Dec 02, · Fink went on to say that the cryptocurrency could possibly evolve into a global market asset, offering a rare positive statement from the respected asset . Dec 02, · CEO of $7 Trillion Fund Sees Bitcoin as ‘Global Market’ Asset The fund manager said that while Bitcoin is currently a small market, there’s potential for massive upside. Apr 08, · World Markets is an online retail broker specializing in bullion physical trading and in recent years has expanded its services to online trading .
Bitcoin world marketsBitcoin: A Global Port in a Market Storm? - CoinDesk
The traditional safe haven will probably do well in the medium term as investors remember its anti-inflationary properties. Gold traditionally outperforms in low-rate environments — no shortage of those these days. Plus, its lack of income makes it less vulnerable to drops in economic activity. Its high volatility makes it unsuitable for many investors. Its hard cap and pre-programmed supply are immune to fluctuations in price.
A sharp jump in the price of gold, however, is likely to bring more supply onto the market as production ramps up, and could even impact the estimated supply limit as alternative mining methods become profitable. For those worried about a sharp economic slump, bitcoin is practically the only asset not directly impacted by macroeconomics.
When miners close down, bitcoin becomes cheaper to mine, which eventually makes the enterprise profitable again. The impact will come from many vectors, but especially loose monetary policy, the currency markets, emerging economies and populist tendencies. As this crisis unfolds, the amount of money that will enter the system to help out not only markets but also citizens and companies will dwarf what we saw in Back then, the markets were threatening to drive the economy into a wall, so reassuring them was paramount.
Now the threat to the economy is driving markets into the wall. Printing money could perhaps help if it actually gets into the hands of the consumers, but that will create inflationary pressure in an economy with no tools left to fight it. The usual anti-inflation weapon is raising interest rates — but doing that in a heavily indebted environment could trigger waves of corporate and even sovereign defaults.
Growing inflationary pressures and steady currency debasement will most likely increase interest in disinflationary assets such as bitcoin and gold that can also be used for payment in some circumstances. This could help the U. But with a stronger dollar, U. With fractures in the global currency order becoming increasingly apparent, economists and investors will be asking what the next monetary order will look like.
In some parts of the world, this could be met with swift retaliation or even regime change. These will most likely take the form of additional support for overwrought health systems, as well as for citizens and companies hit hard by mandated shutdowns and resulting slump in demand. To keep up the pretence of balanced budgets, this support is likely to be paid for through fiscal policy, which means tax increases. While bitcoin should never be used to avoid taxes never, ok? But more importantly, fiscal measures are generally more lenient on capital gains than on high incomes, in the spirit of encouraging investment.
This could push high-net-worth individuals towards assets with a high risk-return profile. In a market where everything goes up, the resulting dust can blur big-picture vision. After a drenching storm there is damage, but the dust is gone. Edges are sharper and colors are more vibrant. This is not investment advice, obviously, and all investors work under different risk-return parameters. Reshape Tomorrow Tomorrow is different. Let's reshape it today. TomorrowMakers Let's get smarter about money.
The Leprosy Mission Trust India. Corning Gorilla Glass TougherTogether. ET Power Talks. Open Up India. Great Manager Awards. Markets Data. Market Moguls. Expert Views. Technicals Technical Chart Visualize Screener. Commodities Views News. Forex Forex News Currency Converter. More Sitemap Definitions.
ET Markets Radio. Has the bitcoin reached the bubble zone again, or will the ongoing rally sustain this time around? Tune in to find out. This is Atul PM. In India, the currency has jumped to over Rs 13 lakh from Rs 5. Some market watchers believe this time is different for the digital currency, as there are more genuine reasons for the price increase like US hedge funds adding crypto assets to their balance sheets.
How can a small investor in India take exposure to the cryptocurrency?