A popular crypto analyst says Bitcoin (BTC) is becoming a better inflation hedge than gold and real estate.
In a new discussion on Benjamin Cowen’s YouTube channel, the host of InvestAnswers explains that average people are becoming increasingly aware of inflation and that traditional assets can’t always solve the problem.
“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.”
The analyst says that keeping money in the bank is also not working out for wealthy people wishing to preserve their capital. He says the gap is where Bitcoin‘s narrative as an inflation hedge is prevailing.
“I’m hearing a lot of reports that people that have a lot of money, they’re really looking for that hedge right now. They’re sitting on a third of their net worth in a bank account. They’re losing 2% of value a month. They’ve done the calculations.
So you got $5 million in the bank, you’re losing 2%. They’re like that’s a lot of AirBnB’s. That’s a couple of yacht charters…
They’re doing this math in their head. They’re saying, ‘We got to fix this fast,’ and they’re already all in on equities, all in on real estate, but what do they do with their cash balance? Once that market comes over, we just need the narrative to be there.
The narrative has not worked because the numbers haven’t worked because the price has been a little bit manipulated, suppressed, but as far as I’m concerned, there’s only one hard asset on this planet, and I’ve looked, and that’s Bitcoin.”