There is much talk about inflation during the COVID-19 pandemic and the narrative is not misplaced. Governments across the world are distributing cash to citizens, this in a bid to help them overcome economic hardships as the pandemic brings economic activity to a crawl. It is no secret that funds for these stimulus packages, are more often than not generated by printing more paper money. This is what gives rise to fears of an inflation.
Crypto media is having us believe that Bitcoin could provide an effective shield against inflation. The BTC halving process that happened to be performed during the pandemic, is also being touted as a big positive to the theory.
To be honest, Bitcoin has always showed a tendency to experience wild price fluctuations, this at times when least expected. This is something that makes it unsuitable to park funds that, could be required at short notice. This needs to be mentioned because, there is talk about citizens investing money received by way of stimulus packages in cryptcurrency – in most cases Bitcoin.
Bitcoin has been around for quite some time and many investors have devised their own policies. A large group of BTC investors perform deep analytical reviews before buying or selling the crypto. These are investors that are not swayed by crypto media narratives.
Short term Bitcoin investors also form a significant number. These investors, closely monitor BTC price movements and offload their holdings the moment targeted profits are assured.
Back to Bitcoin’s ability to act as an effective hedge against inflation – here is the most likely scenario. Investors with funds on hand, would spread their investments to cover gold, selected stocks and probably Bitcoin. The general public with little knowledge about cryptos, would prefer not to ‘risk’ their funds on cryptos during these tough economic conditions.
GLITZKOIN: Glitzkoin is developed on the Stellar blockchain. The project includes the multifaceted GTN token that currently trades actively on 3 crypto exchanges (Cointiger, Stellarport and Dobitrade). Glitzkoin makes a direct connect to the multibillion dollar diamond industry. The project is promoted by second generation diamond veteran Navneet Goenka, it aims to improve productivity and market scope for the glittering industry. A comprehensive diamond trading platform (DiaEx) is part of the project, it supports both B2B and B2C trade in diamonds. As mentioned above GTN is traded by crypto traders on three exchanges, it is also designated as the mode of payment on DiaEx.