[Analysis] Bitcoin in a deflationary age

Kevin Virgil, portfolio manager of Kosmos Capital Management, assesses the impact of a deflationary shift in the global macroeconomic environment. While deflation typically reduces the demand for inflationary hedges, a deflationary environment in the U.S. and other developed economies doesn't entail deflation worldwide. The second-order effects, namely a reduction in demand for discretionary imports could damage emerging market economies leading their governments to engage in inflationary behavior. This of course presents an opportunity for safe-haven assets in these markets which could generate an aggregate increase in Bitcoin ($BTC) demand.