Xinhua News Agency: Cryptocurrency has become the best performing asset this year

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Xinhua News Agency, Beijing, September 24. “Reference News” published a report from the Bloomberg News website on the 24th “Cryptocurrency has become this year’s “number one asset”.” The summary of the report is as follows:

The market’s enthusiasm for cryptocurrencies has made it the best performing asset so far this year. Cryptocurrency is called a decentralized financial instrument.

In 2020, the “Bloomberg Galaxy Cryptocurrency Index” rose by about 65%, surpassing the increase of more than 20% in the price of gold, and also surpassing the yields of the global stock market, bond market and commodity markets. One of the key reasons for the higher gains is that the Ethereum coin has skyrocketed, and the weight of the Ethereum coin in the cryptocurrency index is more than one-third.

Mike McGron, a strategist at Bloomberg Information Research, said that the increase in the use of decentralized financial tools has driven the price of Ethereum to climb, and Ethereum “seems to be maintaining its leading position as a platform in the digital currency field.”

With the help of decentralized financial tools, people can borrow, lend, and earn interest like in a savings account without the need for traditional intermediaries like banks.

Proponents of digital currencies such as Bitcoin believe that digital currencies also provide an option for value preservation. People are now worried that the huge stimulus funds invested in response to the new crown epidemic will increase inflation and weaken the dollar.

Mark Fleury, chief executive of twoPrime, a cryptocurrency asset management and financial technology company, said that the cryptocurrency market performed well during the COVID-19 crisis, partly because when risks multiply, cryptocurrencies will become “safe havens” like gold. . “When the real economy stagnates, a purely nihilistic tool performs well.”