"Those bullish on the crypto sector as an alternative asset class worth investing in have reasons to stay invested. For one, Bitcoin and other leading cryptocurrencies allow investors to keep some capital outside the traditional monetary system. For those concerned about inflation, the value of the U.S. dollar - which has fallen around 10% since the start of the year - and other key potential economic issues, that's the kind of insurance that's worth buying (even if it seems expensive)."
"Just looking at the trade in gold and other dollar alternatives, it's clear the near- and medium-term trend has been moving in the right direction for crypto investors. But it's also true that crypto's status as both a hedge against monetary and fiscal policy concerns also coincides with this asset being deemed a speculative one. In other words, when the market is flying higher, expect even bigger returns from the likes of Bitcoin, other alt coins and the myriad of platforms and blockchain-based applications"
Bitcoin declined 8.59% over five days, producing a monthly loss close to 10% while remaining more than 57% higher year-to-date. The recent selloff appears connected to concerns about financial-system stability. Crypto continues to serve as an alternative asset that lets investors hold capital outside the traditional monetary system, which appeals to those worried about inflation and a weaker U.S. dollar. Dollar alternatives such as gold and crypto have trended favorably this year. Crypto also remains speculative, delivering outsized gains in rising markets and larger losses during downturns, creating a timing decision for investors.
Read at 24/7 Wall St.
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