BTC is considered the first port of call in the crypto scene when it comes to protecting against rising inflation. And having good inflation protection seems more important now than ever.
BTC to the Rescue: Inflation Protection Asset No. 1
The inflation rate only jumped to 7.3 percent on March 30th. If you follow the theories of US entrepreneur Ray Dalio, as he elaborates in “Principles for Dealing with the Changing World Order”, assets like BTC are ideally suited to absorbing the sometimes haphazardly printed US dollar and euro bills.
Because BTC, as a decentralized monetary system, represents an alternative to fiat currencies. The maximum supply is limited to 21 million units, which are gradually being thrown onto the market. Over time, the supplies become increasingly scarce and everyone can check at any time how many bitcoins are in circulation and how much supplies are still available.
Michael Saylor, a crypto fan of the first degree, MicroStrategy CEO and regular guest of Opinion ECHO, prompts these qualities to make the following statement:
If you feel like inflation is robbing you, BTC will give you your money back.
Let’s hope he’s right.
“Proof of work… works. We don’t have to change it”
Ever since Satoshis made their way into public attention, the topic has been a hot topic: energy consumption and the associated impact on the environment. This led to Greenpeace calling for BTC to switch to Proof of Stake (PoS) last week. There was support for this idea from Chris Larsen, the co-founder and chairman of Ripple.
In the BTC community, such proposals are of course met with opposition. Because Proof of Stake is fundamentally different from Proof of Work, PoS gives large stakeholders far more power in the network, which is one of the criticisms.
Dan Held summarizes this line of reasoning as follows:
Proof of work… works. We don’t have to change it.
“There is not enough BTC to meet demand”
The crypto project Terra around the Luna token started last week to massively increase its own BTC reserves. This is the project became the third largest hodler after Tesla and MicroStrategy. CEO Do Kwon’s goal: to invest $10 billion in BTC to secure the network.
Anthony Pompliano sees a conflict with the BTC supply here. This might not be enough for the high demand from Terra.
So bullish times could be ahead.