2 Crypto Stocks That Could Hedge Inflation Better Than Bitcoin
JPMorgan Chase (NYSE: JPM), the world's largest bank, recently issued a report on digital assets that said many investors continue to view Bitcoin (CRYPTO: BTC) as a substitute for gold, and therefore a hedge against inflation. Earlier this year, however, there were plenty of experts who said just the opposite.
I don't know who is right, and I think the idea of Bitcoin being a hedge against inflation is still somewhat debatable. However, with inflation still trending upward, the Federal Reserve officially beginning to taper its bond purchases, and the market pricing in interest rate hikes in 2022, thinking about hedging your portfolio against inflation certainly isn't a bad idea. Here are two crypto stocks that I think could act as better, more guaranteed hedges against inflation than Bitcoin.
The roughly $12 billion asset Silvergate Capital (NYSE: SI) is one of the few licensed banks in the country that operates heavily in the crypto space. While it neither holds cryptocurrencies on its balance sheet nor mines them, its entire business model is based on its real-time payments system -- the Silvergate Exchange Network (SEN) -- which allows parties to clear transactions instantaneously, 24 hours a day. It makes trading cryptocurrencies more efficient for institutions and crypto exchanges because the assets trade around the clock. SEN has helped the bank bring in tons of deposits that it doesn't have to pay any interest on, as well as attract a large clientele to whom it can cross-sell its traditional banking products. Additionally, SEN can mint and burn stablecoins, which presents a huge opportunity for the bank.
Source Fool.com