Even Apple CEO Tim Cook has invested in Bitcoin to protect his assets from inflation
Juthica Chou, Head of OTC Options Trading at Kryptowährungsbrörse and Bank Kraken, explained that Bitcoin, as a fundamentally new asset class, is a hedge against pandemic-related inflation. The comments of the Führkraft occurred in the midst of the rise of Bitcoin to up to $ 68,744 today früH. Since then, the crypto has fallen by about 5% and is currently trading at $ 65,026.
In a segment of Bloomberg’s „Quicktake Stock“ crypto analyst Vildana Hajric explained that the outstanding performance of Bitcoin in recent days was predictable. She pointed out that investors who believe that a recovery from the pandemic will lead to higher inflation would be hoarding crypto as a hedge.
However, due to the lack of historical data on the performance of the asset’s value, it cannot be sufficiently explained whether the argument that Bitcoin is an inflation hedge is valid, erläuterte Hajric.
In response to Hajric’s comments, Chou was asked whether Bitcoin’s position as a hedge against inflation appeals to Kraken’s institutional investors. The Führungskraft answered in the affirmative, stressing that cryptoährungen are part of the portfolio diversification strategies of some institutional investors.
Chou also pointed out that even Apple CEO Tim Cook has confirmed that he has decided to buy the digital asset from inflation, according to him. This is an indication of an upcoming trend of increasing interest in Bitcoin among both private and institutional investors in order to protect their assets from the effects of inflation.
When asked if retail investors who have not yet invested in Bitcoin have missed their chance, Chou said that it is not yet too late to enter the Bitcoin market:
“If you really have the world view of what is possible with the global adoption of Bitcoin, the market is very large.”
However, müssen individuals who understand volatility that inherently comes with the crypto currency market, Chou said, stressing that investors should consider their risk appetite before allocating Bitcoin in their portfolio.
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