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28 November 2021
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Think Bitcoin: Jack Dorsey warns, “hyperinflation is going to change everything”

Inflation is gradually kicking in around the world, and some people believe it’s the outcome of the lax monetary policy of Federal Reserves and the significant increase in money supply during the outbreak of the coronavirus pandemic. To beat inflation, many experts and investors have advised investing in real assets such as precious metals (e.g., gold, silver, etc.), including digital assets like Bitcoin, which is considered a better inflation hedging asset. 

Inflation is ticking

In January 2021, the United States inflation rate was around 1.4%, but currently staggering around 5.4%. As of October 21, the Inflation Expectations in the country were also seen at the highest levels since 2006, according to the founder of Compound Capital Advisors, Charlie Bilello. 

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Not just the United States. Data from Trading Economics reveals that other G20 countries are also seeing a spike in inflation points, including Argentina, Canada, Germany, Spain, and many others. This will be a frightening development if the trend goes on for long.

Think Bitcoin: Jack Dorsey warns, “hyperinflation is going to change everything” 1

It may be too early to predict hyperinflation, but many people are seemingly not going to take chances. Jack Dorsey, the CEO of Twitter, believes hyperinflation is going to change a lot of things. It’s unclear how severe this can affect the livelihood of people, but it’s speculated that real assets holders are going to benefit in such a situation, or at least preserve their money from devaluation.

Bitcoin is hope

Amidst the uncertainty, many people are betting on the leading cryptocurrency asset to hedge against inflation. Peter Thiel, the founder of Paypal, is one of the people who are hopeful on Bitcoin, to the extent he wished to have purchased more BTC. “I feel like I’ve been underinvested in it,” Thiel said during an event hosted by non-profit Lincoln Network. 

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