Tuesday, November 30, 2021

‼ ️Cryptocurrency VS inflation. How to protect capital with digital assets.

Experts explained why digital currencies have secured the status of defensive assets and whether they can effectively prevent the depreciation of funds

Almost half of unqualified investors in Russia (46%) believe that cryptocurrency will become an effective defensive asset in the future. This is indicated by the results of a survey conducted by the Investing.com portal among Russian investors. The survey also showed that more than half of the portfolio of unqualified investors in Russia is made up of alternative assets (cryptocurrencies, real estate, works of art and antiques).

Russia is among the leaders in the number of visits to digital currency exchanges, and the Central Bank noted that Russian users are among the most active participants in the digital currency market, and estimated the annual volume of transactions of Russians with digital assets at $ 5 billion (about 350 billion rubles).

“The distribution of 'helicopter' money to the population in the US and Europe has stimulated the process of an inflow of funds from private investors into the digital asset market. At the same time, volatility has not gone anywhere, it has not decreased, ”the analyst recalled.

Bitcoin, Ethereum and other digital assets, despite their growing popularity, can both sharply rise in price on positive news, and no less sharply fall when negative events appear, Deyev warned. According to him, it is also difficult to make any forecasts for cryptocurrencies due to the increased regulation of the crypto market by the largest states.

Gleb Kostarev, director of Binance in Eastern Europe, noted that, subject to certain measures and the support of regulators, digital assets can become an effective and global means of settlement, as well as an attractive investment tool.

Residents of countries with a predominant share of the population under 40 should keep at least part of their savings in cryptocurrency, Kostarev is sure. At the current pace of medical development and increasing life expectancy, pension funds will not be able to withstand the growing burden with the current conservative approach to investing in debt bonds or blue chips, the expert concluded.


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