Larry McDonald, a figure closely followed in the financial world, argued that investors have emerged from the “deflationary regime” that characterized the last 20 years and that we have entered a new era where high inflation is permanent.
According to McDonald, in this new era, software companies like Netflix are losing value, while companies controlling physical assets and rare earth assets are coming to the forefront.
McDonald, through Bear Traps Report, announced that they have added Bitcoin to their portfolio for the first time. According to the analyst, past sharp 70% drops are expected to be less destructive in the future as the market matures and institutional participation increases (with the entry of giants like BlackRock).
McDonald argued that they track the “Bitcoin/Gold” ratio in portfolio management, and that when this ratio reaches certain levels, it presents a strategic opportunity to buy Bitcoin.
He argued that Bitcoin has become a must-have asset in portfolios, alongside gold, silver, and platinum, especially at a time when the global dominance of the dollar is being questioned.
McDonald characterized the US sanctions and interference with property rights (as in the case of Russia) as “Washington’s arrogance.” He stated that this situation is driving global partners away from the dollar and that dollar debasement is inevitable within the next 10 years. In this scenario, Bitcoin, with its decentralized structure, is seen as a refuge against the cracks in the traditional financial system.
*This is not investment advice.
