Bitcoin "loses steam" in an effort to become an anti-inflationary barrier

Đức Mạnh |

Bitcoin climbed above $44,000 after inflation in the US continued to peak in four decades. The debate has once again heated up over whether cryptocurrencies are a hedge against inflation.

Probabilities for early blooming as Bitcoin prices increase slightly

The largest digital currency by market value increased by 3.3% to 44,085 USD on January 12, right after the announcement of the consumer price index (CPI) to increase by 7% in 2021. This is the highest annual inflation rate recorded in the US since 1982. Some market participants have speculated that the rally will continue, pushing other risky assets such as stocks higher.

On the same day, the Ether cryptocurrency increased 4.5% to $3,375. However, after that, both of these leading major currencies immediately cooled down and adjusted down slightly.

The newly released inflation shows that the Fed does not need to accelerate monetary policy tightening, said Michael Reynolds, vice president of investment strategy at Glenmede. This means that the outlook for cryptocurrency may be a little better.

Currently, holding assets in cash becomes more attractive when the Fed raises interest rates. We expect that selling digital assets may earn some profit.

cryptocurrency proponents have long argued that Bitcoin and other digital assets, due to their characteristics, can act as a hedge against fluctuations in other areas of the financial market.

According to them, gold-like Bitcoin is a limited quantity that needs to be exploited and its value depends on market demand. The BTC can only create a limit of 21 million digital token units.

It is too early to recognize the ability to fight inflation

Mr. Cam Harvey - a professor at Duke University and a partner at investment strategy company Research Affiliates - has long said that Bitcoin is operating too much like a speculative and periodic asset.

Bitcoin's ability to improve buyer profits and reduce volatility in the long term has not been proven.

In fact, this currency is very sensitive to market disruption and fluctuations. Bitcoin's value fell more than 80% in December 2017, "evaporated" 50% in March 2020 and continued to lose 53% in May 2021.

In addition, the Bitcoin shark investor team is known for its ability to manipulate prices by selling or buying in large quantities. This means that the BTC can be controlled by speculative forces, not just the law of supply and demand.

The legality is also an important factor that shakes the value of this digital currency. Currently, Bitcoin is not recognized as a legal form of payment in many countries, including Vietnam.

Even the central banks of many countries are tightening control of Bitcoin and other cryptocurrencies. The two main reasons given are that cryptocurrencies affect economic order and have a negative impact on the environment due to the huge excavation of coin-based power sources.

Đức Mạnh
TIN LIÊN QUAN

Selling a house to buy Bitcoin to the billionaire with the world's largest cryptocurrency assets

|

Billionaire Changpeng Zhao is currently the owner of the world's largest cryptocurrency exchange Binance. Despite owning a huge fortune, Mr. Zhao believes that these things distract him and are ready to give up most of his assets before passing away.

Is Bitcoin "digital gold" or just "rude gold"?

|

Bitcoin and gold are still controversial in the investment world. Gold and Bitcoin are similar in their limited quantity points, which need to be exploited and whose value depends on market demand.

Lao Dong Newspaper won 3 National Press Awards for the 19th time in 2024

|

At the 19th National Press Awards - 2024 held in Hanoi on the evening of June 21, Lao Dong Newspaper won 1 B prize and 1 C prize and 1 Encouragement prize.

Portuguese fireworks enthusiastically at the Great Music Festival of Light for a Green Future

|

Da Nang - The Macedos Pirotecnia fireworks team from Portugal ignited the DIFF atmosphere with a authentic rock concert on the Han River night sky.

20h News: Reasons why the "one-stop, one-stop" model in Lao Bao - Den Sa must stop after 10 years

|

20h News: Forecast of the risk of strong storms and super typhoons; Reasons for stopping the one-stop model after 10 years of piloting...

Heavy rain is complicated, warning of the risk of flooding

|

According to the meteorological agency, many localities in the North have had heavy to very heavy rain since last night, June 21, causing floods on rivers to rise rapidly.

Contrasting traffic after installing a hard median strip on Vo Chi Cong Street

|

Hanoi - The lane for crowded cars still has a mixed lane to open up after Vo Chi Cong Street was installed with a hard median strip.

Hun Sen Complained over Phone call with Thai Prime Minister

|

The Deputy Prime Minister of Thailand has filed a complaint against Hun Sen for leaking a recording of a phone call with Prime Minister Paetongtarn Shinawatra.

Selling a house to buy Bitcoin to the billionaire with the world's largest cryptocurrency assets

Đức Mạnh |

Billionaire Changpeng Zhao is currently the owner of the world's largest cryptocurrency exchange Binance. Despite owning a huge fortune, Mr. Zhao believes that these things distract him and are ready to give up most of his assets before passing away.

Tiền mã hóa, game NFT “lùa gà” và bài học rơi thẳng đứng từ Bitcoin

Thế Lâm |

Tính từ thời điểm ngày 9-10.11, khi giá Bitcoin đạt đỉnh trên 68.000 USD đến nay, đồng tiền số này đã mất giá hơn 15%. Thậm chí vài ngày trước, Bitcoin được cho rằng “rơi thẳng đứng”.

Is Bitcoin "digital gold" or just "rude gold"?

Đức Mạnh |

Bitcoin and gold are still controversial in the investment world. Gold and Bitcoin are similar in their limited quantity points, which need to be exploited and whose value depends on market demand.