Emerging Markets Move To Bitcoin – Katie Wood



Founder of investment firm ARK Invest believes bitcoin can be used to hedge inflation

Emerging markets will choose bitcoin to maintain purchasing power. This opinion was expressed by the head of the investment company ARK Invest Katie Wood during a speech at the conference The B Word, writes Business Insider. According to her, bitcoin is the very tool that allows you to hedge inflation risks.

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“Many emerging markets are suffering from significant inflation. In other words, the purchasing power of these population groups is declining. Therefore, they will use bitcoin and other tools to maintain purchasing power, ”said Wood.

The expert also believes that corporations benefit from the high purchasing power of the population.

However, the American publicist, economist and trader Nassim Taleb believes that cryptocurrency does not protect people from inflation. He previously published a study in which he explained why bitcoin has failed to justify itself as a store of value and has proven to be an unreliable defender against inflation. The economist believes that bitcoin is responding to liquidity infusions like other bubbles.

Read also: Bitcoin to grow to $ 318,000 by 2025 – Finder.com

He cited the March 2020 market crash as an example. Then bitcoin crashed more than the stock market, but later recovered with it due to the massive injection of liquidity.

Earlier, Elon Musk said that the spacecraft manufacturer SpaceX, which he controls, also owns bitcoin. However, the amount of investment in the cryptocurrency remains unknown. Musk also admitted that he personally invested in ether and dogecoin, but the size of these investments is significantly inferior to Bitcoin.

How the leading cryptocurrency in terms of market capitalization can become a means of payment in the premium segment – read the special material of the BeInCrypto editorial staff.

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Karice Dabule

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