YOU might think that 2022 is turning out just how bitcoin investors would have liked.
What’s more, bitcoin should, like gold, be resistant to inflation, owing to its limited supply.
What we have seen, however, is a much more complicated picture forming.
What squares the circle is the fact that bitcoin has become a bit of a poster child for short term, speculative investors.
For example, as the pandemic first took hold in March 2020, gold initially eschewed its safe-haven status by posting a big decline4.
Positively, bitcoin’s ‘hash rate’ has recently risen to new highs, at over 200 terahashes per second5.
Moreover, bitcoin may well have an important role in helping to cushion investors from the effects of inflation over the longer run, not least because its annual rate of production falls by roughly 50% every four years.
However, there’s no denying the current link between bitcoin and big tech, even though theory suggests there shouldn’t really be one.
If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
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