Bernard Connolly believes that the price of Bitcoin will rise infinitely or worthlessly
One of the most commonly cited advantages of Bitcoin over fiat money is that fiat money can be subject to inflation or depreciation over time. On the other hand, Bitcoin creates a hedge against inflation with a fixed offer of 21 million, according to the Bitcoin maximalists.
Bernard Connolly – Independent Financial Analyst, formerly with the European Commission.
However, not all economists agree on this point. The British economist Bernard Connolly, for example, criticized Bitcoin in one items recently titled “How a Bitcoin Bubble Could Lead to Hyperinflation” was published. According to him, various institutions need to stop the “crypto bubble” before it’s too late. He also recognized a major cause of the growing imbalance in the economy, alluding to inflation.
According to Connolly, the US Federal Reserve (Fed) led by Alan Greenspan:
“Didn’t let long-term real rates rise at the right time to meet the huge business expectations in the new internet-driven economy.”
This has led to a “misallocation” which leads to a deficit in consumer spending.
Connolly also offers an interesting perspective on Bitcoin, saying:
“Bitcoin will rise in price to infinity or be worthless. There is no point in between. “
If Bitcoin is worthless, the price of BTC will eventually fall or be supported by large institutions like the central banks themselves. However, if Bitcoin goes up in price, it could be an asset that “depletes all of the world’s productive potential”. According to Connolly, this could lead to a BTC war among the owners, and if that happens it could “make the poor poorer and poorer”. This is another reason for the “crypto bubble” to end its existence.
“But if the bubble continues to grow, they will have to boldly face hardship and losses now or face stiff competition in the future to convert their crypto holdings into goods and services, which will create hyperinflation and destroy society.”
Connolly’s criticism of Bitcoin went unnoticed and also met resistance from the crypto community.
Prepare for this fake media headline: Bitcoin will destroy the global economy.
Make no mistake – the central banks are causing this mess. Period
They cause global social unrest, division, polarization of wealth, etc. https://t.co/ltH3ZJJYXj
– Preston Pysh (@PrestonPysh) July 10, 2021
“Prepare yourself for this false media headline in the future: Bitcoin will destroy the world economy.
Make no mistake – the central banks are causing this mess.
They cause global social unrest, division, polarization between rich and poor, etc. “
In the coming months, attacks on Bitcoin and, to some extent, the entire crypto ecosystem will become much more aggressive
Elites and their institutions are preparing for hyperinflation and they will crush the middle class to own all productive assets
21st century feudalism
– Meltem Demir ◎ rs (@Melt_Dem) July 10, 2021
“In the coming months, the attacks on Bitcoin and in part the broader crypto ecosystem will be much stronger.
The elites and their institutions are preparing for hyperinflation and they will crush the middle class to own all useful assets.
21st century feudalism
Taking a closer look at inflation, a recent Bank of America (BoA) survey found 81% of fund managers believe that Bitcoin is in a bubble. In addition, the following graphic shows statistics based on the US Index of Consumer Prices (CPI) from 2010 to 2021 with additional projections until 2026.
US CPI measures vary with the prices of consumer goods and services purchased by different households, an important factor in calculating inflation and economic prosperity. As seen above, inflation will only continue to rise, impacting wages, social security payments, and pensions in the U.S. community.
Countries like Argentina and Venezuela suffer from high inflation. In Venezuela, money printing has led to a dramatic rise in food prices over the past year. The International Monetary Fund (IMF) reports that the inflation rate in Venezuela is 6,500% in 2020.
Source: coin dance
Using cryptocurrency could prove to be a better option for Venezuelans as the country continues to suffer from severe political and economic instability. Strict regulations have not prevented them from using cryptocurrencies.
According to AMBCrypto