a new monetary normal, according to participants in a panel discussion on the current macroeconomic situation at the Bitcoin 2022 conference.
Source: video capture, Bitcoin Magazine / YouTube.
By opening the discussion, the Dr. Jeff Rossfounder and CEO of Vailshire Capital Managementurged the public to mentally prepare for what might happen to the price of Bitcoin in the near term.
Bitcoin is still highly correlated to the stock market, he said, warning that the FED’s planned rate hikes could translate into lower stock prices in the future.
However, Ross added that Bitcoin remains a viable way to store value and save money over the long term, given that he expects fiat currency to lose value. .
People will flock to Bitcoin because they need to preserve their purchasing power, he explained.
Mr. Ross added that Bitcoin’s value over time is “approaching infinity” and supports Michael SaylorCEO of MicroStrategy on this point.
A technological and decentralized revolution
Mark Mossa popular YouTuber and bitcoin advocate, said that “we are witnessing a technological revolution and a decentralized revolution,” at a time when there is a lack of trust in society.
Nations don’t trust each other and people don’t trust their governments, Moss said, noting that a “decentralized ledger” is the best way to solve this problem.
Similarly, other panelists, including Jeff Boothtech entrepreneur and author of the book The Price of Tomorrowsaid technology is driving change today, and “always has been.”
It’s one thing that Ray Dalio forgets when he talks about the “end of the long-term debt cycle”, Moss and Booth claimed.
Ray Dalio, famed investor and chief investment officer of the world’s largest hedge fund, Bridgewater Associatesbecame known for his in-depth work on debt cycles.
Fiat money takes from the poor and gives to the rich
According to Jeff Booth, the current system around fiat money means that wealth is continually “transferred from the poor and middle class to the rich.” The technology is deflationary, but the FED is trying to counter that by printing more money, he argued.
Booth also opined that it inflates asset prices, which benefits the owners of the assets, while people who don’t own assets pay for it in the form of higher prices on everything.
“That’s not how the free market works. The free market is deflationary,” Booth said.
He also said that ESG (environmental, social and governance) issues are “intractable” without Bitcoin because fiat currency must continue to be printed in order to “pretend that we are living in an endless cycle of growth.”
“I asked this question to Bill GatesI asked this question to Al Gore and on Twitter […] and there is not one plausible answer,” Booth said, adding that this tells us that “there is no answer from the existing system.”
“Remember, the US dollar failed in 1971, then you created the petrodollar system, and it’s failing again right now,” he said.
Inflation causes an “incredible shock”.
At last, Preston Pyshanother popular BTC advocate and host of The Investor’s Podcastwarned that the transition from the era of low inflation to the current era with high levels of inflation is going to be difficult.
When you move from a low inflation environment, “you can see why the global economy is going to take an incredible shock” with the levels of inflation we are currently experiencing, Pysh said, before adding one final piece of advice. :
“Buy Bitcoin and let it sleep for five years”.
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