Is the soaring BTC a slightly better hedge against cash?

By Mind_Braille | sharding_responsibly | 19 Feb 2021


 

An analyst at JP Morgan claims that the BTC rise in price is only a diversion of the rise of fintech and that it is a hedge many are willing to take against cash due to the downtrodden economic trajectory. They also claim that bitcoin is usually on the rise when investors go through cyclic trading of various stocks and assets.

Image result for crypto gold meme

I do take this claim with a grain of salt (no cryptocurrency pun intended) and realise that from what I have observed the crypto markets have risen and fallen historically. I do see the potential for BTC mass adoption because it has been the first of its kind and it has proven itself as a secure digital monetary store of value over time. I also see the potential for it to be the "crypto gold" as a store of value more than a coin for every day use. Btc would have to Rise another 100k  at about 150K each BTC to be comparable to gold and assets that represent the trade volume of precious metals to date.

The risk of BTC going on a downturn is still there though and it may begin to correlate with covid-19 measures easing. The onus on any investor whether crypto or fiat is to to do their research on the team, milestones, realistic applicability/use and then hedge a diverse small piece of their pie (5% roughly ) or all if they are feeling a game of financial roulette on any VC or volatile investment, crypto included. 

What do you think is in store for BTC in the long run? Do you think that it will decline over the long run because it is not green to mine a crypto? 

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sharding_responsibly
sharding_responsibly

A crypto-enthusiast who loves the concept of decentralisation and bringing back the power to the people. Let's shard responsibly and help inform each other to navigate the wild cryosphere.

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