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- BTC is trading at $10,626.96 and is up by 0.89% in the last 24 hours.
- The market capital stands at $196.61 billion, and my daily trading volume is $15.83 billion
- BTC has an ROI almost 70 times greater than that of significant indices like Financial Times Stock Exchange 100, NASDAQ, Nikkei, S&P 500, and Dow Jones markets
Over the past few months, we have often heard that Bitcoin (BTC) acts as a fantastic shield for asset protection during the economic crisis. In short, we call it a hedge, and recently it has been said that Bitcoin has escalated to the top hedge investment during times of economic uncertainty. So what has enabled the cryptocurrency to become a savior during economic inflation? Since the beginning of the US and several other nations’ economic crisis, we have noted a unique correlation between the US fiat currency and BTC. As the dollar depreciates in its value, BTC gains value. And the increase in the amount of BTC since its inception in 2009 can be stressed by the US dollar’s inflation.
Bitcoin’s Value Increased Over the Year, and the US Dollar is Somehow Responsible
Currently, BTC is trading at $10,626.96 and is up by 0.89% in the last 24 hours. The market capital stands at $196.61 billion, and my daily trading volume is $15.83 billion. The much anticipated BTC rally started in the last week of July, and before that, the value of the cryptocurrency was stagnant at $9000 levels. And as of the annual inflation rates, before the COVID 19 triggered an economic crisis, it stood at 2%. However, after the crisis, the inflation rates have risen by 20%. This means that BTC, which is currently valued at $10,626.96 and considering all the inflation and depreciation than BTC, would have been roughly worth $8500 instead.
BTC’s Highest Return on Investments
But why has BTC considered the superior hedge? Suppose someone is having an investment of a dollar. After taking into consideration all the depreciation, the investment values at only 84 cents. Whereas, BTC promises a lucrative return on investment (ROI) of approximately 7 723,75%. This implies that apart from holding its value during economic inflation, it has multiplied its worth despite the prevailing economic instability.
BTC Surpasses Major Stock Indices in Terms of ROI
Not only that, BTC alone outperforms major market stocks in terms of return on investment (ROI). BTC has an ROI almost 70 times greater than that of significant indices like Financial Times Stock Exchange 100, NASDAQ, Nikkei, S&P 500, and Dow Jones markets. Many other trends have convinced investors that, given the economic situations, BTC is the best investment option. Advisors have highly recommended the inclusion of the cryptocurrency in investment portfolios as it shows a consistent growth curve despite the extreme volatility.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
