Inflation Concerns and Investment in Cryptocunrceies

Inflation worries everyone, it disrupts the market and the main concern of monetary policy, when US inflation concerns raised, the global stock markets declined, Asian markets followed the US stocks, the inflation data at May 12 triggered a sharp decline in the US markets. According to Fed Vice Chairman Clarida “The biggest disaster in the financial market is coming”, the US Treasury Secretary Summers previously issued an inflation warning, he stated that the US economy facing the risk of overheating rather than excessive weakness and urging the government to respond and slow down the aid funds, the strengthening of the US dollar increases the currency depreciation of emerging economies and further aggravate debt risks, however, U.S. bond yields have risen across the board

Defi

Although the inflation concern the crypto market attracted a lot of funds and specially Defi which has exceeded US$125 billion in lock-up volume, it is surprising and extraordinary, if you compare the Defi total market volume with Goldman Sachs Group US$120.41 billion, you will definitely evaluate the future direction of capital flow. Perhaps it is the indication of Defi’s potential and scalability. People can build their own decentralized applications in Defi, these applications can duplicate the traditional finance concepts into the crypto oriented system

Bitcoin

The current crypto bull market is not over yet, data shows that long term investors are not willing to sell Bitcoin except Musk, which means that the current majors players will hold Bitcoin for the further price increase, according to data 18.66 million bitcoins have been produced, and it is the 88.85% for 21 million upper limits. It is also a fact that one-fifth of bitcoins are lost or stolen, and due to this the current supply of Bitcoin is even smaller and will increase the scarcity of bitcoins, the 80% of transactions in Bitcoin denominated in U.S. dollars, while 19% of Bitcoin transactions occurred with other currencies like Euro, Japanese Yen, and Korean Won, Bitcoin failed to achieve a certain degree of price stability the volatility of Bitcoin is much higher even in cryptocurrencies, however, fiat currencies are much stable and always exhibit price stability but vulnerable to cyclical shocks of inflation and instability of the financial system

Dogecoin

The total market value of Dogecoin has reached 50 billion U.S. dollars, due to its popularity the market value of Dogecoin once surpassed the Barclays bank, since the start of 2021, the increase in Dogecoin value is more than 9000%, and only in 2021, the price has risen 400 times. Unlike Bitcoin and Etherum dogecoin does not have many practical usabilities but you can reward artists with Dogecoin, often people use Dogecoin for raising the funds. The Dogecoin community successfully launched charitable fundraising activities and raises more than US$30,000 to support water resources protection on the eve of World Water Day.

This currency also attracted so much popularity over past years, The Filecoin market value is 8th in the cryptocurrency market, the current trading price of FIL coin is about US$238 and many experts believe that it will rise to $1,000, the total circulation of FIL coins is 2 billion and this blockchain uses the six-year halving mechanism

Source: https://medium.com/cryptocurrencies-ups-and-down/inflation-concerns-and-investment-in-cryptocunrceies-c00691dcb3?source=rss——-8—————–cryptocurrency