There are two ticking crypto clocks headed toward an explosion: the innovation clock and the inflation clock.
Cathie Wood, CIO of Ark Invest, has firmly placed her bets on the innovation side. Disruption through innovation cuts through inflation by balancing out inflation’s price increases with productivity gains. If productivity increases at a rate of 3%, for example, this will help tone down the rate of inflation as such productivity increases give companies the ability to reduce prices. Michael Burry, famous short-seller portrayed in the movie The Big Short, is of the belief that we have entered point-of-no-return inflationary pressures. And that such inflation will lead to hyperinflation, beyond what innovation could counterbalance. In such a scenario, growth stocks collapse; in fact–the whole market would collapse.
Which crypto time bomb will explode first, the detrimental bomb of hyper inflation? Or will it be the mega boom cycle of innovation?
Bitcoin, and other inflationary resistant cryptocurrencies, are a solid, long-term investment either way. On the innovation side… peer-to-peer transfer is extraordinarily productivity enhancing; while on the inflation side, Bitcoin counteracts the inflationary pressures of money printing with its fixed supply of 21 million. Thus, crypto may win in both scenarios.
Check out the below video for analysis of innovation vs. inflation.