Bitcoin, Bonds & Inflation

By Beth Canova on June 13, 2021

Talk of inflation is everywhere. Earlier this week, Treasury Secretary Janet Yellen said on Saturday inflation could climb as high as 3% this year as the economy recovers from the depths of the coronavirus recession. But the Federal Reserve has promised to keep interest rates low through the end of 2022 and plans on continuing its money-printing policy in hopes of boosting the stock market.

The Fed is of the opinion that any spikes in inflation are transitory and don’t warrant a change in policy to combat it.

Some investors are starting to disagree, including Ray Dalio. As our Weiss Crypto Sunday Special host Chris Coney explains, when inflation rises, investors look to park capital in safe havens. Traditionally, that meant gold and bonds. But with current interest rates, inflation above 5% would mean investors would lose value if they parked their capital in bonds.

The inflation rate year over year as of the end of May is 5%.

According to Chris, “That’s probably why Ray Dalio has turned to Bitcoin (BTC, Tech/Adoption Grade “A-”) and why he would rather hold it than a bond. As long as Bitcoin outperforms basic price inflation, you’re better off holding Bitcoin despite all the volatility in the long run.”

Weiss crypto analyst Alex Benfield weighs in as well: “I would say almost every year, Bitcoin’s existence has returned more than a 5% return. So, the likelihood that it outperforms inflation is pretty high, especially when you’re considering a two or three-year hold.”

In this timely discussion, Alex and Chris cover:

•  The real risk of inflation for Wall Street investors vs. retail investors.

•  Bitcoin’s position as a store-of-value safe haven.

•  Whether custodians can handle an influx of new investors fleeing inflation fears.

And more!

This week’s Weiss Crypto Sunday Special is especially timely and important. I highly recommend you watch it now.

Best,

Beth Canova
Managing Editor

Get Free Alerts
For free alerts on critical ratings changes and urgent market news, sign up here:
Email Already Used
The specified email address has already been used.
Thank You for Registering!
Please check your inbox for your confirmation email.
Then, just click the link in the email to verify your email address.
If you have not received the email, please check your spam or junk mail folders.
Top Articles
Loading...

Follow Us On Twitter

Be the first to know...
Register below to get our regular news updates. Plus, registration lets you create your own personal Watchlist to receive email alerts of downgrades and upgrades.
No thanks
Email Already Used
The specified email address has already been used.
Thank You for Registering!
Please check your inbox for your confirmation email.
Then, just click the link in the email to verify your email address.
If you have not received the email, please check your spam or junk mail folders.
Start Your Free Watchlist Now
Please tell us where to send your CRYPTO alerts by registering below. Then, create your personal watchlist, and we’ll let you know whenever our ratings change.
Plus, you’ll also get our regular news updates.
No thanks
Email Already Used
The specified email address has already been used.
Thank You for Registering!
Please check your inbox for your confirmation email.
Then, just click the link in the email to verify your email address.
If you have not received the email, please check your spam or junk mail folders.


Weiss Crypto Ratings PLATINUM

SUBSCRIBE TODAY AND GET ACCESS TO ... 


Subscribe


No thanks
Weiss Crypto Ratings