Bitcoin has benefited the most from record investments in cryptocurrencies. On Wednesday, its price crossed $69 thousand for the first time. Bloomberg’s Galaxy Crypto Index, which tracks cryptocurrencies, has increased the price of bitcoin by 2.5 percent since May. Investor interest in cryptocurrencies, especially bitcoin, is increasing rapidly because it is currently seen as one of the best investments for hedging against inflation. Proponents of the cryptocurrency say that it is designed in such a way that its supply is limited compared to the dollar or any other traditional currency. Therefore governments cannot devalue it, nor can central banks increase its spread significantly.
Rally continues in bitcoin since August
The rally in bitcoin started in August and has continued since then. Investing in cryptocurrencies is believed to have increased significantly after bitcoin ETFs were approved in the US. Recently the market cap of cryptocurrencies has increased to over 3 trillion dollars. But analysts believe that due to the increase in inflation, investment in cryptocurrencies has increased. In the last few years, the inflation of oil, gas and food items has increased rapidly. In the US, the inflation rate rose the fastest last month. This is the fastest inflation rate since the 1990s.
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Gold prices down 1.8 percent, bitcoin price up 130 percent
According to a Bloomberg news, the big players of Wall Street are also making big investments in cryptocurrencies keeping in mind the same principle of inflation hedging. Till now, gold was considered the best investment for hedging against inflation, but this year its spot price has fallen by 1.8 percent. At the same time, the price of bitcoin has increased by 130 percent.
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