Bitcoin has only been around for a decade but in that short time, the flagship cryptocurrency has made waves throughout the world. The crypto asset was created by someone we don’t know of, only a codename or sorts, Satoshi Nakamoto and is secured by a worldwide group of miners. No government or authority backs it. It is a decentralised entity.
As a result, people look at Bitcoin and cryptocurrencies as an escape from the grasp of governments. Release following the crash of 2008, Bitcoin has been a safe haven for anti-establishment proponents. But not everyone agrees…
As reported by News BTC:
“Cynics of the theory remark that BTC is too nascent to be used as a proper store of value, citing the periods of volatility, especially the downturns, as a perfect case in point. Regardless, a massive cryptocurrency firm recently laid out why these naysayers may be wrong in their postulation.”
Grayscale’s infamous research department recently released a report named ‘Hedging Global Liquidity Risk with Bitcoin’. The report states how the leading cryptocurrency is becoming used as a hedge during times of financial doubt.
Specifically, though the crypto investment company looked into how the asset can be used during times of when there is “liquidity risk”, the “risk of a real decline in wealth resulting from an imbalance in the amount of money and credit relative to debt in a given economy.”
In supporting this, Grayscale looks to three main factors of Bitcoin’s existence which are:
- Store of value
- Growth chance
First of all,