Famous economist and gold promoter Peter Schiff shared information on the tweeter explaining why high inflation will not affect the price of bitcoin.
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Bitcoin is not a protection against inflation
The world-famous economist Peter Schiff has found another opportunity to stick a pin in Bitcoin for the next time - something he has been doing openly for some time now.
The gold fan in his tweeter said that inflation will not increase the price of the most popular cryptocurrency.
Inflation results in higher prices for goods. Since #gold is a good, its price rises along with the price of other goods, preserving its relative purchasing power. Since #Bitcoin is not a good, its price does not relate to the price of other goods. So it's not an inflation hedge.
— Peter Schiff (@PeterSchiff) May 15, 2020
Bitcoin is a deflationary asset. Its inflation is falling because its supply is capped at 21 million. Bitcoin will no longer be extracted if the system is not forked and changed. ...Bitcoin's purchasing power will increase when it'll be seen as a currency...
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Bitcoin is store of value, just like gold
In the words of the Economist there is a little truth. Higher inflation does not necessarily have a direct impact on the price of a cryptocurrency.
However, Bitcoin is considered by many to be digital gold. Even the president of the US Federal Reserve called it "speculative store of value, just like gold."
Many experts are right that Bitcoin can be used as a hedge against financial markets. Some well-known investors, such as Paul Tudor Jones, have announced that they hold some of their assets in Bitcoin. Jones said he is buying more bitcoin to fight with inflation.
