As a result of the growing inflation that is being experienced in Europe and the United States, a debate has arisen about whether cryptocurrencies can be useful as a refuge asset and if they are still interesting to incorporate them into an investment portfolio, for reasons of diversification.
Traditionally, in periods of high inflation, investors sought to preserve the value of their savings by investing in assets such as fixed income, or real estate, among others. The recent addition of cryptocurrencies as an investment option has added a possible new alternative hedge to inflation.
Currently, in the United States we find ourselves with the highest rate of inflation in the last forty years (7.5%). To curb this non-transitory inflationary situation, the FED will raise interest rates and withdraw the monetary stimulus or tappering.
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