OpinionBitcoin price will Rise as a Result of Hyperinflation

Bitcoin price will Rise as a Result of Hyperinflation

Bitcoin price will rise as a result of Hyperinflation, Murad describes how this might occur, how ordinary people are affected by inflation, and what potential role bitcoin might play in this situation. In an interview with Anthony Pompliano, Murad Mahmudov was asked what the global hyperinflationary type event would look like or what would you be looking for to say yes it’s happening now.

He said First of all I think we’re kind of in the early innings of it, of course, it’s not going to be an overnight thing it’s more likely to kind of also come sort of in these waves of increasing and reducing inflation. We’re already seeing inflation at like 42-year highs and personally kind of the official government statistics that we’re seeing in the world. I think those are further sort of artificially lowered, I think just by looking at the food prices and the real estate prices that I myself am experiencing I would say things are kind of slowly getting out of control.

Bitcoin price will rise as a result of Hyperinflation: Now people think that it’s because of supply-side reasons I still think that the majority driver of that is sort of the insanely aggressive monetary expansion that we’ve seen sort of spring 2020 onward. Essentially there’s a kind of one of the less spoken about debates in the bitcoin world is whether the transition from fiat to crypto whether it’s going to be a peaceful one and there’s definitely a path for that as well it’s going to be more turbulent.

Now in the last three or four months, we’re already seeing sort of some civil unrest around the world Albania, Sri Lanka, Tunisia, Kosovo, Serbia, etc. If you look at history rising sort of bread and energy prices have always been the biggest and the most frequent sort of cause of any kind of upheaval or unrest. So definitely just something to consider definitely something to think about as we sort of move forward in this age of rapid change.

I would say talk to me about the central banks around the world and their role through market intervention in creating some of these scenarios versus is it external shocks and external event developments that they’re simply trying to respond to and you can’t really lay fault or blame with the central banks for either the 40-year high of inflation that many countries are seeing or things like a potential recession which I would argue is a recession in the united states 

So I believe that a fractional reserve-based banking system cannot survive without intermittent interventions of central banks in the economy. As I’m sure many other guests on your podcasts have alluded to in the past this creates all kinds of distortions when it comes to sort of the correct pricing of goods.

Bitcoin price will rise as a result of Hyperinflation: More importantly and something that’s less talked about I believe that the government intervention in the currency markets makes inflation a lot higher than it has to be, which in turn I believe is kind of the primary cause of mental health issues, stress, anxiety because essentially it forces you at the margin to prioritize short-term projects over long-term projects. And because of that people essentially not just financially but also psychologically are essentially like living week to week if not day to day and that creates a lot of discomfort in people’s minds.

I think that this is one of the 12 13 things that is is less discussed and something that hopefully will change for the better once we kind of move to sound or system in the coming years. As I mentioned a couple of times that transition could be peaceful or it could be a little bit more turbulent. 

So what does the peaceful transition look like is it just people start buying something like bitcoin and over time the percentage increases and then everyone starts using that and then also what does the turbulent time look like in your opinion given the facts and information that we have today?

So I guess I kind of described a similar metaphor a few years back but effectively both fiat and bitcoin are just two balloons right and with every boom and bust cycle that we have in bitcoin effectively the peak of each of the bull cycles is essentially an attention wave, and with each of those attention waves usually the majority of new participants of each generation in bitcoin cycles predominantly comes at the top and it’s designed to be that way because with the top comes the greatest amount of hype news marketing attention. 

Read: Will Bitcoin Survive during Recession?

And each of these sorts of heartbeats so to speak brings more people from the fiat balloon into the bitcoin balloon. The peaceful scenario is one where that transition happens sort of gently, slowly gradually, and instead of a large number of people in the world being caught off guard by sort of the entirety of the current monetary paradigm sort of blowing apart you have a relatively sizable chunk of them already in the bitcoin system or in the cryptocurrency system. The infrastructure to move from one to another is already sort of very well established and sort of that movement of air so to speak from one balloon to another it happens gradually, steadily, peacefully, and fiat instead of exploding so to speak slowly sort of fades into irrelevance instead.

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I don’t know how realistic that is, of course, that is the preferable way but I think a darker pill so to speak is that they exist the very existence of bitcoin is probably going to end up accelerating more rapidly and sort of explosive collapse of the current monetary system. Now we don’t know when that’s going to happen but like I said I think it’s going to happen in the next several decades personally I lean towards the sort of a more turbulent scenario.

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