As Bitcoin (BTC) is still ranging around $30k USD, you may wonder if it is still worth investing in crypto, and in which crypto it could be worth investing in.
According to inflationchart.com:
You're now losing 17% of your money to inflation per year or 1.31% per month. At this rate, by 2026 over 50% of your money has evaporated.
The only way to avoid losing money is to invest. There are a few possible options:
- Real estate always makes sense, at least in the long term. In the short term, the interest rate increase may push the prices down.
- Crowdlending still makes sense, if you diversify your assets by investing in many different sectors in order to mitigate the risk.
- Life insurances can be profitable in the long term, depending on the breakdown between bonds (low interest rate) and stocks (risky).
- Stocks can be riskier than altcoins... The price of Netflix stock has decreased by more than 60% in the last 12 months, like many others.
- Bitcoin (BTC) was created further to subprime crisis to fight against inflation. However, its price still goes down while inflation goes up...
Therefore, the key questions are:
a) Will Bitcoin (BTC) continue to go down while inflation goes up?
The latest figures show that Bitcoin price is not correlated to inflation, but to S&P 500: BTC goes up/down when S&P 500 goes up/down. Therefore, BTC will bounce back when S&P 500 bounces back, and a new bull run will take place only if the S&P 500 rebound lasts at least for a few weeks like in Q2'20.
b) Which crypto is the best protection against inflation?
Betting on altcoins is still risky: as altcoins are more volatile than Bitcoin, they will continue to go down faster than Bitcoin if the market remains bearish. However, there might be a few exceptions - please note that none of the altcoins mentioned below are financial advices (please Do Your Own Research):
- Ethereum (ETH) might soon benefit from the upcoming ETH 2.0 merge, which would not be priced in yet and still need to be precisely announced.
- Polygon (MATIC) will continue to be used for gaming. It is already used for The Sandbox (SAND) and might be used by Meta's Horizon Worlds...
- Solana (SOL) will also be used more and more for gaming, as well as for promising applications like move-to-earn, for instance Stepn (GMT).
- Avalanche (AVAX) is a secure alternative to Ethereum (ETH) for DeFi investors and can also be used for move-to-earn (Step App).
- Binance (BNB) is more stable than most of the other altcoins, even Ethereum (ETH), and will likely rebound with Bitcoin (BTC).
- Near Protocol (NEAR) is one of the most promising sharding blockchains with Elrond (EGLD), but still needs to grow...
- Tezos (XTZ) is one of the most reliable and decentralized smart contract blockchains which could attract more dapps.
The list above is not exhaustive. It could be completed with many other altcoins. However, it is key to focus on a few ones in order to cautiously follow them up since the market will remain bearish for a while. Please invest only the money you can afford to lose, and practice DCA (Dollar Cost Averaging).
Please find below a few links to earn more cryptos:
