Bitcoin’s real-life applications have always been a subject of debate. However, many people see bitcoin investments exclusively as a hedge against inflation. In many ways, Bitcoin is like gold since both do not have any use in the absence of demand. With its similarity to gold, Bitcoin is also becoming a primary investment option for hedging against inflation. However, Bitcoin seems to be gaining favor among fund managers as it is proving to be a better hedge against inflation than gold.
Among many others, Galaxy Digital Holdings CEO Mike Novogratz believes that the future of managing funds will be in Bitcoin. Unlike gold, Bitcoin has growing demand and multiple use-cases. Skybridge Capital founder Anthony Scaramucci believes the same as well. According to him, Bitcoin is better than gold as a hedge against inflation from many perspectives. He also believes that Bitcoin is at a very low price right now and investors should add it to their portfolio. In the foreseeable future, Bitcoin can hit as much as $500K, according to Scaramucci.
If Bitcoin continues its rally and overtakes gold as the standard hedge against inflation, it will have a slow but paradigm-changing impact on how human societies operate. Since antiquity, gold has been an object of desire and almost always represents wealth. With gold going obsolete, human culture will change as much as economic systems. According to leading fund managers, that is the future we are heading towards.