Bitcoin “Inflation Hedge” Argument Is a Fairy Tale Used By Speculators: CNBC Anchor
Does anyone actually buy Bitcoin (BTC) as an inflation hedge? CNBC’s Andrew Sorkin isn’t sold on the idea.
During an interview with Pomp Investment founder Anthony Pompliano on Monday, both men debated whether BTC’s theoretical role as a “risk off” asset is a real thing or a mere narrative driven by speculators.
Pompliano argued that Bitcoin can mean different things to different people. “I think for some people it’s a risk on asset, and for other people, it is a hedge against inflation or a store of value,” he argued.
Historically, the price of Bitcoin (BTC) has strongly correlated with that of high-risk tech stocks, and the Nasdaq, and has proven sensitive to prevailing macroeconomic policy. That said, value investors often liken Bitcoin to gold – a “risk off” inflation hedge asset – due to its limited supply, usability as money, and incorruptible nature.
Pompliano claimed that Wall Street investors – who are more likely to buy Bitcoin through its new, highly popular spot ETF products – are likely only buying for its high potential growth.
Meanwhile, buyers in less stable countries may be interested in using Bitcoin to protect their wealth, since the asset cannot be seized through brute force.
Bitcoin provides hope & protection for anyone.
The US dollar has lost 25% of its purchasing power in 4 years, while bitcoin has gained over 800%.
We are watching a global store of value be adopted.
Here is my full segment on @SquawkCNBC this morning. pic.twitter.com/XvO0B4yE0o
— Pomp
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