Bear Traps Report macroeconomic strategist Craig Shapiro said Bitcoin has an absolute advantage as a hedge against rising inflation and budget deficits compared to fiat currencies.
The expert believes that traditional currencies are gradually losing their value due to growing government debt, political uncertainty and inflationary pressure. In his opinion, Bitcoin, as a decentralized asset with a fixed supply of 21 million coins, is becoming a reliable way to preserve capital in the conditions of growing economic instability.
“If you live in a country where taxes are inevitably rising due to high deficits and spending cuts are not being made, or in a country where your wealth is constantly being eroded due to high inflation, storing your wealth in an external money like Bitcoin makes more sense than ever. Bitcoin is the perfect external money,” Shapiro said.
SkyBridge Capital founder Anthony Scaramucci also shares the idea of Bitcoin as a form of “external money.” He expects that in the future, the number of Bitcoin owners could reach one billion people, which would give many people the opportunity to protect their savings, since governments cannot manipulate Bitcoin as they do with fiat currencies.
Similar views are shared by ARK Invest CEO Cathie Wood, who said in an interview on CNBC’s Squawk Box that the rise in Bitcoin adoption in some countries is partly due to people trying to protect themselves from currency devaluations and as insurance against politically unstable regimes.
