One important thing that crypto investors may want to consider soon
It is worth noting here; something that is possibly not yet getting enough coverage. The really big gains for the leading cryptocurrencies over the past few months have taken place against the background of what has been a zero interest rate world. That is to say; that the cost of ownership of Bitcoin and the like has not been expensive to fund. In fact, it has cost nothing and depending on where one is based, it might have even saved money. For example, in the Eurozone, where larger clients have been faced with negative rates, moving money into a digital asset with significant potential for capital growth has surely been a better option so long as the digital instrument in question increases in value. It is of course a similar story for gold, but slightly more complex as gold is a hard asset, so long as one buys the physical metal. However, now that global interest rates are rising quite rapidly and the bond markets are under increasing pressure, yields are rising significantly. If that continues it will eventually lead to higher rates of real interest. If that happens then what price the former free cost of financing speculative digital assets? Something for everyone to ponder if they have not already. Bitcoin was above 52k earlier this afternoon, it is now trading at 50,985
Tags
Exchange BTC
Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.
Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.