Bitcoin is taking away the charm from gold. In a note to investors, major US investment banking firm JP Morgan said that bitcoin is a better hedge against inflation than gold. Bitcoin proponents have long tried to claim that the cryptocurrency promises better and faster returns than gold and many prefer it as a store of value. Both of these characteristics are commonly associated with gold. However, critics point out that bitcoin is extremely volatile and there is no guarantee that it will always exhibit a growth trajectory.
So far, bitcoin price It has crossed the $50,000 mark (about Rs 37.56 lakh) for the third time this year. while it shows of bitcoin Likely to rise and fall in rapid succession, it also makes the case that investing in it may eventually pay off.
“Institutional investors are turning to bitcoin, perhaps viewing it as a better inflation hedge than gold,” the note from JPMorgan reportedly read. Commenting on the company’s overview, Fortune magazine said The note is “not surprising” to those who have been closely following bitcoin’s performance this year.
have seen bitcoin High volatility this year. In February, it first crossed the $50,000 mark and then hit an all-time high of around $64,000 (Rs 48.08 lakh) in April. that bull run was massively shortened cryptocurrency market The crash in May and bitcoin lost all its gains this year, hitting a trading price below $30,000 (Rs 22.53 lakh). It took some time to get out of that slumber and by July it was again trading around $40,000 (Rs 30.05 lakh). In August, Bitcoin again broke the $50,000 mark but lost gains. A month later, it hit the milestone for the third time. Bitcoin was trading at $54,719 (Rs 41.11 lakh) on Saturday afternoon.
JPMorgan believes that this third rally is driven by a “re-emergence of inflationary concerns among investors” and is trying to use bitcoin as a hedge against it.