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Billionaire: The Math Behind Why Cash Fails, & Bitcoin Doesn’t
Bitcoin has now evolved into a global asset, with multiple use cases coming up explaining why Bitcoin is the best asset against inflation right now. While cash has the tendency to erode every year, the affordability of the cash system slips each year. BTC now stands at a stage where it is being positioned as the leading asset worth keeping an eye on. Here’s billionaire Rob Baron explaining why the days of using cash are numbered now.
Also Read: $94K or $105K? Doesn’t Matter. Bitcoin’s Market Is Trillions
Also Read: $94K or $105K? Doesn’t Matter. Bitcoin’s Market Is Trillions## Cash Melts While BTC Lives: What’s Happening
This perplexing meltdown is resulting in money erosion, where affordability is being trumped by rising inflation.
In Baron’s exact words, money depreciates every year as compared to Bitcoin, an asset that has the potential to safeguard wealth against inflation-centric erosions.
“What happened is the value for money falls four or five percent a year; that’s inflation. Falls four or five percent a year, and the economic growth has been about two percent a year. So it’s about seven percent a year growth, and that means everything doubles in ten years, and the value of your money falls in half every 15 years. So you’ve got to make twice what you’re making today in 15 years to stay even. And so the stock market, you know, so Bitcoin’s been amazing, obviously.”
“What happened is the value for money falls four or five percent a year; that’s inflation. Falls four or five percent a year, and the economic growth has been about two percent a year. So it’s about seven percent a year growth, and that means everything doubles in ten years, and the value of your money falls in half every 15 years. So you’ve got to make twice what you’re making today in 15 years to stay even. And so the stock market, you know, so Bitcoin’s been amazing, obviously.”
THE MATH DOESN’T LIE
Billionaire Ron Baron just spelled it out in the simplest way possible:
Money loses 4-5% of its value every year from inflation, while the economy grows about 2% a year.
That’s roughly 7% erosion + growth — which means prices double about every decade… pic.twitter.com/YiSuupRJDh
Bitcoin for the Long Haul?
According to Charles Hoskinson, founder of Cardano, Bitcoin is meant for the long haul. Hoskinson urged investors not to panic over “red candles” and wait for Bitcoin to show its true sentiments in due time.
STOP STARING AT THE 1H CHART — LOOK AT 2030
Hoskinson basically said:
Stop obsessing over red candles — the long-term direction is locked in. 550M people in crypto now, a billion by 2030, and trillions of stocks and bonds moving on-chain.
The scale of what’s coming is way… pic.twitter.com/JSue4qluLQ
Also Read: With Bitcoin Fluctuations In Play, What’s Next For Shiba Inu?
Also Read: With Bitcoin Fluctuations In Play, What’s Next For Shiba Inu?