Recently, there has been an increase in the value of the Bitcoin cryptocurrency. The record was set on March 13 – the coin exceeded 73 thousand dollars. Bitcoin is currently trading around 70 thousand. The surge has brought cryptocurrencies back into the public eye. Experts look at this phenomenon with distrust and do not hesitate to call Bitcoin a “financial pyramid” and a “bubble” that could burst at any moment.
The increase in the value of Bitcoin is explained by instability in global financial markets, explained Associate Professor of the Department of Economic Policy and Economic Measurements of the State University of Management Maxim Chirkov. The coin behaves almost the same as gold, which has recently increased greatly in price, the expert quotes Channel 5.
Associate Professor at the Financial University under the Government of Russia Alexey Zubets indicates that the monthly increase in the value of gold is 7%, and the annual increase is about 17%. The same situation is observed with silver and almost all non-ferrous metals.
Investors perceive gold and Bitcoin as some kind of alternative to the world’s leading currencies and begin to hedge risks in relation to them. And in this sense, cryptocurrency, despite all its unreliability, has a certain liquidity. Therefore, despite the risks, investors are beginning to focus more on alternative investments. The reason is that these assets are independent of market conditions, so people invest in them to protect against a potential economic depression in the United States.
Experts suggest that in the event of troubles in the American economy, Bitcoin will grow even more, that is, it has not yet reached its peak. Moreover, now the volume of bitcoins that can be mined is falling, which complicates and slows down their mining. On the other hand, in Russia both the demand and prices for powerful video cards used for mining have increased sharply. This means that mining becomes profitable and attractive again. But in general, due to the relative unreliability of Bitcoin, investing in it for the medium and long term is not very correct, experts say.
“I, of course, would not recommend investing in cryptocurrency, because by and large these are very risky assets and it is better to find an alternative to the dollar and euro in some other investment, in particular gold or other precious metals. Maybe a little less liquid, but more reliable, such as real estate and art,” explains Chirkov.
“Why do you need cryptocurrencies if you can invest in stocks, bonds or some startups? Bitcoin itself does not generate income. Shares pay, so shares rise in price and bring dividends. Therefore, when there are assets for investment in bitcoins, it is clear that people will start selling them and investing in some more attractive assets that bring profitability: stocks, bonds, physical assets, metals, and so on,” Zubets agrees with him.
2024-04-09 21:00:00
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