Recently, James Mullarney, the host of the very popular YouTube channel “InvestAnswers” explained why Bitcoin is the best inflation hedge.
When Mullarney was interviewed on April 22 by crypto analyst Benjamin Cowen, he said that average investors are turning towards cryptoassets as an escape from inflation. He argued that investors have wizened to the fact that traditional assets, such — as stocks, gold and real estate — are no longer the preferred solution for fiat inflation.
As reported by The Daily Hodl, Mullarney said:
What’s the hedge? Three choices: one, you get priced out of the market [because] real estate’s all-cash buyers. Number two, it’s gold, but with 20% purchasing power debasement, gold doesn’t go up 20% per year. You need something that really has much more alpha than that.
He also claimed that wealthier investors are avoiding banks as a place to store their liquid capital. He noted that instead the ultra wealthy are looking for better places to park their money, and are already maxed out in real estate and equities.
The analyst argued that Bitcoin would benefit by furthering its narrative as an inflationary hedge. He mentioned that historically the narrative has not worked because “the price has been a little manipulated” and suppressed.
However, he said Bitcoin was the only “hard asset on this planet” that he was aware of and thereby had the potential to be the best hedge against inflation. He predicted that wealthier investors would increasingly shift their capital towards Bitcoin as its hedge narrative grows.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.