Attempts by the US government to improve the country’s current economic situation could eventually lead to a stronger adoption of Bitcoin (BTC). This according to Bill Barhydt, CEO of Cryptocurrency Exchange and Wallet Solution, To open.
“I think this is a defining moment for Bitcoin as a new asset class.” Barhydt told the co-founder of Morgan Creek Digital: Anthony Pompliano, during an interview on the August 13 podcast. Barhydt cited the US government’s goals for deliberate inflation as the basis for his thesis.
As part of the justification for his claims, Barhdyt mentioned the rumors of the US government’s next target of 4% inflation. According to the CEO, the territory is outrageous in terms of deliberate inflation. “They feel like they have no choice but to inflate the economy to generate growth.” added.
In the midst of the COVID-19 pandemic, the U.S. government seemed to have had constant discussions about various corrective measures to revive a sinking commercial ship. One of his recent efforts has been to purposely raise inflation. According to a CNBC article dated Aug. 4.
“Your stated goal was and never is to protect the value of your money or your assets”, Said Barhydt, referring to the United States government. “By definition, they are willing to undermine the value of your money to create movement in the system that creates growth.”
Barhydt said the US dollar has lost 99% of its value over the past century, showing that governments are not afraid of inflation. An inflation calculator on Saving.org shows that $ 1 in 1920 had the same purchasing power as $ 13.60 in 2020.
“We have never had a better time for Bitcoin to showcase its properties, not that it needs our help, but that Bitcoin is establishing itself as the de facto solid digital asset that I believe will become.” said the CEO. “I’m not sure it needs a push from our government, but it gets it anyway.”
Bitcoin is a deflationary global capital with limited supply and not tied to a government, making it a possible hedge of government currencies. Pompliano also previously spoke about the concept of inflation, pointing out the importance of switching from cash to other assets like BTC.