BTC
🚀 Bitcoin and gold serve as effective hedges against monetary inflation, which is the increase in asset prices due to money creation.
💰 Bitcoin is three times more sensitive to money creation than gold, making it a potentially stronger hedge in times of monetary expansion.
📉 While Bitcoin offers higher potential returns, it also comes with higher volatility, requiring a long-term investment perspective.
@Javierlinares:
“So, gold and Bitcoin are good hedges against monetary inflation. Monetary inflation is different from the inflation of the real economy. Inflation of the real economy is what you see when you go to the supermarket. Monetary inflation is a rise in asset prices. So, Bitcoin and gold are very good, good hedges against monetary inflation. I don’t know about you, Javi, but I think we are going to see monetary inflation forever, because of everything we have been talking about, about the creation of new money. So, if that’s the case, I want a hedge. Bitcoin is three times more sensitive to money creation than gold. So, if I have the perspective that there will always be creation by central banks, because of what we have already discussed, I want to position myself in an asset that benefits me. So, gold is good, of course, it’s good, historically fabulous, and it has many years of history. Bitcoin, three times better in the rise. Of course, but when there is a price correction, it will fall three times more than the rest of the assets, right? So, you have to take that into account. But if your permanence in the market is the same as I have, for example, which is when I retire, or even pass it on to my daughter, then these intra-year corrections, yes, they hurt me. I stop looking at my position so as not to have a bad weekend, but I know that in the long term, it will recover, right? So, they are good assets, the best, I would say, those two. I have them, I have them, and well, it’s simply a matter of what your vision is of what is going to happen with respect to monetary inflation.”
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