Data from blockchain analytics firm Chainalysis suggests that Bitcoin (BTC) may not be the inflation hedge that many seem to believe in.
“Currently we cannot show a statistically significant correlation between US inflation and Bitcoin price, but we know an anecdote that many people invest in Bitcoin as a hedge against inflation,” Kim Grauer, research director at Chainalysis, told Cointelegraph on 8. 31 when asked for her thoughts on current US inflation and its impact on Bitcoin.
Other countries have seen inflation much worse than the numbers in the United States. Venezuela, for example, had inflation of 10,000,000% in 2019. Interest in digital assets grew at the same time.
“We also know that in other countries with higher inflation or currency depreciation, such as Venezuela and Nigeria, cryptocurrencies are used as a store of value,” added Grauer.
Bitcoin is often described as a store of value in the crypto industry, although events like the price crash in early 2021 logically undo that story.
.
Gros Islet, St. Lucia, 22nd November 2024, Chainwire
Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…
The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…
Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire
Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…
As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…
This website uses cookies.