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Bitcoin is priced at $ 69,000 on the heels of high price issues | Crypto News


Bitcoin proponents have been saying that the world’s most valuable cryptocurrency could act as a hedge of inflation.

Author Bloomberg

Bitcoin hit another record and is trading at $ 69,000 for the first time after inflation data fueled controversy over whether cryptocurrency is a wall against inflation.

The largest digital assets at market prices rose to 1.9% to $ 68,991 on Wednesday, in line with what happened on Monday at the end of trading in New York. Other prices also rose, with the Bloomberg Galaxy Crypto Index – which follows the major cryptos – gaining 2.4% to its highest level since May.

The rise of the signal could, perhaps, be explained through an important debate – which has gained interest in recent months – that Bitcoin could serve as a wall of inflation. Crypto brokers argue that, unlike dollars or other traditional currencies, digital currencies are designed to be limited, so they cannot be eliminated by the government or the central bank that distributes them.

“Bitcoin continues to enjoy the conference that started in August and supports through September and October,” said Sui Chung, chief executive of CF Benchmarks, and cryptocurrency benchmarks administrator. The most recent phase of his meeting began in anticipation of the launch of the Bitcoin-futures ETF in October, but “it seems to be progressing well due to the inflation we are seeing in all countries of the global economy.”

Prices for everything from food to gas to housing have risen sharply and have risen sharply in recent months than most economists think. Consumer prices in the US have risen sharply last month since 1990, boosting rising prices as a sign of the epidemic and eroding destructive power despite rising wages.

Major Wall Street players have said they bought the money – or are interested in it – because of inflationary-hedge ideas. Their case is fueled by the fact that gold, often referred to as a hedge of inflation, has been failing in recent months as Bitcoin advanced.

However, some argue that it does not have a long enough history to prove that it can act as an inflationary wall. Cam Harvey at Duke University has raised the issue in the past, arguing that technically, if investors see it as gold, Bitcoin could have its value for a long time – like a hundred years or more. In his search for gold, he found that he had kept his value for thousands of years. But he also found that it often has manias and short-term damage.

Matt Maley, chief market analyst for Miller Tabak + Co., says many investors see it as an hedge of inflation, but are not sure if this is going well.

“I’m not saying it can’t be – I just think gold has been working as an inflation barrier for years, so people should use gold along with Bitcoin as a fence,” he said.

The price of gold has dropped 1.8% this year, while Bitcoin has gained more than 130% in the same period, according to data compiled by Bloomberg.

“People are looking for a place to put their money,” said JJ Kinahan, chief marketing officer at TD Ameritrade, over the phone. But, he added, “it is difficult to say whether it is an inflation hedge or not because we did not survive through inflation and cryptocurrencies. It is one of the things that everyone thinks is going to happen, but time will tell. ”


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