Noted Economist: This Is Why Bitcoin Will Rise Over the Next 12 Months

Macroeconomist Luke Gromen says he sees Bitcoin rising in the coming months due to favorable macroeconomic conditions for the digital currency. In a new interview, Luke Gromen points to, among other things, America’s national debt, which is now growing towards $35 trillion.

But why is this a problem for America and good for Bitcoin?

Inflation is inevitable

Luke Gromen states in the podcast that the US central bank cannot do anything about a new upswing in inflation.

That next wave of inflation will ultimately lead investors to store of value assets as pushing Bitcoin, to protect itself against monetary depreciation; this is Gromen’s conviction.

“I am very bullish on Bitcoin for the next six to 12 months, tactically and strategically. It no longer matters whether the US central bank raises or lowers interest rates. In my opinion, inflation and budget deficits are going to rise.

The only way that wouldn’t happen is with a weak US dollar. Then you will see that the shortages will become lower.

So my choices are: higher interest rates and more inflation, lower interest rates and more inflation or lower deficits with a weaker dollar and therefore more inflation (money depreciation),” says Gromen.

According to Gromen, there is nothing the US central bank can do about inflation and that makes him bullish on Bitcoin.

Higher interest rates cause more inflation?

In his story, Luke Gromen also calls out that higher interest rates will cause more inflation. But how will that happen? According to him, this has everything to do with the national debt of almost 35 trillion dollars.

If interest rates remain at this elevated level, interest costs will rise and the U.S. government will have to borrow more money. As a result, more dollars come into circulation and that should ultimately cause the inflation that Gromen predicts.

As soon as we see that development, Gromen expects a flight to scarcity, which will largely end with Bitcoin. For that reason he is very bullish about the digital currency. So far he seems to be right.

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