When reports arrived in the UK in mid-June warning that inflation rates had dropped to a four-year low, high-profile fund managers were concerned about government COVID-19 incentives and central banks would eventually raise prices.
In a recent release on market prospects Famous hedge fund investor Paul Tudor Jones warned:
“We are experiencing the ‘big money inflation’, an unprecedented expansion of all forms of money like no other development in the world. The high debt caused by money pressure is difficult to eradicate. Inflation expectations one day they could react to this reality.”
Crispin Odey, the founder of Odey Asset Management, based in London, He also agrees that inflation is ultimately inevitable given the level of incentives. “”In the short term, the money is made with the inflation bet, “ wrote Odey, in a recent letter. Given the looming potential inflation, investors are looking for the next big hedge to protect their wealth during the looming economic crisis.
Is Bitcoin the New Gold?
For example, Jones has decided that one way is to invest his Tudor Investment Corporation fund in Bitcoin (BTC). “If I’m forced to forecast, my bet is that it will be Bitcoin,” commented Jones in the same letter to investors. “”Bitcoin reminds me of gold when I first started this business in 1976. “
After this The U.S. Federal Reserve announced June 10. these interest rates will remain close to 0% by 2022, Bitcoin experienced a short run of more than $ 10,000, a 1.6% gain within 24 hours before falling behind.
Institutional investment managers They have become increasingly interested in everything related to cryptocurrencies in recent years, and their interest continues to grow. A current report from Loyalty, This shows that in a survey of nearly 800 institutional investors in the U.S. and Europe, 45% of companies in Europe say they own crypto assets. The loyalty continues:
“As expected, the survey showed an increased entry into hedge funds and crypto risks, but also among financial advisors, the wealthy individual and family office segments.”
Consumers are also showing increasing signs of interest as the British Financial Conduct Authority reports that around 2.6 million people have bought crypto assets at some point, almost twice as many as last year.
In general, investors can take advantage of the same trends and take advantage of Bitcoin inflation hedging. But Accessing the cryptocurrency markets can sometimes be extremely difficult. with cryptocurrency exchanges that charge their users high commissions for the privilege. However, there has been one in recent years a certain maturation of the crypto markets. Now they have been created easier-to-use and more user-friendly platforms, They offer instant and secure access to cryptocurrencies at the best price. Users of these platforms You can benefit by instantly exchanging your money for effortless digital currencies at competitive prices and monitoring your balances in real time.
Have the fastest horse
Through these unprecedented times As economies around the world adjust to a pandemic, investors around the world need to readjust their positions. However, The use of Bitcoin to protect against potential inflation is not alone in the world of Jones and Odeys. New technology platforms make it a lot easier for UK residents to protect their assets in a similar way by combining currencies in their accounts, helping to make cryptocurrencies more accessible.
“The best strategy to maximize profits is to be the fastest horse owner,” said Jones in your note “Big money inflation”. He clear believes that Bitcoin is the one behind it.
The views, thoughts and opinions expressed here are only those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.