MicroStrategy CEO Michael Saylor, one of the biggest supporter of Bitcoin posted a tweet on monday regarding the surge in food prices and oil prices around the world driving the adoption of digital products, digital services, and digital assets as governments face rising debt.
“The surge in food & fuel prices is going to further weaken global currencies and encourage the imposition of capital controls, price controls, & export controls, favoring a strategy based on digital products, digital services, & digital assets.”
The surge in food & fuel prices is going to further weaken global currencies and encourage the imposition of capital controls, price controls, & export controls, favoring a strategy based on digital products, digital services, & digital assets. #Bitcoinhttps://t.co/9QYb4DwqBV
— Michael Saylor⚡️ (@saylor) April 4, 2022
Michael Saylor mentioned a Wall Street Journal article on how rising inflation is weakening global currencies and increasing public debt as governments roll out subsidies and tax breaks. Moreover, he thinks governments’ control of the capital, price, and exports will drive the adoption of digital products, digital services, and digital assets.
The increase in food prices and oil prices have provoked protests around the world. The governments are forced to continue their subsidies, resulting in an increase in government spending. Thus, increasing public debt.
Some countries can manage the rising inflation up to a limit by increasing interest rates and inducing monetary easing. However, poor countries and debt-ridden countries are facing major challenges amid rising inflation.
To overcome the inflation people are shifting towards crypto adoption, countries such as El Salvador, Ukraine, and South Korea among others have already pushed for crypto adoption after facing rising inflation and increasing public debt.
Business leaders such as Microstrategy CEO Michael Saylor, Tesla & SpaceX CEO Elon Musk, Michael Novogratz, and others have already advised investors and governments on the benefits of cryptocurrencies, including Bitcoin.
Global financial institutions such as BlackRock, Morgan Stanley, and JPMorgan are looking to invest in cryptocurrencies as interest in digital assets grows among their clients. Meanwhile, many people and organization like JP Morgan Chase CEO Jamie Dimon, International Monetary Fund (IMF) concerned about the growing crypto adoption and warned that increase in crypto adoption will decrease U.S. dollar dominance.
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