Bitcoin Becomes a Hedging Asset

[Velemir Sava]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks and start being a hedge investment asset today as well as a financial winner in the future?

[jossiel]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks and start being a hedge investment asset today as well as a financial winner in the future?

We may have that thought that it's completely not attached to the other markets. But as we can see, it's hard to look at it at the moment that it will be disconnected from those things.

But as a hedge fund, many will agree that it is one of the hedge asset that we can have right now. With interest rates going up and inflation coping up, bitcoin is a known deflationary cryptocurrency.

Who knows, someday bitcoin will be completely detached from the other financial markets.

[Morningstarr]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks

It is almost impossible for BTC to stay on its own no matter what the global situation is because everything is interconnected. If there is an increase in inflation, there is a war or some kind of tension arises, there is a gain or loss of many things related to it and this is a normal cycle.

[dimonstration]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks and start being a hedge investment asset today as well as a financial winner in the future?

This was discussed many times and the answer is always depends on people perspective. Yes it can be if Bitcoin will manage to stabilized its price without considering the fiat value meaning commodity and services will be valued in Bitcoin quantity and not through its equivalent value but this will only happened if USD will not be the main currency for pairing globally. The current condition of the market only proves that Bitcoin can’t suffice this idea because it’s price is dragging down along with the inflation. Maybe yer or not in the future but no one knows.

[samuraijin]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks and start being a hedge investment asset today as well as a financial winner in the future?

If there is no solution for the future, why should you do it, if it will change everything, nothing is impossible, because this is an increasingly emergency regarding the world economy, it is getting worse day by day, and it has an impact on the current inflation, even this not the first time talking about it, and in the end there was no way out..

[cloudfir3e]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks and start being a hedge investment asset today as well as a financial winner in the future?

many argue that Bitcoin can be a hedging asset because Bitcoin has an intrinsic store of value over time and can make it more acceptable and more countries will legalize Bitcoin like gold.
Supporters believe it will be seen as an asset that will not depreciate over time.
it is even more likely that Bitcoin may outperform gold in the future.

[o48o]

Geopolitical instability and inflation are the main issues these days. Is Bitcoin be able to disconnect from these two risks and start being a hedge investment asset today as well as a financial winner in the future?

Well it has potential to do that but the track record isn't that convincing. For example whole crypto has been very reactive to world events and especially stock prices.
Also Bitcoin is still under heavy fire because of POW and more the price grows, more heat it will get especially now when whole europe is trying to save electricity it will be seen as someting to get rid of by ton of politicians. And intensity of regulations for trading cryptos is just going to increase to the point that original pseudonymous cryptopunk idea is far gone. There will be way more blacklisted accounts and if tracking doesn't work they just ban fiat pairs.

All this pressure is definitely affecting trust on bitcoin as a safe heaven of any kind. Then again, there are different kind of voices in people making laws, so we might see some rebellion against regulators, but i very much doubt that as we are slowly losing the physical cash too.