Economist and crypto trader, Alex Kruger has presented compelling arguments for why Bitcoin (BTC) should be viewed in a more positive light. The popular economist has emphasized the significance of holding Bitcoin, inadvertently encouraging investors to acquire the pioneer cryptocurrency as a safeguard against the devaluation of fiat currencies.
Bitcoin As A Hedge Against Dollar Devaluation
On July 24, Jedi from the YouTube channel, Blocmates Orange hosted an exclusive interview with Kruger and Rich Rines, a founding contributor of Core DAO. While speaking on the potential for a Bitcoin super cycle and deducing the cyclic halving events, Kruger also shed light on the importance of BTC as a hedge against United States Dollar (USD) devaluation.
The economist argues that Bitcoin should be seen in the near future as a hedge against extreme risks related to the potential collapse of central banks and dollar devaluation. He further emphasized that the need for such a hedge often manifests suddenly, suggesting that Bitcoin could become a crucial safety measure if the value of the dollar falls.
Currently, the US national debt has surpassed $35 trillion, reaching unprecedented levels. Moreover, this staggering figure could potentially increase, driven by the substantial budget deficits that outstrip the country’s economic growth.
In light of the increasing risk of a debt crisis, Kruger disclosed that investing heavily in Bitcoin becomes more advisable to protect against financial losses. He made emphasis on US Senator, J.D Vance, highlighting that Vance has spoken publicly about a potential dollar devaluation, highlighting the risks and dangers that it could pose in the US.
Moreover, Kruger expressed hope that the US would potentially begin to incorporate and invest in Bitcoin in the near future. He noted that Bitcoin was not just a hedge against dollar devaluation and the collapse of central banks, but it could also transform into a reserve asset and an important store of value for investors.
“If ever we get to the point where we are very concerned about the value of the dollar and or the sustainability of debt, which is already happening, you want to be long Bitcoin, and you want as much Bitcoin as possible,” Kruger stated.
Bitcoin’s Role As Digital Gold Over Payment Method
While speaking on Bitcoin’s potential to become a valuable hedge, Kruger exclaimed that he did not view Bitcoin as a payment method within the crypto space. Rather, the economist saw the pioneer cryptocurrency as a digital gold in the process of global adoption.
As a payment method, Bitcoin’s price volatility and slow transactions pose a problem compared to other faster and less expensive crypto payment alternatives. However, being considered as a store of value similar to gold, Bitcoin could be used to preserve wealth over time, potentially increasing its chances of being a recognized and globally accepted asset.
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https://ift.tt/xuYKbhU July 31, 2024 at 01:30AM