🌍Current Macro-Economic Context and Bitcoin as a very high value asset class.
Invebit. Why Bitcoin?
The current macro-economic context is characterized by a series of factors that are pushing more and more people to seek higher financial returns.
Among these factors are:
1 - Inflation: which is currently at its highest levels in decades, erodes the purchasing power of savings, making investments necessary that can generate returns higher than inflation itself.
2 - Rising interest rates: Interest rates, which have been kept artificially low for decades, are starting to rise. This makes traditional investments, such as savings accounts and government bonds, less attractive, as they offer lower returns.
3 - Increased Volatility in Financial Markets: Financial markets have become increasingly volatile in recent years.
In this context, investors are looking for assets that can generate high returns, but which are also relatively safe. The asset that is having the most success in satisfying this demand is Bitcoin, which is in fact the asset with the best performance (return) of the last ten years. Furthermore, Bitcoin is considered an anti-inflation asset, as its supply is limited and cannot be influenced by central banks. The search for higher financial returns is a growing phenomenon globally. This phenomenon was amplified by the economic crisis of 2008 and by the continuous geopolitical crises which led many investors to lose faith in the traditional economic-financial system. Furthermore, Bitcoin is considered an alternative investment, which does not fall into traditional asset classes. This makes it an attractive option for investors looking to diversify their portfolio and reduce risk.
Therefore the main reasons that generate interest in Bitcoin are:
The belief that Bitcoin is an asset that will increase in value over time;
The belief that Bitcoin is a way to diversify your portfolio;
The belief that Bitcoin is a way to protect against inflation and that it protects wealth from any adverse conditions, geopolitical crises and systemic risks;
In fact, all these statements are true.
Bitcoin is a fast-growing asset in investor portfolios and is rapidly absorbing capital from other asset classes. Over the long term (5-10 years) Bitcoin has steadily increased its value (price) and this has been accompanied by a strong inflow of capital from institutional investors, such as hedge funds and investment companies. The data therefore indicates that Bitcoin is increasingly becoming a mainstream asset class, attracting the interest of institutional, corporate and private investors.
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