People are less adaptive to bitcoin as Inflation Hedge: Bank of America
A report of Bank of America noted that people are not adopting bitcoin as a hedge against inflation.
The whole world is moving toward crypto adoption to make money. However experts of the crypto industry and also many supporters of this industry claim that the industry is getting huge support because of its unique technology and use cases, but the latest report is showing a mirror that is reflecting contrary to such statements.
By taking the reference of money market situation between bitcoin and the S&P 500 stock index, and between bitcoin and the Nasdaq 100 index reached all-time highs, in between January to February mid, Aleksh Shah, A strategist at Bank of America published his research and claimed that people are using bitcoin like volatile assets in trading purpose, not a hedge against inflation.
Shah noted that the price of Bitcoin is almost the same if we compare the price of Bitcoin in May of last year and the present time. But still, people are bound with Bitcoin and other highly volatile assets. Research notes indirectly tried to hint that all these are only part of the trading activities to make Money.
But at the same time, Shah noted that there are some people and companies there that are actually using Bitcoin as an investment like a hedge against inflation.
“individuals living in inflationary environments may view bitcoin as an inflation hedge”
So from this point of view, we can say that Bank Of America believes that people will trade in Bitcoin until it will have volatility and after the stability, it will be better to invest as a Hedge against inflation.
If we analyze ourselves beside the research note of Bank of America then we will find that it is a bitter truth that the majority of the people in the Bitcoin and crypto industry are just to make money through their investment and they are not influenced with Bitcoin because of its limited supply to fight against Inflation.
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