“Bitcoin is an inflation hedge” is something you probably heard at some point. No wonder, given that inflation for the year which ended March 2022 was an average of 8.5% as per the consumer price index. Since then, it’s remained high. A hedge against inflation is something a lot of people want right now.
To beat inflation, what you need is an asset so good, that gains value so quickly, that it can grow faster than the prices on basic goods.
And so far, that’s been Bitcoin. As of right now, dating back to January 3, 2009, Bitcoin is the most successful single asset in known human history. So far, that’s been the case. At that date, it was worth just a penny. That’s 2,000,000X gains in less than 15 years.
Not two-million dollars in payout. Two million times gains. Even the most impressive traditional stocks can’t even begin to approach that. Let’s look at Google. Absolute cornerstone of the modern tech economy. Gone up more than ten times since January 2009. Nothing compared to Bitcoin.
If you want to beat inflation, that’s how you do it. Betting on the next most successful asset in history, or even having an asset of that magnitude come by at all, is not something we can count on. I still think Bitcoin makes a good portfolio anchor with strong growth potential, but it’s no longer the next best and newest thing.
If we really want something that can outrun inflation by the biggest possible margins, we need high-value assets that are just getting started…
Inflation-Proof Growth
But the basic premise is still the same. The only way to come out ahead of inflation is to outrun it. Put your wealth somewhere where it will grow faster than consumer prices. That’s what Bitcoin did. That’s what crypto can still do for us.
If there’s one thing that we can learn from crypto, it’s the importance of being early to the party. The dream of always being one step ahead, buying right before a massive rally and selling right before the collapse, is just that, a dream.
It’s impossible to reliably see movements like that coming, and far more likely you’ll end up ruined. Time in the market always beats timing the market.
Since Bitcoin is already out of the bag, we need to look for the next great assets. That’s why I put special emphasis on A.I. coins, which underly the tech which I expect to see transform every aspect of life as we know it. They may not do as well as Bitcoin, but I expect at least some of them to do incredibly well.
Well enough to set us far ahead.
Good A.I. coins don’t just allow you to profit from A.I. development. They give you a more fundamental claim on the space by giving you partial ownership of the system that will allow A.I. to come into being in the first place.
And that’s very good for us, because I expect that same technology to usher in a world were getting ahead with clever market strategies will no longer be possible for human beings. “Artificial General Intelligence”, or A.I. that can think about whatever it wants, will outperform people.
By the time that happens, we’ll want to have already made our money.
Soon, I’ll be sitting down to have a word with one of the people who helped give us the term “artificial general intelligence,” as well as one of my favorite A.I. cryptos to talk even more about these groundbreaking developments.
Stay tuned!
