Cowen: Bitcoin Is Becoming Better Inflation Hedge Than Real Estate Or Gold

According to Benjamin Cowen, a top crypto analyst, Bitcoin (BTC) is becoming a stronger inflation hedge than gold and real estate.

In a recent update on his YouTube channel Cowen discussed the topic with InvestAnswers and Rob from Digital Asset News, and said that people are becoming more and more aware of inflation and that traditional assets aren’t always the solution.

“What’s the hedge? Three choices: one, you get priced out of the market [because] real estate’s all-cash buyers. Number two, it’s gold, but with 20% purchasing power debasement, gold doesn’t go up 20% per year. You need something that really has much more alpha than that.”

Cowen noted that storing money in the bank is also not for anyone who wish to preserve the value of their capital. According to him, Bitcoin‘s narrative as an inflation hedge is growing stronger. 

“I’m hearing a lot of reports that people that have a lot of money, they’re really looking for that hedge right now. They’re sitting on a third of their net worth in a bank account. They’re losing 2% of value a month. They’ve done the calculations.

So you got $5 million in the bank, you’re losing 2%. They’re like that’s a lot of AirBnB’s. That’s a couple of yacht charters…

They’re doing this math in their head. They’re saying, ‘We got to fix this fast,’ and they’re already all in on equities, all in on real estate, but what do they do with their cash balance? Once that market comes over, we just need the narrative to be there. 

The narrative has not worked because the numbers haven’t worked because the price has been a little bit manipulated, suppressed, but as far as I’m concerned, there’s only one hard asset on this planet, and I’ve looked, and that’s Bitcoin.”