Thursday, March 28, 2019
Cryptocurrencies may be a plaything for many, a new way to experiment with digital cash or perhaps to buy things online at the moment, they are going to be embraced by governments, institutions and individuals, but have yet to be adopted by the masses.
As some experts predict an impending economic and financial crisis, cryptocurrencies, as a store of value, could play a bigger role in international currency.
In general, during a crisis, traditional safe havens such as precious metals, US dollar, US Government bonds or real assets work as the preferred hedges. However, with cryptocurrencies, people have new options. If the US dollar becomes highly inflationary, cryptocurrencies will be a popular alternative as they are not tied to any specific country. However, the world of cryptocurrencies is wide and heterogeneous, and some of them can only play this role in the future.