Bitcoin has now evolved into a global asset, with multiple use cases coming up explaining why Bitcoin is the best asset against inflation right now. While cash has the tendency to erode every year, the affordability of the cash system slips each year. BTC now stands at a stage where it is being positioned as the leading asset worth keeping an eye on. Here’s billionaire Rob Baron explaining why the days of using cash are numbered now.
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Cash Melts While BTC Lives: What’s Happening
Billionaire Ron Baron, in his latest video interview with CNBC, explained how Bitcoin should be the greatest hedge against inflation right now. Baron stated how money loses 4 to 5% of its value to inflation, as the economy grows by 2% every year.
This perplexing meltdown is resulting in money erosion, where affordability is being trumped by rising inflation.
In Baron’s exact words, money depreciates every year as compared to Bitcoin, an asset that has the potential to safeguard wealth against inflation-centric erosions.
“What happened is the value for money falls four or five percent a year; that’s inflation. Falls four or five percent a year, and the economic growth has been about two percent a year. So it’s about seven percent a year growth, and that means everything doubles in ten years, and the value of your money falls in half every 15 years. So you’ve got to make twice what you’re making today in 15 years to stay even. And so the stock market, you know, so Bitcoin’s been amazing, obviously.”
Bitcoin for the Long Haul?
According to Charles Hoskinson, founder of Cardano, Bitcoin is meant for the long haul. Hoskinson urged investors not to panic over “red candles” and wait for Bitcoin to show its true sentiments in due time.
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