2022 was a very difficult year for the crypto ecosystem in general, with a crash in the cryptocurrency market. The various crises that rocked the industry also contributed to a 70% drop in the price of bitcoin (BTC).
Some critics of cryptocurrency have taken the opportunity to argue that it does not provide a hedge against inflation. Their opinion, however, is contrary to that of Anthony Pompliano, the crypto influence, who rose again to the plate to ensure otherwise.
The arguments on which Anthony Pompliano’s position is based
Anthony Pompliano, well known for his love of bitcoin, maintains that this cryptocurrency is currently the best hedge against inflation. To defend his point of view, he did not hesitate to produce a detailed argument which he presented recently published on Twitter.
In fact, in his publication, Mr. Pompliano explained that the strength of bitcoin comes from the fact that market movements are oriented towards the future. He said of it:
“You have to understand that markets are looking to the future. They develop based on what people think will happen in the future, not what happened in the past. Price movements, especially inflation hedges, predict the future. »
Referring to the opposing camp, he claimed that many people wrongly pointed out that the 2022 bitcoin crash proved that it was not a hedge against inflation. “It couldn’t be more accurate. You expect the price of inflation-hedged assets to fall when the Fed lowers inflation. Surprise! That’s what happened. “, is declared
In addition, Mr. Pompliano, who supported his position until the end, did not fail to provide some advice to his followers regarding bitcoin trading. Above all, he urged them not to be influenced by market turmoil and reminded them that “when inflationary expectations are raised, people buy bitcoin. When inflation expectations fall, they stop buying it. »
Also read: Bitcoin surpasses Warren Buffett’s “crypto bet” in 2023!
About the Recent Rise of Bitcoin
Anthony Pompliano also talked about the rebound that bitcoin suffered at the beginning of this year, but also in the last week. For him, this cryptocurrency is just a reaction to the macroeconomic situation prevailing in the market at the moment.
The bitcoin news is pretty good as the crypto industry continues to face more regulatory crackdowns. Although some observers are still skeptical about the continuation of this trend in the midst of the banking crisis in the United States, others are rightly expecting that bitcoin will seize the opportunity to reach new heights.
This is the case of Balaji Srinivasan, former CTO of Coinbase, who “predicted that bitcoin would reach $1 million within 90 days due to hyperinflation in the United States. »