Senator Ted Cruz: Investors Attracted to “Bitcoin as a Hedge” Against Inflation Due To Biden’s $7T Spending
Senate Foreign Relations Committee member Ted Cruz, R-Texas, believes Bitcoin has a lot of potential.
In an interview with Sean Hannity on Fox News, when asked about the cryptocurrency, Sen. Cruz said its growth is the result of inflation caused by monetary policy.
“I think it has a lot of potential. I think we're seeing enormous growth in it. I think part of the reason we're seeing people go to Bitcoin is because we're on the verge of an inflation crisis. Joe Biden has proposed $7 trillion in spending and we're seeing inflation.”
Cruz pointed out how the prices across different sectors have been going up, which is prompting people to turn to BTC as a hedge.
“We're seeing lumber going up, homes going up, oil going up, gasoline going up, energy going up, commodities going up and I think people are going to Bitcoin as a hedge against that.”
However, he noted that there is an inherent risk with Bitcoin as an investment.
“That being said, it is a new cryptocurrency. To be honest, I don't understand it. I think a lot of people don't, and so I would say it has upside, but there's risk there.”
Cruz’s bitcoin endorsement could be of significance as Bitcoin is particularly popular among millennials who see it as digital gold, a store of value, while 37% of Fox News viewers are 65 or older, according to research from 2020.
Not only the older generation has found it hard to grasp the cryptocurrency, but they are also the ones with the big pockets, with the biggest ever generational wealth transfer involving trillions of dollars underway.