By Susie Violet Ward · City A.M. · 17 July 2023
Written as a City A.M. column in July 2023, the piece considers how permanent inflation, the 2024 halving, rising interest rates, ETFs and regulation could affect the UK public. It explains that inflation erodes the purchasing power of the pound and savings, and that a falling inflation rate means prices rise more slowly rather than fall. The column sees bitcoin’s fixed supply as a potential hedge against inflation.
It cites InvestAnswers’ estimate that $63 billion would absorb all bitcoin on exchanges, while a 1% allocation by BlackRock, from roughly $8.5 trillion to $9 trillion under management, would need about $100 billion. Glassnode data showed exchange balances at an all-time low, and The Rational Root’s HODL Model Hypothesis suggested illiquid supply was outpacing new issuance. The column also notes bitcoin’s treatment as a commodity and a Bitcoin Mining Council report on bitcoin mining’s sustainable electricity mix.