Investors have been arguing for years that printing money would weaken fiat currency and drive scarce assets such as Bitcoin.BTCThe price of a car is dramatically higher. Once dismissed as an obscure view, it has entered the mainstream.
James Lavish, hedge fund manager and expert in macroeconomics spoke to Cointelegraph about the increasing acceptance of this thesis. James Lavish’s message is straightforward: if hard assets are not owned, then you will fall behind.
“Prices of goods are inflating. And so if you don’t own them, then you’re going to be left behind.”
Lavish traced the problem back to the fiat age that started after the US abandoned the gold standard in 1970. The money supply, in particular during recent crises has been exploding since then. He describes this as creating a structural problem of inflation. US Government continues to run huge deficits and only solution to this is to slowly debase the currency.
He says that even the largest institutions are able to see this in real-time. “Banks are recognizing this. And guess who else has recognized it? All the credit agencies,” Lavish pointed out that Microsoft now has a “better credit score than the US government.”
Lavish believes that this new age of inflation and liquidity could be the catalyst for Bitcoin’s rise. And while short-term volatility remains a risk — especially if the broader market sells off — he expects the cryptocurrency to recover faster and stronger than most traditional assets.
Can I still benefit from the law? Lavish does not think so. Bitcoin’s adoption has just started, particularly among institutional investors.
Watch the full interview Cointelegraph YouTube to see why Wall Street joined YouTube “debasement trade” — and what it could mean for Bitcoin in the years ahead.
Related: Mt. Gox delays $4B Bitcoin repayments: Bullish or bearish for BTC price?
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Source: cointelegraph.com
