New research suggests that Ethereum may become a better inflation hedge than Bitcoin

Bitcoin’s return rate in the past few years is much higher than the inflation rate. The current inflation rate is more than 6%, and it is expected to grow even more in the coming months. This consolidated the asset’s position as the best hedge against inflation.

However, Bitcoin has found another competitor. Calculated by market value, Ethereum is the second largest cryptocurrency, outperforming Bitcoin year-on-year. A new study suggests that Bitcoin may be replaced by Ethereum as a better inflation hedge.

A new study conducted by researchers from the University of Sydney and Macquarie University suggests that Ethereum may have the potential to replace Bitcoin as a major inflation hedging tool. The researchers explained that as cryptocurrencies become more mainstream, investors now view digital assets as a better hedging tool than gold.

As the Fed entered a money-printing frenzy, the inflation rate has recently aroused alarm among investors. There have been calls to stop printing money, but so far it has continued, causing inflation to soar. This is not just a problem for the United States. Inflation rates in other countries in the world are similar or even higher. This drove the adoption of cryptocurrencies as individuals and institutions flocked in to take advantage of their rate of return.

Australian researchers have suggested that Ethereum’s recent innovations indicate that it may be more popular than Bitcoin. The study pointed out that the upgrade of ETH 2.0 is planned for sometime in 2022.

It’s no secret that the rising inflation rate has largely driven the adoption of cryptocurrencies in the past year.

Gold has long been the preferred method for investors to hedge against inflation, but given that this asset has been recording negative returns in the past few years, it has fallen out of favor.

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