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Weakening dollar is fuelling Bitcoin’s price surge, Quantum Fintech founder suggests

Weakening dollar is fuelling Bitcoin's price surge, Quantum Fintech founder suggests

Harry Yeh, founder and managing partner at Quantum Fintech Group, has suggested that Bitcoin’s surge in value is mainly due to the dollar’s devaluation.

Speaking to Bloomberg Markets and Finance, Yeh stated the current Federal Reserve policies are powering Bitcoin while singling out the continued printing of money. Yeh believes that the release of money into the economy places Bitcoin in the pole position as an alternative.

According to Yeh, cryptocurrencies have also evolved from the fear of crashing to occupying an important role in portfolios for both institutional and retail investors.

He stated that investor focus should be on which assets can occupy a portfolio rather than approaching the sector with skepticism of a potential collapse.

Yeh added that the current inflationary environment offers the perfect ground for getting involved in the crypto sector because assets like Bitcoin act as a formidable cushion.

“It’s not a question of whether or not cryptocurrencies are here to say it’s, what is your blockchain and cryptocurrency strategy.<…>Bitcoin and other cryptocurrencies are used as a hedge against inflation right now. The more money printing that happens, the more the value of Bitcoin and all of these things tend to rise, but I  think of it as an inverse. I don’t think that Bitcoin’s going up in value, it’s just the dollars worthless,” said Yeh. 

Furthermore, Yeh highlighted that getting involved in crypto is easier because since with any amount, investors can purchase their preferred assets as opposed to the stock market

With the Fed concerned about inflation, he projected that the ongoing tapering would favor Bitcoin, unlike other investments assets like stocks

Yeh also acknowledged that although Bitcoin tends to trade in correlation with other risk assets, the cryptocurrency has the upper hand considering that the rising inflation impacts investment options from the traditional sector. 

Bitcoin surges past $50,000

His sentiments come as Bitcoin leads the crypto market to trade green. By press time, Bitcoin was trading at $51,300, gaining almost 11% in the last seven days. 

Bitcoin 7-day price chart. Source: CoinMarketCap

Yeh’s bullish stand on Bitcoin’s status as a hedge against inflation is different from other market experts. As previously reported by Finbold, Genesis Trading, head of market insights, Noelle Acheson, stated that there is no evidence Bitcoin is a cushion against inflation. 

She believes that the cryptocurrency is yet tested as a hedge against inflation. 

Featured image via Bloomberg Markets and Finance YouTube

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