According to Grayscale investors have been buying Bitcoin as an inflation hedge amid massive money printing
Grayscale Investments claimed that, amid the current economic uncertainty caused by governments' latest actions to print a lot of money, institutional investors turn to Bitcoin and other cryptocurrencies in search of potential hedge against inflation.
One of the world's leading digital asset management companies recently public On Twitter, his views on the current financial situation and the role of cryptocurrencies in it:
"As we have closely monitored the market in the wake of recent economic policy decisions, we have seen that the crypto asset class is not only resilient, but interest is increasing as the monetary stimulus has caused investors to look at $ BTC as a potential hedge against inflation. "
This means that Grayscale's opinion overlaps with popular hedge fund manager Paul Tudor Jones II. Jones Indian recently that he was buying Bitcoin as protection against the possible increase in the inflation rate.
Such rising rates could come because world governments have been printing excessive amounts of money to combat the consequences of the new COVID-19 pandemic. Only the United States printed several trillion dollar lots that were inserted into its financial markets and economy.
However, numerous experts believe that these measures could ultimately reduce the value of the dollar and the other fiat currencies. Leading economist Peter Schiff even warned that the United States could be in a state of hyperinflation if this practice continues.
2020 investment asset return
The grayscale tweet from earlier also included a compelling graphic that showed the performance of various investment assets in the first five months of the new decade.
The image shows that in this period, the S&P 500 index fell almost 10%. Government bonds were only positive and gold posted gains of around 13%.
Bitcoin's numbers were substantially higher, registering a double-digit increase of approximately 30%. The primary cryptocurrency bottomed out during the mid-March liquidations, but has made a full recovery since then, without the help of a central authority behind it.
Being also the active Top performers of the past decade, Bitcoin has attracted numerous advocates including from the institutional investment arena. A poll A recent compiled by Fidelity exemplified this by reporting that 36% of such investors own BTC or some alternative currencies.
Grayscale, which primarily serves institutional investors, also supported this narrative as some reports They report that the company has been buying large quantities of BTC since the beginning of the year.
The company sells the primary cryptocurrency with a cousin about 23% at the time of this writing. Which means investors who buy shares through Grayscale prefer to pay more to avoid transferring, storing and managing the currencies on their own.