Bitcoin as an Inflation Hedge – What Were Jim Cramer and Pomp Talking About?
Finance, General - September 24, 2020
What is inflation? What causes inflation? How does inflation affect Bitcoin? These are three important questions CNBC analyst and Mad Money star Jim Cramer and Anthony Pompliano discussed on the Pomp Podcast. In this video, we break down the important points and how this will affect Bitcoin.
Inflation simply means a decrease in the value of money. When the price of everything from milk to cars go up, its inflation. This happens when more money is being printed. Inflation is a big problem now because 20% of all dollars in existence were printed in 2020. That means the price of daily products and services are going to go up. How
One of the ways to combat this is by investing in an asset that can fight inflation. Jim Cramer discussed six such assets – commodities, real estate, art, municipal bonds, dividend-paying stocks, and Bitcoin. In the podcast, he details why he put Bitcoin in the list.
Bitcoin makes it to the list not only because of its historic price appreciation. Bitcoin has a limited supply, only 21 million can be mined. Its value is measured in dollars, which have an unlimited supply. Beyond this, it actually has utility. You can use it as a means of payment and more. Lastly, it can be passed down to your kids as an inheritance. But always remember to keep your private keys safe.
Enjoy the video and the podcast!
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