Low inflation may be good for the economy but its bad for your wallet.

Is crypto a good investment against inflation. If inflation induced a recession for example investors might respond by stepping away from riskier assets such as cryptocurrencies. Gold is traditionally a great investment during inflation and cryptocurrency is being used in the same way now. How inflation reduces the buying power of your money.

Truthfully people can benefit from holding both gold and crypto as an inflation hedge. That being said every investor needs to. Billionaire investors are therefore lining up to compare Bitcoin to gold.

Crypto is not immune to inflation it might even performs worst than stocks when the inflation kicks in with all this fomo people will be panic selling as crypto doesnt really any real value. Crypto enthusiasts often talk about bitcoin as a hedge against inflation. Cryptocurrency was born out of the desire to see a new financial system emerge and it may well make good on that.

This week were touching on the topic of inflation. If annual inflation rates hit 5 a dollar will only be worth 095. If youre interested in using crypto to protect against inflation you can get started through Coinbase.

There isnt only one best cryptocurrency to buy. Were going to review an article from the Wall Street Journal. Therefore it is important to find the right strategies and investments to hedge against inflation.

So make sure to diversify your crypto portfolio. Most cryptocurrency is built with an inherent limit meaning they have a limited supply. The reason why some forms of cryptocurrency can act as a hedge against inflation is precisely the same reason gold can.