Mike McGlone, Senior Commodity Strategist for Bloomberg, believes that 2022 will be a prosperous year for bitcoin and gold. He predicts that the price of the primary cryptocurrency will reach $100,000 and the price for the precious metal at $2,000.
What will fuel Bitcoin’s rally in 2022?
The current global financial system is going through difficult times. Many companies had to suspend operations temporarily or allow their employees to work remotely due to the COVID-19 pandemic and health concerns. This caused immediate disruptions and hampered productivity. It also provided a solid foundation for future monetary problems.
To alleviate short-term pain, many central banks began printing large amounts of fiat currency. The inflation rate soared to levels not seen in decades as a result. It is now at over 6 percent in the USA, the highest level it has been for nearly 40 years.
While national currencies like the American dollar are losing their purchasing power, bitcoin can be seen as an alternative. It is currently an inflationary asset. Its 21 million coin supply is a reliable scarcity that has made it an attractive investment tool. Many people have taken advantage of this asset during financial turmoil.
However, Bloomberg’s Mike McGlone predicts that “deflationary factors” will prevail next fiscal year and that inflation will cease spreading around the world. This could allow the primary cryptocurrency to reach a milestone of its USD development of $100,000. Experts predict that the same factors will lead to gold reaching $2,000 and oil reaching $50.
$100,000 #Bitcoin, $50 #Oil, $2,000 #Gold? 2022 Outlook in 5 charts – Peaking commodities, the falling yield on the Treasury long bond and $2,000 #Gold point to the risks of deflationary forces being revived in 2022 with positive implications for Bitcoin and gold. pic.twitter.com/j3VNAOCwuz
— Mike McGlone (@mikemcglone11) December 9, 2021
Bitcoin as a hedge
Bloomberg also revealed recently that investors are using bitcoin to protect themselves against rising inflation. Bloomberg even called bitcoin the “best inflation hedge”
Many prominent people support the theory that Bitcoin could be an alternative to traditional currencies, such as Paul Tudor Jones and Anthony Scaramucci. Jordan Peterson, a well-known YouTube personality and clinical psychologist, joined the club not long ago.
Peterson purchased more bitcoin after having a conversation with Dr. Saifedean Ammous. Ammous stated that bitcoin was “essentially the most powerful defense technology against inflation.”
John Authers, a Bloomberg journalist, determined that BTC had achieved 99.996% inflation over the past ten years. This means that a single coin now costs only 0.004 today.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.