[ad_1]
Bitcoins are also part of the liquidity risk hedging options for investors, as might be the case in scenarios such as the current trade war between the United States and China. This is at least what the investment company Bitcoin Grayscale considers as such, according to a report presented this Thursday August 8 by the company itself.
In the paper, Grayscale points out that the dispute between two economies on the scale of both countries "it could significantly impede global growth by potentially producing a domino effect of negative consequences resulting in a restriction of liquidity. "
Grayscale defines in its text the" liquidity risk "as the possibility of a" real decline in wealth ". These losses may be due to an economic imbalance. Especially with regard to credit and circulation of money, compared to the debt of the economy in question. According to the document, these scenarios may be detrimental to investors based on the exposure of their investment portfolio to these imbalances.
According to the company, bitcoin could be an advantage. According to Grayscale 's badysis, cryptocurrency possesses qualities of badets that allow it to adapt to various scenarios in economic terms.
Bitcoin has the potential to work well during normal business cycles. Liquidity crises, especially those involving currency devaluations.
Grayscale.
Benefits of bitcoin as an badet
Research highlights the growth of cryptocurrency as a means of payment with hundreds of thousands of merchants worldwide. The text also mentions that Bitcoin has trading pairs with the world's leading fiduciary currencies, a move to continued growth, and a technology in full development.
"We believe [bitcoin] deserves a stable strategic position in many investment portfolios. in the long run, "says Grayscale, after listing Bitcoin's attractions as a form of protection for investors' portfolios in risk scenarios.
Grayscale also compares cryptocurrency to gold, in terms of store of value. In short supply. Remember that Bitcoin not only has an emission limit set at 21,000,000 BTC in its code. Its emission is also reduced periodically by the process called dividing in two approximately every four years.
With respect to processes such as the US-China trade dispute, the firm ensures that it is still known at what levels the changes in monetary, fiscal and trade policies of such powers will impact world markets . However, the increase in tensions and the length of the dispute are considered risky. This reality generates the potential risk of "significant contagion for the global economy and financial markets".
The study concludes that bitcoin "could be a useful tool to help investors isolate their portfolios from failure and manage those problems. effectively. "
Source link
