Macro Guru Luke Gromen thinks gold and Bitcoin are about to take off, thanks to the US government’s financial woes.
Gromen, a big-time investor, says the US is in a tough spot. To keep things running smoothly, they need negative real interest rates. That means inflation needs to be higher than the interest rate. This has historically been good news for gold, and Gromen thinks it’s also a good sign for Bitcoin.
Why are gold and Bitcoin set to shine?
Gromen explains that the US government is drowning in debt. They can’t afford to have positive real interest rates, so they’ll likely have to keep inflation high. This creates an environment where gold and Bitcoin, both seen as safe haven assets, could thrive.
Here’s the breakdown:
- Gold: Historically, gold has done well when real interest rates are negative. This is because people look to gold as a safe haven when they’re worried about inflation.
- Bitcoin: Gromen believes Bitcoin could also benefit from this situation. While it’s a newer asset, it’s also seen as a hedge against inflation and a potential alternative to traditional currencies.
Gromen thinks we’re just at the beginning of this trend. He believes that the US government will continue to struggle with its debt, which will keep inflation high and benefit gold and Bitcoin.
It’s important to note:
This is just one expert’s opinion. Investing in cryptocurrencies and precious metals is risky, and you should always do your own research before making any investment decisions. /p>
