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Investors hedge inflation with Bitcoin – PwC

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PwC: More Investors Seeing Bitcoin as Inflation Hedge

Investors hedge inflation with Bitcoin - PwC

Investors hedge inflation with Bitcoin – PwC
CONTENT

  • Institutions increasingly view bitcoin as a bailout from inflation

  • Quantitative easing policy played a role in Bitcoin adoption, PwC says

  • The consulting giant advises to monitor the stablecoin market in 2021

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PricewaterhouseCoopers experts believe that the current rally is due to the availability of ready-made infrastructure for the arrival of institutional

Most large Bitcoin holders regard cryptocurrency as a hedge against inflationary risks. This opinion was expressed in an interview with Bloomberg by Henry Arslanyan, head of fintech and cryptoindustry in the Asian region at PriceWaterhouseCoopers (PwC).

Investors hedge inflation with Bitcoin - PwC

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Institutions also see BTC as a “response” to record levels of quantitative easing. According to Arslanyan, the recent arrival of Standard Chartered on the crypto market is a signal for the arrival of other, larger regulated companies..

Price is not important

Arslanyan believes that when predicting the development of bitcoin, it is important to build not a model of the future price of an asset, but the potential number of large investors who may come to the market. The PwC top manager emphasizes that the current rally is mainly due to large players like MassMutual, One River Asset Management and others..

“I prefer to focus on how many institutional investors come. <…> For many regulated players who want to enter the market, it is important to have the same regulated counterparty at hand, ”Arslanyan said..

In terms of importance, a PwC top manager proposes to follow the development of stablecoins in 2021, as well as the digital project from FacebookIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately attracted attention … More called Diem (ex. Libra) In June 2019, Facebook announced preparations for the release of the digital currency Libra. The social networking project immediately attracted attention … More). Separately, Arslanyan urges to keep an eye on China, which has long been conducting public testing of the digital yuan..

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Recall that digitalization in the Asian market has reached such a scale that the Securities and Futures Commission (SFC) of Hong Kong for the first time issued a license to provide services to institutional investors of the cryptocurrency company OSL. At the same time, the Central Bank of China is holding public consultations on the approval of amendments to the law on the activities of the regulator..

Investors hedge inflation with Bitcoin - PwC

Thus, according to article 22 of the Law on the People’s Bank of China, “no legal entity or individual can produce or sell tokens, coupons and digital tokens to replace the yuan in circulation in the market.”.

The price of bitcoin in the BTC / USDT pair at the time of writing is $ 23 105.

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