Inflation Hedges like Gold, Real Estate, are Effective, but Bitcoin, other Cryptos Emerging as Wealth Protectors: Report
The team at digital assets firm
Kraken has released a new report on
Inflation, which they refer to as the “insidious thief.”
As mentioned in a blog post by Kraken, the concept of inflation is “front and center again for many market participants, but not everyone is certain of what impact inflation will have on the crypto markets.”
As noted by the digital currency platform, many people have speculated for years that Bitcoin’s (BTC) “disinflationary nature” could be its “biggest boon” in the face of an inflated US dollar. As the global reserve currency, the US dollar is “uniquely tied to many international business transactions and investments,” Kraken explains while noting that if the dollar “does begin to feel inflationary effects, the costs of goods and services could begin to rise.”
Technology by Ben Graham 24th May 2021 10:26 AM After seven days that saw investors lose millions in a crash that wiped more than 50 per cent from bitcoin s all-time high, the future of cryptocurrencies suddenly looks a lot less certain than it did this time last week. After soaring to over $65,000 per bitcoin in April, the world s biggest and most well-known digital currency dropped to just under $30,000 before making a small recovery. The slight uptick at the end of the week is fuelling optimism among many investors who are hanging onto their coins and remaining upbeat that a recovery is on the horizon.
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Even JP Morgan sees upside in Ethereum as institutions can now invest in the cryptocurrency via ETFs. Image: Chris Ratcliffe, Bloomberg
Bitcoin ended the month of April in the red â its first losing month since September 2020.
Not that its April performance (-2%) was a shocker, but it paled alongside altcoins, which registered an average 47% gain for the month.
In January, bitcoin accounted for 73% of the total crypto market cap. That figure has now sunk below 50%.
âGiven the historical and psychological significance of the 50% (market cap) level, a decisive move below said level could mean that bitcoin underperforms in the months ahead,â says Kraken Intelligenceâs market recap for April 2021.
By Syndicated Content
By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) â Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise.
With a jump of more than 350% in its price this year, ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival.
In the crypto world, the terms âethereumâ and âetherâ have become synonymous. Technically, ethereum is the blockchain network in which decentralized applications are embedded, while ether is the token or currency that enables or drives the use of these applications.