According to Blockstream, Adam Backin may begin to take part in the market in gold as protection against inflation and geopolitical uncertainty.
Speaking during the Fireside chat with the editor -in -chief of Cointelegraph Gareth Jenkinson on Paris Blockchain Week 2025, Back said that growing inflation and monetary instability in global economies will cause wider Bitcoin (BTC) adoption.
He compared cryptocurrency with gold, paying attention to its deficiency and growing recognition as a warehouse of value despite 30% correction from the highest level above USD 109,000.
“Bitcoin has the advantage that it is like gold – it is a rare advantage, but also passes the adoption curve,” he said.
Inflation still harasses the global economy, with main currencies, such as the American dollar and the euro, see that their supplies have increased by more than 50% in the last five years – development that can lead to Bitcoin’s acceptance as a security against monetary destabilization, according to return.
“After all, this money is used to buy all goods. In the end, especially hard assets, such as apartment, everything physical,” said Back. “The inflation rate is probably 10% or 15% in the next decade, which is very difficult to obtain housing or housing rents.”
“So there is a real prospect of competing bitcoins with gold, and then starting to take some cases of use of gold, for example as a geopolitical hedge, take some of that money for bitcoins.”
Adam back during a chat with Fireside with Gareth Jenkinson with Cointelegraph. Source: Cointelegraph
Related: Satoshi Nakamoto turns 50 years elderly when Bitcoin becomes an American reserve resource
The Cleveland Federal Reserve Bank expects the 10-year inflation rate to be an average of 2.18% per year, According to to data published on March 12.
Inflation projections. Source: Bank of Federal Reserve Cleveland by Fred
However, alternative data indicate a potential escalate in inflation over the next five years.
The expectations of consumer inflation increased to 5% for the next year and 4.1% in the next five years, according to consumer research from the University of Michigan, which is an escalate in economic concerns. published March 28.
Consumers; Expected change of inflation indicators. Source: University of Michigan
Related: Like $ 100,000, Bitcoin affects the gap of wealth in the digital era
Bitcoin adoption assisted by ETFS and change of policy
In addition to growing monetary instability, funds based in the American Bitcoin (ETFS) and more cryptocurrency American administration under President Donald Trump can facilitate escalate Bitcoin adoption as inflation protection.
“In the American regulatory bodies, ETF approved, and the current US administration under Trump removes many negative regulations that were to slow down cryptocurrency reception – such as ChokePoint 2.0 surgery,” said Back.
Return argued that the adoption of Bitcoins among private investors should precede institutional or government accumulation:
“I prefer these people to buy bitcoins before the rule, because as soon as the rule they buy, they will probably create a wave of other governments competing with them.”
Source: Margo Martin
On March 7, President Trump signed an executive order to create a Bitcoin reserve vaccinated with bitcoins confiscated in criminal matters, which the industry leaders called the main step towards Bitcoins integration with the customary financial system.
https://www.youtube.com/watch?v=ddvtoz5kqt4
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