{"id":2417,"date":"2022-04-15T14:43:04","date_gmt":"2022-04-15T11:43:04","guid":{"rendered":"https:\/\/evercodelab.com\/blog\/?p=2417"},"modified":"2022-07-28T16:32:04","modified_gmt":"2022-07-28T13:32:04","slug":"crypto-as-a-hedge-against-inflation","status":"publish","type":"post","link":"https:\/\/evercodelab.com\/blog\/crypto-as-a-hedge-against-inflation\/","title":{"rendered":"Crypto As a Hedge Against Inflation"},"content":{"rendered":"

One of the reasons why the popularity of crypto assets is growing all over the world \u2014 for both businesses and individuals \u2014 is the fact that many investors perceive it as a main or additional shield against inflation. Today, we would like to share our perspective on why people think so. \u00a0 \u00a0<\/span><\/i><\/p>\n

Current Landscape <\/b>
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Rising inflation rates are a serious issue nowadays. Both the COVID-19 pandemic with its disruptions and the ongoing political turmoil contribute to it. As the New York Times reports, roughly 60% of what is called \u2018developed countries\u2019 – including the US and the Eurozone – are affected by it. It means that all these nations are facing annual inflation rates <\/span>exceeding<\/span><\/a> 5%.\u00a0<\/span><\/p>\n

Quite unexpectedly, both individuals and companies are searching for a hedge against it. Some invest in gold, some opt for real estate, some prefer securities and shares. However, many have identified crypto as their shield of choice.\u00a0<\/span><\/p>\n

Survey\u00a0<\/b><\/h2>\n

This observation can be substantiated by the following figure: 40% of America\u2019s crypto owners <\/span>view<\/span><\/a> their digital assets as \u2018a hedge against inflation.\u2019 The key motivator in this respect is the fear of \u2018inflation in the US is running at 40-year highs.\u2019 What makes people believe in the anti-inflationary potential of crypto?\u00a0<\/span><\/p>\n

Why Is It So?<\/b><\/h2>\n

Coinbase<\/span><\/a> stresses the following obvious reasons why one can rely on crypto in the race between BTC and ETH and inflation:\u00a0<\/span><\/p>\n