[2023-11-07] Cathie Wood:Bitcoin Is A Hedge Against Both Deflation And Inflation

[hungtm156]

Cathie Wood, CEO of ARK Invest, believes Bitcoin is a secure long-term asset, citing its decentralized nature and transparency. She sees traditional banks facing challenges and believes they may struggle to meet withdrawal demands, leading to increased interest rates. Wood connects this to the 2023 banking crisis and argues that Bitcoin's value is reinforced by such events. Despite acknowledging gold's merits, she trusts Bitcoin to hedge against inflation and deflation. Other notable investors, like Stanley Druckenmiller and Paul Tudor Jones, share positive views on Bitcoin.
Read the full article here: https://coinminutes.com/news/cathie-wood-bitcoin-is-a-hedge-against-both-deflation-and-inflation/

[1715211939]

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[1715211939]

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[cr1776]

Cathie Wood, CEO of ARK Invest, believes Bitcoin is a secure long-term asset, citing its decentralized nature and transparency. She sees traditional banks facing challenges and believes they may struggle to meet withdrawal demands, leading to increased interest rates. Wood connects this to the 2023 banking crisis and argues that Bitcoin's value is reinforced by such events. Despite acknowledging gold's merits, she trusts Bitcoin to hedge against inflation and deflation. Other notable investors, like Stanley Druckenmiller and Paul Tudor Jones, share positive views on Bitcoin.
Read the full article here: https://coinminutes.com/news/cathie-wood-bitcoin-is-a-hedge-against-both-deflation-and-inflation/

Yeah, and not just banks facing challenges.  Government too with their profligate spending and consequent huge interest costs which are in reality causing the people of various countries to face challenges.  When your interest costs (like in the US) are more than $1 trillion per year due to insane spending policies there are few choices, one of which is inflating your way out of the problem which then hurts every single citizen.  But the "something for nothing" crowd like AOC are either too stupid to understand the issue or have decided they'd be willing to destroy the currency and thus the country to obtain power.

[Kakmakr]

Well, traditionally things like Gold and commodities and raw materials like oil, metals and agricultural products are used as a Hedge against inflation, because they retain their value in unstable conditions, but Bitcoin has shown that it can do that over longer periods.

During deflation, Cash becomes the most valuable asset because it can buy more.... and Bitcoin can both be a Commodity and a currency, so I guess she is correct.. if she says Bitcoin can be used to counter both. 

[cr1776]

Well, traditionally things like Gold and commodities and raw materials like oil, metals and agricultural products are used as a Hedge against inflation, because they retain their value in unstable conditions, but Bitcoin has shown that it can do that over longer periods.

During deflation, Cash becomes the most valuable asset because it can buy more.... and Bitcoin can both be a Commodity and a currency, so I guess she is correct.. if she says Bitcoin can be used to counter both. 

Yeah, you are right.  This is essentially the reverse of Gresham's law.  Good money (aka bitcoin and other things backed by assets) will eventually drive out bad.  People won't accept anything for the long term that is going to be inflated away.  Not to mention all the other benefits of bitcoin. 

Eventually people will realize that fiat not backed by anything is worth less (and eventually worthless) in the long term.  In the short term politicians can get away with devaluing a currency but reality catches up with their shenanigans eventually.  It is only a question of when.  An asset/currency/token/etc such as bitcoin illustrates the costs of holding fiat for the long term and helps expose that the emperor has no clothes.