Is Bitcoin a Great Hedge Against Struggling Debt-Based Economies?

The US is known to the vast majority of the world as the global financial and economic powerhouse. Yet, the US holds the largest amount of external debt at $19.9 trillion. The UK, France and Germany fall behind the US respectively as the second, third and fourth largest debt holders in the world.

Since mid-2016, investors and traders in the largest bitcoin exchange markets including US, China and Japan began to perceive bitcoin as a safe haven asset and wealth management product (WMP). Since then, bitcoin has been the go-to asset for avoiding economic uncertainty and financial instability.

Conceptually, the debt of the US carries a low level of importance to both the country and the rest of the world due to the US government and its economy’s impact to the global economy and financial system. As the holder of the world’s largest reserve currency, at times of economic and financial instability, the Federal Reserve, the central bank of the US, rely on its ability to print massive amounts of money to keep the country’s economy

Read more ... source: CryptoCoinsNews

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