Falling Lumber Prices, Inflation, And The Impact On Bitcoin As Digital Gold
Since Black Thursday 2020, few asset classes have run as wild on a total ROI basis than Bitcoin and cryptocurrencies, as well as commodities like lumber. The rise of the assets with limited supplies is associated with post-pandemic inflation as well as an ongoing supply crunch due to shutdowns. However, both lumber futures and cryptocurrencies […]
Related News
FTX, one of the largest derivatives exchanges, has started to offer lumber-based futures markets for its customers, given the recent interest in speculating on commodities prices. Lumber has been one of the key commodities that have skyrocketed in price during these last months, affecting and halting many building projects all across the U.S. FTX Starts Offering Lumber Futures Markets FTX, one of the main cryptocurrency derivatives exchanges, has announced it would start offering lumber futures in its product lineup, amidst a resurgence in the interest of traders on this commodity. Sam....
Gold prices have been steadily tumbling in the past few weeks, more so recently after the Chinese reserves data revealed a smaller than expected portion of gold reserves. Gold has been treated as a hedge against inflation, typically gaining in value also when investors are seeking lower-yielding returns from safe-havens. This time around, even with all the monetary policy easing going on among central banks and the prospect of another downturn in inflation, gold prices have failed to rally. Some financial market experts say that gold prices might not see much upside anytime soon since....
According to Alan Greenspan, Former Chairman of the Federal Reserve, the United States should revert to the gold standard in order to counter inflation. In a 36-minute interview for Bloomberg, Greenspan outlined how he believes that the current global financial situation, triggered by the United Kingdom’s exit from the European Union, is worse than any he has seen during his long career, and that hyperinflation could be imminent. “If you look at human history, there are times where we thought that there was no inflation and everything was going fine… The oil prices have had a terrific....
Across multiple economic downturns and bear markets, gold has proven to be a haven for investors worldwide, with many traders and investors opting to invest in it to protect their capital against value depreciation, which occurs from inflation, causing an increase in general prices. Because gold prices are related to the US dollar value due to gold being dollar-denominated, a stronger USD keeps the price of gold down and more controlled. A weaker USD drives the gold price higher due to increasing demand. Ultimately this means that more gold can be purchased when the dollar is more....
Inflation eats into your savings, reducing the value drastically over time. Is Bitcoin a good inflation hedge? Does Bitcoin work as a hedge against inflation?Statistics reveal Bitcoin has worked wonderfully well against inflation, much better than assets such as gold, real estate and stocks.As an asset, Bitcoin works amazingly well against inflation and beats it by a big margin, though you should be careful about extraneous factors like the regulatory environment. Statistics reveal that the odds are much better while storing value in Bitcoin than assets like gold, real estate, stocks and....