Is Cryptocurrency More Than a Hedge Against Currency Inflation
By Jamie Green – Cryptocurrency Broker
During times of global economic downturn, Governments print and circulate money. It triggers inflation and encourages investors to seek long-term, stable investments with their capital. This has often been gold but in recent years, another long-term store of value for many is a Bitcoin investment instead.
Numerous explanations include the failure of the US Federal Reserve. The US dollar has lost 5% of its value and according to analysts at Goldman, the currency is expected to lose up to another 20% in the coming years. Bitcoin investing is also considered by many shareholders as a hedge against deflationary scenarios.
Traditional Market Deflation and Inflation Vs. Cryptocurrency
Crypto investors must always acknowledge the macro-level factors that drive our economy. Inflation is just one of these and it is important to have a grasp of its meaning to understand its effects on the digital asset market.
Inflation is regularly the outcome of an upsurge in money supply. Deflation is the opposite, where prices fall as currency grows in value dependent on new goods, services and innovation.
The Virus Pandemic
The pandemic has resulted in immensely inflationary fiat policy and explosive growth of money supply while costs in key sectors such as food and services continue to climb due to supply difficulties caused by lockdowns. Some see this as the obvious cause for the gold market thriving and for institutional investors.
Digital Assets and Deflation
Most claim that the limited supply of some forms of cryptocurrency is what can act as a hedge against inflation. The Bitcoin protocol is built so that there should be fewer coins in circulation than the demand for them. In a time of lessened confidence in governments, the fact that cryptocurrency trading allows participants to reduce their contact has also encouraged more people to buy Bitcoin.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards