Bitcoin has undergone strong volatility this year as the pandemic has rocked markets. While this volatility has turned many off to this space, some say that the ongoing macroeconomic and geopolitical trends make Bitcoin more important than ever before.
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Bitcoin Is So Important In Current Macro Environment
Naval Ravikant, an angel investor to companies like Uber, Twitter, and Notion, recently touched on this in an interview with Tim Ferris. Ferris is a host of a famous podcast where business and self-betterment is discussed.
Ravikant explained that this year, something monumental happened in American politics:
“Probably the scariest thing that happened in 2020, from a financial perspective, is both the Republican and the Democratic party figured out that, ‘Oh, actually we can just print lots and lots of money. when we print a dollar, 70 percent of that inflationary attack effect cost is borne by the rest of the world, not born by us. And so the US government’s figured this out.”
Bitcoin comes in here in that the coin is a deflationary asset that is a hedge against inflationary risks.
Some selected tweets from @naval's most recent appearance on The Tim Ferriss Show that specifically reference how he is currently thinking about Bitcoin + crypto.https://t.co/dD1BAHWFef
— Anil ⚡ (@anilsaidso) October 15, 2020
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Far From the Only Bull
Ravikant is far from the only bull when considering the current macroeconomic trends and their potential effect on a network like Bitcoin.
Former head of hedge fund sales at Goldman Sachs, Raoul Pal, said that Bitcoin is extremely valuable in this macro environment where deflation will be staved off with any inflation needed:
“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”
I know bitcoin and gold are selling off right now and may go further but with Powell today, it tells you they have no desire to raise rates and a skewed desire to print more. That plays to the inherent upside skew in both assets.
I think they both rise over time in inflation 1/
— Raoul Pal (@RaoulGMI) August 28, 2020
Chamath Palihapitiya, CEO of Social Capital and one of the earliest Facebook executives, also said that he thinks that Bitcoin is absolutely crucial to own at this point in time. He says that the coin could hit $1,000,000 in this market cycle if the macro trends align well.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Uber, Twitter Angel Investor Explains Why Bitcoin Is So Important
