Why, according to experts, rising energy prices could inspire Bitcoin
The macrost strategist Luke Gromen believes that rising energy costs could pave the way for a dramatic increase in Bitcoin and gold, since inflation pressure shake trust in traditional financial markets.
In a recently published Contribution Gromen argued that an increase in oil prices often leads to inflation and maneuvering the central banks into a dead end. If the energy costs rise in Fiat currencies, the value of real assets such as gold-and increasingly also from Bitcoin. According to Gromen, the decisive trigger is the development of the bond market in such scenarios.
If the energy prices rise so much that they aggressively heat inflation, according to gromins, the bond dates become intolerable without interventions. In this case, the central banks usually use money creation so as not to drive the returns further – a measure that weakens the currency and makes non -state assets more attractive.
In his opinion, Bitcoin should benefit considerably. It is not only more scarce after stock-to-flow standards than gold, but its basics are also directly connected to the energy sector: the breakdown of BTC requires enormous power consumption, which means that it has a unique connection to physical energy.
In a future in which governments are forced to print more money to keep the system going, gromen sees assets without a risk of opposite – such as gold and Bitcoin – as the likely winners.
