Is crypto a poor substitute for cash in an inflationary environment?
Ailing stock markets continue to impact crypto prices and technical analysis suggests $Bitcoin (BTC.CC)$ is at risk of falling below its recent $25,500 low. ![]()
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On May 17, U.S. Fed Chairman Powell told the Wall Street Journal that the 50-basis-point rate hikes would continue until inflation is under control. Powell's emphasis on a hawkish policy suggests that monetary conditions are likely to remain tight in 2022, which could limit the upside in risky assets. ![]()
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Bitcoin's 50% slide in six months highlights its flaws in times of stress:
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It's an energy suck at a time when power prices are surging and offers no dividend against a backdrop of rising interest rates;
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It's also attracting increased regulatory scrutiny. That's on top of big scalability issues that have hindered its adoption in payments, not all of which are solved by the Lightning Network on display in El Salvador;
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Its pseudonymity may be appreciated by cybercriminals, but people today prefer hard cash.
When cash is king, Bitcoin ends up looking more like a leveraged gamble than digital gold. Even $MicroStrategy (MSTR.US)$ is feeling the heat of impairment charges as Bitcoin bounces near the company's average purchase price of $30,700. ![]()
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As inflation rages and touches 40-year highs, investors are looking for anything to mitigate its effects on their portfolios. In such times, investors often turn to commodities, in particular gold, which has a long history as an inflation hedge. More recently, some traders have been touting Bitcoin and other cryptocurrencies as alternative ways to hedge inflation. Mooers, what do you think? ![]()
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Source: Bloomberg, Cointelegraph
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Crypto news and opinion. ༼ つ ◕_◕ ༽つ Crypto enthusiastic (Not a financial advisor)
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102405503 No limit : bitcoin will crash everything along the way...
Markets Dilemma : It is absolutely make u poorer
momogreedy : Buy the dip
103875312 OWL : personally will take gold as an inflationary hedge.
Eric 埃里克 : Bitcoin is the future!
Whattrend : Widely used and across countries
were screwed 75 : gold baby
000000000 : crypto is the worst with no backing of any tangibles. another crypto crash will bring down everything crypto by 99%
搞经济 抄底 加仓 : Crypto use to be so independent.
TRIUMPHANT RETURNS : does central banks of the world buy n hoard crypto?
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