The price of bitcoin has soared almost twice in the last 8 weeks as it was driven by the announcement of several large companies starting to wholesale crypto currencies to hedge against inflation.
Demand for the crypto currency is expected to continue to rise with the expectation that inflation will reach a 19-month high. The projected long-term inflation rate over the next 10 years is projected to increase to 1.85%, the highest level since May 2019.
The US dollar index, which measures the greenback against the major currencies, is seen to be close to the exchange rate of 91.00, the level recorded in April 2018.
Factors like these have prompted institutions and investors to buy safe haven assets such as gold. But this year, investors are more likely to buy bitcoin. Some analysts like Michael Saylor who is a strategist think that bitcoin is a better value asset asset than gold.
On the other hand, Morgan Stanley predicts a 10% decline in US currency over the next 12 months. Bitcoin prices ranged from a low of $ 3,867 recorded in March to a current $ 19,920.
Bitcoin has reached a trading price range of between $ 18,000 to $ 20,000 in two days. CEO of BlackRock asset management firm Laurence D. Fink said that the crypto currency Bitcoin (BTC) has made the US dollar no longer relevant even though it is not yet used in the world market.
Gold also continued to strengthen after rising to a one-week high level raised by hopes of more coronavirus stimulus measures to be implemented by the United States.
