Neither SHIB nor Bitcoin! Famous CEO: This Should Be In Every Cart!

Bitcoin: After US inflation climbed to historic highs, the Fed took a historic 75 basis points step. The Fed’s efforts to contain inflation are a hurdle for gold. However, it has more devastating effects for the crypto market, especially Bitcoin. In this environment, a famous CEO does not even mention Bitcoin (BTC) next to gold as a value.

Inflation monster, gold and Bitcoin

US inflation is currently 8.6 percent. “We’re seeing the inflation monster just getting started,” says Randy Smallwood, President and CEO of Wheaton Precious Metals. In addition, Smallwood notes that it is even possible to see 15-20% inflation rates. The famous CEO emphasizes that the Federal Reserve’s loose monetary policy and supply chain shortcomings contribute to higher prices.

However, Smallwood says that gold, especially in the form of gold streaming companies, can protect investors against inflation. On the other hand, Bitcoin, seen as digital gold, failed to protect against inflation as expected. Bitcoin has lost more than 30% of its value in just one week and has fallen out of favor. The depreciation of the leading crypto also dragged the market after it. The crypto market slumped below $1 trillion in the last jolt.

“How far can the Fed go…”

AmkNews.comAs you follow, the Fed recently increased its key policy rate by 75 basis points. Smallwood says that while he thinks this will help, it won’t be enough to curb inflation. The famous CEO explains the issue as follows:

I don’t think it’s over yet to see the peaks of inflation. There will be a lot of support for the US dollar from the Fed. But I don’t know how far they can go before they become dangerous. I think what you’re going to see is a deep recession, a decline in growth. Because the cost of money will become more expensive compared to inflation.

“Gold, not Bitcoin, should be part of a good portfolio”

The World Gold Council, an industry group chaired by Smallwood, recently released its survey of central banks. The survey revealed that 25% of central banks buy more gold as a hedge against inflation and geopolitical uncertainty. Smallwood says the following about it:

The central bank’s gold purchases are a really good indicator of what some of the world’s leading economists believe in what it takes to maintain a sense of stability. Maybe central banks know something. Gold should be part of everyone’s portfolio in times of conflict.

bitcoin

Does the dollar have a future as a reserve asset?

Inflation erodes purchasing power. In this environment, Smallwood predicts that the US Dollar will lose most of its value. Regarding this, he makes the following statement:

So all you have to do is look at central bank purchases. Instead of giving support to the US dollar, they are actually loading into gold. I strongly agree with the argument that ‘the US dollar’s status as a global reserve currency is becoming more and more unstable’. I would describe the US Dollar as the best of the bad apple bunch. It just doesn’t have long-term sustainability.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing amknews.com site 3 months ago.