If you haven’t heard yet, Warren Buffett is sounding the alarm on inflation. All of a sudden it’s become a widely discussed topic.
The general public is waking up to the fact that prices are rising rapidly. For most people, this is a surprise. And their investment portfolios aren’t prepared for inflation.
This is going to continue to drive bitcoin adoption. We’ve been waiting patiently for this for years. It was inevitable.
Some economists are still saying the inflation will be “transitory.” I think they mean that it will be a short-term occurrence. But I don’t agree.
From now on the government has to keep its finger on the money printing button. Any significant increase in interest rates would likely devastate stocks. And if the government increases deficit spending even further to keep growth alive, inflation will continue. I think having solid hedges against inflation in your portfolio will be crucial in the coming years.
If your only hedge is bitcoin, I strongly suggest adding some gold and silver. I’m buying physical coins/bars and mining companies. Some stocks I like are KL, PAAS, SGDJ and WPM. As investors wake up to the realization that inflation is probably here to stay a while, precious metals will become increasingly attractive.
Combined, bitcoin and precious metals make very nice hedges.