Michael Saylor Applauds Bitcoin As U.S. Inflation Hits New 40-Year High
MicroStrategy’s creator remains one of the most prominent proponents of the first cryptocurrency. Michael Saylor has often praised bitcoin, which he considers to be the finest investment, in the past.
Now, when inflation in the United States reached a new four-decade high, the longstanding bitcoin maximalist has once again spoken out in support of the cryptocurrency.
Saylor Praises Bitcoin
The newest data provided by the U.S. Labor Department reveals that the widely observed consumer price index (CPI) increased by 1.3% in June, driving the 12-month rise to a record 40-year high of 9.1% This is 0.3 percent more than the 8.8 percent expected by the market.
Michael Saylor went to Twitter after the inflation data was released to discuss the actual worth of bitcoin. Saylor observed that major global reserve currencies such as the Australian dollar, the British pound sterling, the euro, and the Japanese yen are already dropping rapidly against the U.S. dollar. However, people will quickly discover that one bitcoin is comparable to one bitcoin.
Saylor states that he does not relate the price of bitcoin to fiat currency. Moreover, despite the adverse macroeconomic environment that has exerted pressure on the bitcoin exchanges, its true worth remains unaffected.
In response to today’s inflation data, the Federal Reserve will likely continue to aggressively raise interest rates in an effort to reduce the amount of U.S. dollars in circulation. Theoretically, this should reduce consumer demand for goods and services and bring inflation under control.
During the epidemic, the U.S. central bank and other banks across the globe embarked on a money-printing binge. As a result, Bitcoin saw a tremendous increase in value. There was an unproven theory at the time that the benchmark cryptocurrency would operate as a hedge against inflation due to its limited quantity of 21 million coins. Industry experts suggested that it would operate as gold and safeguard investors from price increases.
Now that the Fed has committed to raising interest rates to combat the biggest inflation since the 1980s, the original cryptocurrency is on course for its worst quarter ever. Bitcoin fell to a low of $18,912 on Wednesday after the release of the study before recovering marginally. In the meanwhile, MicroStrategy’s BTC assets have incurred a paper loss of almost $1 billion. The company presently has 129,699 bitcoins.