Source : coingape.comhttps://cdn.coingape.com/wp-content/uploads/2022/04/05174640/Michael-Saylor.webp
MicroStrategy’s CEO Michael Saylor believes an increase in inflation will weaken the global currencies and will lead to the adoption of digital assets such as Bitcoin and other cryptocurrencies. The surge in food and oil prices will impact the economy and public debt as governments adopt subsidies and tax breaks. Bitcoin evangelist Michael Saylor has recommended bitcoin as an inflation hedge and a store of value to investors, economists, and financial institutions.
Surge In Inflation Favors Digital Assets- Michael Saylor
Michael Saylor announces in a tweet on Monday regarding the surge in food prices and oil prices around the world driving the adoption of digital products, digital services, and digital assets as governments face rising debt.
“The surge in food & fuel prices is going to further weaken global currencies and encourage the imposition of capital controls, price controls, & export controls, favoring a strategy based on digital products, digital services, & digital assets.”
Michael Saylor cites a Wall Street Journal article on how rising inflation is weakening global currencies and increasing public debt as governments roll out subsidies and tax breaks. Moreover, he thinks governments’ control of the capital, price, and exports will drive the adoption of digital products, digital services, and digital assets.
The increase in food prices and oil prices have provoked protests around the world. The governments are forced to continue their subsidies, resulting in an increase in government spending. Thus, increasing public debt.
Some countries can manage the rising inflation up to a limit by increasing interest rates and inducing monetary easing. However, poor countries and debt-ridden countries are facing major challenges amid rising inflation.
A Shift Towards Crypto Adoption
Many countries such as El Salvador, Ukraine, and South Korea among others have already pushed for crypto adoption after facing rising inflation and increasing public debt. Business leaders such as Microstrategy CEO Michael Saylor, Elon Musk, Michael Novogratz, and others have already advised investors and governments on the benefits of cryptocurrencies, including Bitcoin.
Global financial institutions such as BlackRock, Morgan Stanley, and JPMorgan are looking to invest in cryptocurrencies as interest in digital assets grows among their clients. Meanwhile, IMF warned about growing crypto adoption and decreasing U.S. dollar dominance as a result of the Russia-Ukraine war.