The CEO of the investment company ByteTree considers gold and bitcoin the best insurance against economic shocks, but he is sure that too much depends on the policy of the US Federal Reserve and central banks.
Charlie Erith stated that ByteTree is confident that bitcoin gold will be an important component of investment portfolios for many years to come. Not because they are guaranteed to increase in price, but because in an era of inflation they work as insurance against mistakes.
Both assets perfectly complement each other, allowing you to feel secure both in the traditional financial system and in the emerging new digital one, the expert believes. At the moment, says Erit, we are seeing some slowdown in inflation, but the battle is not yet won:
“On the one hand, if politicians relax regulatory measures, inflation will flare up again. On the other hand, the Fed and other central banks convince themselves that the battle is won and change the direction of financial flows, after which inflation starts again.”
Founded in 2014, ByteTree provides investment solutions and collects data on institutional grade crypto assets in bitcoin and other cryptocurrencies, as well as gold and silver for the digital asset market.
As good as gold and bitcoin are at risk hedging, a lot depends on central banks, which are faced with a difficult choice: to bring down the global economy or “feed the inflation tiger,” Erit argues. Any indication that inflation is finally under control will be taken as a victory, regulators will be relaxed and inflation will start again, the CEO fears.
Earlier, cryptocurrency analyst Benjamin Cowen said that the bitcoin rate is directly related to the stock market and inflation, and will fall until inflation starts to weaken.
Source: Bits
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