Investors View Bitcoin As 'Safe Store-of-Value' Against Potential US Inflation - CoinGecko

Investors View Bitcoin as 'Safe Store-of-Value' Against Potential US Inflation - CoinGecko

Amid the loose monetary policies and COVID-19 crisis, investors are now considering Bitcoin as a "safe store-of-value" against the potential inflation that may arise in the United States in the wake of the COVID-19 crisis, Bobby Ong, a bitcoin expert and a co-founder and a COO of CoinGecko, one of the world's leading cryptocurrencies data aggregators, told Sputnik

MOSCOW (Pakistan Point News / Sputnik - 31st March, 2021) Amid the loose monetary policies and COVID-19 crisis, investors are now considering Bitcoin as a "safe store-of-value" against the potential inflation that may arise in the United States in the wake of the COVID-19 crisis, Bobby Ong, a bitcoin expert and a co-founder and a COO of CoinGecko, one of the world's leading cryptocurrencies data aggregators, told Sputnik.

"COVID-19 has forced many people to be stuck at home and they have turned their attention to online trading, including the trading of cryptocurrencies," Ong said when asked how the COVID-19 pandemic has and will have consequences for bitcoin.

According to the expert, the macro outlook most definitely favors cryptocurrency as governments across the globe print money to stimulate their respective economies.

"The loose monetary policies have led to purchases of various assets including bitcoin. Bitcoin has now crossed the chasm and is looked upon by institutional investors as a safe store-of-value against potential inflation that may be coming in the US," he stressed.

A pioneer in the virtual web-based Currency, Bitcoin has seen its market capitalization exceeding $1 trillion. Now it is trading at over $58,000.

As questions about the safety of cryptocurrencies emerge, the US government believes that a digital US Dollar will be worth pursuing rather than bitcoin. According to US Treasury Secretary Janet Yellen, Bitcoin is widely used as a transaction mechanism to the extent that it is used often for illicit finance. Yellen believes that transactions via bitcoin is an "extremely inefficient way of conducting transactions and the amount of energy that's consumed in processing those transactions are staggering."

Concerns about potential inflation in the US are flaring as the government is trying to cope with the consequences of the COVID-19 pandemic. Federal Reserve Chair Jerome Powell has recently admitted that the nation will see inflation soar this year, yet promised that the rise in prices will not be substantial.

Roughly 21 million were unemployed in the United States as of May 2020 at the height of business lockdowns forced by the coronavirus pandemic measures. And the majority - over 70 percent� - did not have any work for up to 14 weeks.