fbpx

Companies are turning to Bitcoin to protect themselves from inflation

week 43

Companies are seeking protection against economic crisis and inflation. What we told you many times about investing in cryptocurrencies or precious metals is now becoming a trend through companies.

Let’s see what made big companies invest in cryptocurrencies.

Huge year-on-year decline

Banks around the world are facing declining equity performance. Pandemics, restrictions and economic downturns have caused instability and led to a 28% decline in the global banking market compared to the same period in 2019.

JP Morgan Chase recorded the largest decline in the US market, at $ 142.6 billion between December 2019 and July 2020. JP Morgan Chase was immediately followed by Bank of America, with a decline of $ 102.2 billion.

Years of stability

The decline came after a long-term growth of bank shares. Growth has been driven, for example, by access to low-interest trade loans. The truth is, however, that many people saw this growth only as an “everything bubble.”

Banks are trying to deal with the slump in different ways, but most often they are trying to pump huge amounts of money into the economy to cover the loss – but it is becoming clear that it is not helping at all.

Protection of investments in cryptocurrencies

Due to this situation, many companies have turned to investing in deflationary currencies. An example is MicroStrategy, which seeks to protect against economic risk by investing in Bitcoin.

You can learn a valuable lesson from this behavior. Why should you rely on the state and your bank to take care of you when you can let your money work and protect yourself from inflation and economic downturn yourself.

Conclusion

Inflation and the economic crisis we are currently entering will have huge consequences. To avoid losing your savings and money, don’t waste time, start investing and let your money work. But remember the golden rule of investing – invest only as much as you can afford to lose.

Source: decrypt.co

Leave a Reply

Your email address will not be published. Required fields are marked *

bitcoin
Bitcoin (BTC) 14.290,58 0,82%
ethereum
Ethereum (ETH) 432,52 1,53%
platoncoin
PlatonCoin (PLTC) 0,364776 2,08%