According to Mike McGlone, deflation might replace inflation next year, causing bitcoin’s price to rise to $100,000.

Mike McGlone, a senior commodity strategist at Bloomberg, believes that Bitcoin and gold will have a good year in 2022. He predicts that the principal cryptocurrency will exceed $100,000, while gold will price at $2,000 per ounce.

What Will Drive Bitcoin’s Upward Trend in 2022?

The present global financial system is going through some difficult times. Many businesses were forced to temporarily halt operations or send their employees to work from home due to the COVID-19 outbreak and the resulting health concerns. This caused immediate disruptions, slowed output and laid the groundwork for future monetary problems.

Several central banks began creating large quantities of fiat currency simultaneously to ease some of the short-term pain. However, as a result, the inflation rate soared to levels not seen in decades. It is already above 6% in the United States, the highest level in 40 years.

While national currencies, such as the US dollar are losing buying power, many people see bitcoin as the polar opposite. It is an inflationary asset at the moment. However, its limited quantity of 21 million coins provides it a reliable scarcity, making it an appealing investment instrument that many individuals used during the recent financial turmoil.

Nonetheless, Bloomberg’s Mike McGlone forecasted that deflationary forces would triumph next year, halting the global spread of inflation. This procedure may assist the major cryptocurrency in reaching a critical milestone in its USD development, namely $100,000. According to the expert, the same forces will drive gold to $2,000 and oil to $50.

Bitcoin as a Hedging Instrument

According to a recent Bloomberg report, many investors use bitcoin to insulate themselves against growing inflation. The dominant cryptocurrency was even dubbed the finest inflation hedged around by the corporation.

Many important figures, like Anthony Scaramucci, Paul Tudor Jones, and Barry Sternlicht, embrace that BTC represents such an option. Jordan Peterson, a professional psychologist and well-known YouTube celebrity, joined this group.

Peterson claimed he acquired additional bitcoin after speaking with Dr. Saifedean Ammous, who indicated that bitcoin is the most potent defense technology against inflation.

Following that, Bloomberg journalist John Authers calculated that BTC had seen 99.996 percent deflation over the previous ten years, implying that the price of a single coin in 2011 is now just 0.004 of what it was in 2011.

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