Traditional billionaires could take the Bitcoin market by storm any time from now on. As recently noted, inflation in the United States has been at a 13-year high.
Apparently, the increase in the price of cars affected this result. Over the past 12 months to last month, consumer car prices have risen by 5,4%; a 5% increase since May, the largest increase recorded in August 2008.
Where Bitcoin comes into play
As inflation rises, it makes sense for the masses to look to an outside source for hedging, and Bitcoin could rise if singled out as the most worthy. Following the recent development, Bitcoiners have been urging the public to enter the market and buy at low cost to bypass market saturation.
Last year, a handful of billionaires took the Bitcoin market by storm following the inflation rush in the US market. Beginning in 2020, when the COVID-19 pandemic hit the global economy, there was a visible craze, as noted by multiple financial firms, that different financial classes were looking for hedging against inflation.
In the past, gold was the benchmark, as the precious metal held its position as the main asset for the longest time. However, with the arrival of digital currencies, especially Bitcoin, the market has seen a shift in demand for the store of value.
It looks like Bitcoin could be even more useful for US residents, especially residents of Africa, whose economy has already been hit hard by the pandemic.
BTC mining is sponsored in Eiopia
As noted by Forbes, Ethiopian inflation has increased dramatically and the investments in Bitcoin, along with profitable cryptocurrency-related investments, could help revive the economy.
"Ethiopia: inflation is 24,5%, the national bank owns $ 3 billion which is rapidly depreciating, the trade deficit of $ 12 billion leads to the devaluation of the local currency, the national airline that earns in currency foreign country has an uncertain future due to Covid. Enter bitcoin mining ".
Meanwhile, the Guardian says the Federal Reserve is obliged to review and tighten its current monetary policies, prompting the demand for wage increases.
Inflation could revive the digital currency
Andrew Hunter, a senior US economist who believes the inflationary fear is far from over, told investors that consumer prices will rise as the tax burden increases, due to the supply shortage caused by the pandemic. Excerpts from his note to investors state that: “… the major concern is that inflationary pressures are now clearly building up even in more cyclically sensitive sectors, which could prove to be more lasting”.
And what do you think of all this? Will other traditional billionaires join the bitcoin sourcing? And who will be next? Please let us know in the section below.