The Bitcoin vs. Dollar debate has been a favorite topic among financial analysts, cryptocurrency enthusiasts, and general investors. As Bitcoin continues its erratic price movements, even briefly reaching over $70,000 in March 2024, the question remains as relevant as ever. So, is Bitcoin a better store of value and hedge against inflation?
If we ask experts, many agree that Bitcoin is much better than the US dollar and other fiat currencies. According to Anthony Pompliano of Professional Capital Management, Bitcoin Better because fiat currencies are more volatile, and simplify many investment principles.
Pompliano pays for Bitcoin
In an interview with Fox News, Pompliano shared his thoughts on what’s going on Discussing Bitcoin and the Dollar. Bitcoin is better off because fiat currencies are more volatile, and the public faces their diminishing purchasing power, he said.
Pompliano believes that Wall Street and the rest of traditional finance have failed to see the value of Bitcoin. The classic economic scarcity problem is at the heart of Bitcoin’s advantage: there are only 21 million Bitcoins available, a scarce asset compared to the fiat currencies that central banks can continue to print and issue.
Pompliano’s interview and ongoing discussions come with growing institutional interest in Bitcoin. After the US Securities and Exchange Commission (SEC) approved Bitcoin (BTC) ETFs on January 10, 2024, there has been increased interest and money flowing into these funds. Months after the first 11 funds were approved, interest in Bitcoin ETFs continues, helping to boost the price of the cryptocurrency.
Bitcoin vs. the Dollar: Anthony Pompliano explains why BTC is better than fiat currencieshttps://t.co/1sG1aad8OX
– John Morgan (@johnmorganFL) October 20, 2024
Bitcoin: a simple but rare commodity
According to Pompliano, The attractiveness of Bitcoin The value lies in the simplicity of the investment principles. Since the supply of Bitcoin is limited, this may affect its future market value. The problem that many traders and investors face, according to Pompliano, is that they focus too much on complex financial products such as leverage and trading.
The problem with these complex and popular instruments is that you have to track prices and trade in a timely manner. However, with Bitcoin, users only need to buy and hold. In short, Bitcoin offers long-term appreciation in value and a better hedge against inflation.
Deutsche Bank Analyst Sees BTC as ‘Digital Gold’
Bitcoin has a lot of support from financial analysts. According to Marion Laborie, an analyst at Deutsche Bank Research, it has the potential to become “the gold of the 21st century.” Labor says the $1 trillion-plus market cap of bitcoin and cryptocurrencies is too big to ignore.
Labor adds that Bitcoin will soon continue to grow as a viable payment alternative, while the share of fiat currencies in transactions will decline. She adds that bitcoin is “digital gold,” and that ether, the second most popular currency, could be the next “digital silver.”
Featured image from Pexels, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.