The Pomp Podcast #1031 Brent Donnelly On How Bitcoin Saves Us From Insane Monetary Policy
Jul 5, 2022
Brent Donnelly, President of Spectra Markets and author, delves into the role of Bitcoin in today's financial landscape. He explores whether Bitcoin acts as an inflation hedge or a buffer against lax monetary policies. The discussion also touches on how Bitcoin and Ethereum navigate changing monetary conditions and the implications of Modern Monetary Theory on their values. Additionally, Brent emphasizes the importance of maintaining mental clarity amidst market volatility, sharing personal strategies for better decision-making in trading.
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Inflation Hedge vs. Loose Monetary Policy
- Loose monetary policy drives up all asset prices, especially risky ones like Bitcoin and Ethereum.
- However, tightening monetary policy to combat inflation can negatively impact these assets.
MMT and Market Cycles
- Modern Monetary Theory (MMT), characterized by loose fiscal and monetary policy, drives long-term asset price increases.
- However, cyclical market downturns can still significantly impact asset prices like Bitcoin.
Bitcoin Price Outlook
- Consider buying Bitcoin between $20,000 and $10,000 as long-term insurance against monetary debasement.
- A potential bottom could be around $11,400, representing an 85% drawdown from all-time highs, common in speculative asset bubbles.
