Central banks are trying to "thread the needle" so to speak walking this fine line trying to get inflation down without causing a recession in the process.

Essentially as it stands right now if interest rates are lowered too early they will reignite inflation causing runaway inflation to even higher levels than we previously experienced, if they keep interest rates too high for too long they will cause something in the financial markets to break triggering a financial crisis and subsequent recession.

In both scenarios bitcoin does well. If we go straight into runaway inflation bitcoin will rise more than any other asset. If we go straight into a financial crisis bitcoin is the safe haven asset that protects you from failing financial institutions and banks.

Going straight into runaway inflation means stocks and realestate will rise but bitcoin will rise far more. Going straight into a financial crisis means stocks and realestate will fall and while bitcoin may fall initially it will rise massively following the crisis while stocks and realestate languish exactly like gold after the 08' crisis.

In either scenario your bitcoin will buy so much more realestate and stocks than it does today. Meaning no matter what happens bitcoin is the best possible asset to own in this current environment where the outcome could either be runaway inflation or a global financial crisis.

submitted by /u/slvbtc
[link] [comments]

Source and link to Reddit topic: No matter the outcome (runaway inflation or a financial crisis) bitcoin is the single best asset to hold

Author: Reddit.com