Grayscale recommends Bitcoin as investor's best bet

The world’s authorities were not prepared to handle a global epidemic that is currently plaguing the world. That much became obvious rather quickly after coronavirus started to spread.

Even worse, by attempting to provide momentary relief, central banks put the crumbling economy into an even bigger danger. Promises of unlimited money printing, however, were the last drop. Now, many are predicting inflation, the second Great Depression, and other catastrophic consequences.

These after-effects will likely trouble the world long after the coronavirus crisis goes away. This is why Grayscale recommended leaving the USD, and investing into a different asset. Interestingly, its new report says that the best bet to avoid USD debasement is to start buying Bitcoin.

Bitcoin’s role as a safe haven

Bitcoin is the world’s largest cryptocurrency, that came to be due to the previous global financial crisis. It has been 11 years since then, and during that time, Bitcoin supporters claimed that it can protect the world from similar incidents.

Of course, there was no way to test that claim on a global level, since crypto adoption progressed extremely slowly. In fact, it took years for cryptos to even come out of the shadows.

Now, however, switching to Bitcoin is a perfect way to escape the monetary problems that are undoubtedly coming. Grayscale said it itself: “Fiat currencies are at risk of debasement, government bonds reflect low or negative real yields, and delivery issues highlight gold’s antiquated role as a safe haven. There are limited options to hedge in an environment characterized by uncertainty.”

Not only that, but Bitcoin is about to see the inflow of new coins cut in half. This is the complete opposite approach than the one that central banks are taking.

Because of that, Grayscale believes that promises regarding Bitcoin will come true. “Bitcoin is showing signs of becoming a safe haven while maintaining an asymmetric return profile,” the report says.