The road ahead for cryptocurrencies: an industry strategist explains why inflation could drive the next market rally
- AAX’s Ben Caselin delves into the reasons why investors are looking to bitcoin and other cryptocurrencies as investible assets
- He sees continued growth and dominance for bitcoin, but also recognises that innovations are drawing attention to alternative cryptocurrencies
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The cryptocurrency market has made global headlines in financial media this year, thanks in part to wild swings in the price of bitcoin. But the relative calm in that space in recent weeks offers an opportunity to take stock of fundamentals not only for bitcoin, but also the universe of alternative coins, or altcoins.
According to a senior researcher at a leading crypto-exchange, what lies ahead could be a bullish setup for a range of crypto assets including the time-tested bitcoin, as well as innovative smart contract platforms, stablecoins, meme coins and other tokens.
Ben Caselin, head of research and strategy at Singapore-based crypto-exchange AAX, explains that monetary policy decisions amid the Covid-19 pandemic are set to drive a wave of inflation – and the resulting loss of purchasing power in traditional fiat currencies.
If inflationary pressures don’t prove to be transitory – as is expected by many analysts – investors will increasingly look towards cryptocurrencies as a store of value.
