There is very little time left before we enter the year 2022. In response to the anxiety brought on by the worldwide economic uncertainty, investors are looking for a safe haven. An expert said that he thinks gold and Bitcoin can protect people against these concerns.
Alex Mashinsky: Only gold and Bitcoin will protect….
Celsius Network CEO Alex Mashinsky said that 2022 will be the year of increased volatility due to rising fears over the latest Covid’s Omicron variant, as well as rising inflation and forecasts for the Federal Reserve to tighten monetary policy. According to Mashinsky, who says that only gold and Bitcoin will protect against what will happen, the key is to look at which economic scenario is most likely and act accordingly. At the time of writing, Bitcoin (BTC) is trading at $ 49,229, while the price of an ounce of gold is around $ 1,790. The expert name uses the following expressions:
If there is a lot of volatility [and it goes into double digits] because inflation is out of control, then gold and Bitcoin will become safe assets. But if there is single-digit inflation and the Fed is fighting it, then all assets will really depreciate because everyone will suffer. If the opposite happens… If the Fed decides that inflation isn’t a problem and can hold out longer in that situation, then all asset prices will go up. So we have a few scenarios here, and each month we have to watch what happens very carefully and make decisions accordingly.