Mike McGlone – Senior Commodity Strategist at Bloomberg – expects 2022 to be a successful year for both bitcoin and gold. He believes the primary cryptocurrency will hit $100,000, while the precious metal will trade at $2,000.
The current global financial system is passing through tough times, to say the least. The COVID-19 pandemic, and the health concerns around it, caused many companies to temporarily cease operations or send their workers to work from home. This led to immediate disruptions, crippled productivity, and built a solid base for future monetary issues.
At the same time, numerous central banks started printing vast amounts of fiat currencies to alleviate some of the short-term pain. However, by doing so, the inflation rate surged to unseen levels in decades. In the USA it stands at over 6% – the highest it has been in nearly 40 years.
And while national currencies, such as the American dollar, are slowly losing their purchasing power, bitcoin is considered by many as the exact opposite. As of the moment, it is an inflationary asset. Its fixed supply of 21 million coins ever to exist gives it a trustworthy scarcity, making it an attractive investment tool that many people got on board during the ongoing financial turbulence.
Nonetheless, Bloomberg’s Mike McGlone predicted that “deflationary forces” will prevail next year and inflation will stop spreading across the globe. This process could help the primary cryptocurrency to tap a significant milestone in its USD development of $100,000. According to the expert, the same factors will cause gold to climb to $2,000 and oil to hit $50.
Another recent statement from Bloomberg revealed that many investors currently protect themselves from the rising inflation by getting into bitcoin. The company even called the leading cryptocurrency “the best inflation hedge around.”
The theory of BTC being such an alternative is supported by many prominent names, including Anthony Scaramucci, Paul Tudor Jones, and Barry Sternlicht. Not long ago, Jordan Peterson – a clinical psychologist and a famous YouTube personality – also joined this club.
After having an educational conversation with Dr. Saifedean Ammous, who stated that bitcoin is “essentially the most powerful defensive technology against inflation,” Peterson said he bought more BTC.
Subsequently, John Authers – journalist at Bloomberg – determined that BTC has achieved 99.996% deflation over the last ten years, meaning that the price of a single coin in 2011 now costs just 0.004 of it today.