We are already in mid-2020, and with the increase in popularity, we are about to see one of the biggest monetary experiment colliding with the mainstream fiat currencies.
Recently, there has been an uproar regarding money printing. Government officials are thinking of solving all their problems with just printing the money. However, economical that is never possible. The printing of money is done on the basis of the economic level of the country. This has forced many officials to look for a substitute for tangible money.
And when this debate was on its peak, COVID 19 showed up and this discussion was ended. The official was talking about boosting the economy with money printing, the same economy was destroyed in a short span of 60 days.
In this article, we will discuss monetary inflation and how Bitcoin can act like a Hedge to fight against inflation.
Can Bitcoin Act As Hedge Against Inflation?
In the current market, Bitcoin is fairly a good trade and traders are looking forward to investing in the Bitcoins and other cryptocurrencies. Even you can invest with the help of online platforms like the financial peak.
If we see back, we would never have ever thought that Hedge will allocate funds to the Bitcoins. But today, we are seeing the same thing happening. Tudor Capital was able to see the hidden potential and was the first company to fund Bitcoins.
Tudor company takes this step of funding the bitcoins after seeing its performance in the last few months. When all the currencies failed to perform in the COVID 19 breakout, it was a cryptocurrency that stood strong. This made Tudor capital initiating funding in Bitcoin.
What made Tudor company start funding Bitcoin?
Tudor company’s philosophy is different from the rest of the company. They think businesses like horses and the market as the race. Hence, according to them, they are just betting on a horse that will start winning the race in the near future. And the funding they are doing is just the investment for the future.
Here are the other horses that will be in the race in the near future with Bitcoins.
Bitcoin is a new horse that had just joined the monetization race. And is considered a safe bet in the long run.
Financial assets have been there in the market since the old times. And it will still be a force to reckon with in the future. The elements that you can find in the financial assets are Bonds, Stocks, Contracts, Etc.
Nobody denies the fact that precious elements like gold and silver will not be on the list. The rarity of these precious metals has made what they are now. It has been there in the market for millennials and will be there for the next millennial to come.
These are the physical cash and are the most regulated element in the world. Hence, it will still be there in the future to come.
How Bitcoin acts like Hedge against inflation?
Bitcoin has become one of the important elements of the word’s economy. And this is the reason why it is considered to have unexplored potential that might burst out in the future for good.
Here are the reasons why Bitcoin is considered a hedge against inflation.
Bitcoin is the only Cryptocurrency that is worldwide. Its regulation has become much smoother than the past years, and with just some more push, it can even possess a threat to the existence of the fiat currencies.
Bitcoin is now regulated smoothly in the market, that means there are ways to easy liquidity. This has increased the trust of people on the bitcoin.
We all know that Cash is the only element in the market that have a high liquidity proposition. And this is the reason why they are used mostly. But Bitcoins have also become easy to convert then into cash. This feature has made people opt for Bitcoin than other digital assets.
Portability was never a problem of the bitcoin. Bitcoin is a digital asset that requires a platform rather than a physical form.
Bitcoin is the product of blockchain technology, which means, we have not to worry about its security.