Bitcoin; digital alternative currency is going up north and investors are not second-guessing any move with the recent wave.
Does Bitcoin have a significant role in the future of payment networks and banks? That’s one question, hedge funds, institutional investors, and influential crypto experts are answering with their actions and inactions during this Covid-19 era.
It’s no news that the global economy is no longer predictable for investors owing to the global pandemic. Institutional investors and hedge funds around the world are not left out of this recent wave. They have been rushing to have stakes in crypto assets which have been outperforming other financial assets since Q1 and Q2 of 2020.
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Grayscale Investments, a New York-based Hedge Fund joined the Bandwagon effect of Crypto Investments by buying huge rates of Bitcoin (BTC) because of the recent uncertainties in the global economy.
Also, Bitcoin educator Andrea Autonopoulos sees the recent downturn in oil prices as a net positive for crypto miners worldwide. Investors have been seeking other options, not just for a return of investment regarding their instruments, they just want to secure and hedge their existing portfolio from the inadequacies and uncertainties of the markets.
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But, Michael Sonnenshein, the Managing Director of Grayscale Investments, told Cointelegraph that investors have typically tried to shield their portfolios from market shocks or during times of uncertainty with fiat currencies, government bonds, and gold. In his words,
“All three are facing issues this time around. Bitcoin has emerged as an alternative hedge, operating independently of the dramatic monetary policies enacted by central banks.”
The dwindling global economy, coupled with rising geopolitical tensions from the likes of the U.S, China, and OPEC counties have further put a strain on the already weakened economy. This has further increased the appeal for Crypto investment.
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What are your thoughts? Do you think investors should hedge their investments with digital alternatives?
Caveat:
None of these is investment advice. Kindly seek the services of a Crypto expert or financial adviser for investing in crypto assets.
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