A recent case study carried out by the digital assets investment firm Grayscale Investments, says Bitcoin (BTC) could be used as a hedge against financial instability.
The study looked at the recent trade hostilities between the United States and China to show how Bitcoin has outperformed traditional currencies. The study suggested that:
“With continued adoption, Bitcoin represents a transparent, immutable, and global form of liquidity that can provide both wealth preservation and growth opportunities. As a result, we believe it deserves a steady strategic position within many long-term investment portfolios.”
People following both traditional currency and crypto markets will see that bitcoin has been on the rise as the trade war has caused turmoil in the economic systems of both countries, but this new study lays out the specifics. The Study states”
“While the risk asset drawdown is still in its very early stages, Bitcoin is on the rise as these risks are just beginning to show up in other asset and currency prices. Since Trump first announced the tariff hike in May, Bitcoin has generated a cumulative return of 104.8% through August 7, versus an average of -0.5% for the twenty other asset classes, markets, and currencies below during the same period.”
According to the report, this is a study of the largest economies in the world, which comprise roughly 40% of annual global economic output.