It should be noted that Mike McGlone quite often comments on what is happening in the cryptocurrency industry, and in a positive way. For example, in January 2022, he predicted another round of growth for digital assets, which are currently looking good against equities. In addition, he called crypto the best investment option among risky assets. Read more about his views in a separate piece.


What will happen to cryptocurrencies

According to the analyst, Bitcoin will be “helped” by the rapidly growing inflation in the world, which is a consequence of the crisis after the COVID-19 pandemic and the geopolitical problems between Russia and Ukraine. Meanwhile, after all the turmoil, it is BTC that will supposedly prove to be one of the most profitable investments in the markets. Here is McGlone’s quote on the subject, in which he shares his view of what is happening.

Against the backdrop of the US Federal Reserve, inflation and geopolitical tensions, 2022 could be a prerequisite for a return to risky assets and mark another milestone for Bitcoin. Bitcoin is unlikely to outperform gold and the stock market in terms of profitability amid the crisis, as the Fed attempts another cycle of higher lending rates.

As a reminder, higher lending rates make credit more expensive, causing less money in the economy. It also usually forces investors to sell risky assets to provide liquidity in case the market collapses further. Such assets include cryptocurrencies.

The value of Bitcoin

In the chart below, the analyst has compared Bitcoin’s profitability dynamics (in white) with a basket of traditional assets: gold, the S&P 500 stock index and the US dollar money supply. As we can see, the main cryptocurrency is outperforming all the aforementioned investments by a huge margin. According to Cointelegraph sources, McGlone insists that this gap is unlikely to shrink in the coming years.

Dynamics of Bitcoin’s profitability compared to traditional assets

As a reminder, McGlone’s prediction largely echoes a recent publication by former BitMEX exchange CEO Arthur Hayes. Previously, he said that the global financial markets will face a series of shocks, with gold holders benefiting on an unprecedented scale. According to Hayes, the tense geopolitical situation between Ukraine and Russia, although it has increased inflationary pressures, has more symbolic significance. The sanctions have shown that even a central bank’s foreign currency assets can be “stolen” by another government: here we are talking about the confiscation of Russian reserves by the US.

You cannot “remove” from the financial system without serious unpredictable and unintended consequences the world’s largest energy producer in the form of Russia and the collateral that these raw materials represent.

Hayes foresees a restructuring of the financial system in which Bitcoin, stocks and commodities, will suffer major losses.

If you’re not ready to babysit your Bitcoins, then close your eyes, hit the “buy” button and focus on the safety of your family from a physical and monetary perspective. The awakening in a few years after the “fog of war” has cleared will lead to a situation where hard money instruments will rule all global trade.

The value of gold

Ultimately, however, both Bitcoin and gold are set to take on a much more important role as repositories of capital value in the face of a weakening US dollar and euro by other governments. Under such circumstances, which Hayes believes will take place “over the next decade”, gold could reach a threshold of $10,000 an ounce and Bitcoin could rise to a million dollars.

For one bitcoin, my unit of measure is millions of dollars. For an ounce of gold, thousands of dollars.

Naturally, such large amounts will not represent the “actual value at the moment” of the assets. The purchasing power of the dollar is expected to fall substantially, so Bitcoin could actually rise into the millions under such circumstances. Accordingly, investors should prepare not so much for a massive popularisation of digital assets as for a depreciation of existing fiat currencies and a reduction in their global role.


We believe that the current developments will have a really negative impact on the global economy. Authorities will now be forced to print new portions of money to plug financial holes, which will eventually lead to even more inflation. Perhaps in such an environment, people will indeed turn to cryptocurrencies because of their proven ability to increase in value. However, it is hardly possible to guarantee anything in such a situation.


What do you think about it? Share your opinion in our Millionaire Crypto Chat. There we will discuss other important situations related to the blockchain and decentralization industry.