Grayscale which is a crypto investment firm has come with a latest and detailed report in which it has clearly promoted Bitcoin over fiat money. According to the report, Bitcoin is going to be the ultimate solution against the central bank’s fiat money.
The report which has been brought by Grayscale is named as ‘Quantitative Tightening’. The firm has warned people against the unlimited supply of the fiat money. In the report, it has been mentioned that due to this unlimited supply, the value of the U.S. dollar will be decreased to a great extent.
Grayscale claims Bitcoin to be safe haven
The Grayscale report has also specified that Bitcoin is becoming a safe haven more than gold or fiat currency. There is huge uncertainty in the whole market due to the coronavirus pandemic. Amid this, fiat currencies have started decreasing their values, government bonds are also lacking behind. On top of it, gold is also severely affected because of the supply issues and is failed to be a safe haven. Considering all of this, Bitcoin is the only one that seems to be least affected and hence it is the one that needs to be called a safe haven. Considering all of this, huge investors need to start looking towards bitcoin as a safe haven and pay more attention towards it as compared to other fiat currencies.
Investors need to understand the effects of government intervention
Earlier in April, Grayscale had specified that the company is holding around 1.7% of the total Bitcoin supply. Currently, the assets of worth $3 billion of Grayscale are under the management procedure. It has also urged all the investors in its report that they need to understand all the effects of the government intervention both monetary and fiscal.
Some other major Bitcoin supporters and investors have emphasised on the weakness of fiat currency as compared to Bitcoin.
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