Bitcoin in Crisis: Challenges to the Promise of Inflation Protection
Bitcoin is facing a critical juncture, with its promise as a hedge against inflation being questioned. The recent price drop, triggered by statements from BlackRock, has cast doubt on the cryptocurrency’s future. BlackRock has suggested that the 21 million bitcoin limit may not be maintained, raising concerns about Bitcoin’s integrity.
Bitcoin’s governance, based on miners and node operators, could theoretically change this limit, threatening its decentralization. In addition, global efforts to control Bitcoin as an instrument of state power are underway, challenging its promise of independence.
El Salvador, which has adopted Bitcoin as its official currency, is facing pressure from the IMF to limit its use. In the US, Federal Reserve Chairman Jerome Powell has rejected the idea of holding Bitcoin as a reserve asset, contrasting with previous promises by Donald Trump.
Despite the uncertainty, Robert Kiyosaki remains optimistic, predicting that the price of Bitcoin will reach $85,426,821,979,350,000 by 2025, although this prediction depends on several factors. The big question is whether Bitcoin will remain a symbol of financial freedom or will be co-opted by state forces.
Source: Br.Investing.com
