California Business Journal interviewed NGK: NGK has unlimited potential in the future!

The price of Bitcoin has fallen in the past few days. However, affected by the opening of the cryptocurrency payment channel by VISA, the price of Bitcoin has risen again, and this time, it is expected to break through historical highs.

In fact, many players in the market still have expectations for Bitcoin, which can be shown by the continuous increase in the holdings of Bitcoin options.

However, many people’s discussions on Bitcoin are only at the superficial stage of price increase and decline. Only a few people will discuss from the macro-level environment to explain the current situation of Bitcoin.

NGK

Why should everyone pay attention to the macro environment?

This is because, according to a series of data, the Bitcoin or cryptocurrency market is affected by the macro environment, and some important macro environmental factors will seriously affect the future trend of the cryptocurrency market such as Bitcoin.

For example, from the perspective of institutional investors, the main reason Bitcoin is attractive is due to its properties as an inflation hedging tool.

Although governments from various countries remain a skeptical attitude towards cryptocurrencies, Bitcoin, as a powerful tool for inflation hedging, has been rising since the global economic crisis.

NGK

Why? Judging from the existing policies introduced by central banks, there has been a continuous over-issuance of fiat currencies in various countries, while cryptocurrencies have gradually replaced gold as a hedging tool, becoming a more suitable inflation hedging tool in the eyes of investors.

In fact, many fund giants have also seen this. In their view, when many investors found that gold was not as attractive as it used to be, Bitcoin had replaced some of its basic status.

In addition, the active money supply of the Federal Reserve has also promoted the rise of Bitcoin prices. Taking the uncertainty brought about by the global economic crisis into account, the households are saving more capital than usual.

Currently, the size of the stock market is 40 times the market value of Bitcoin. This means that with the continuation of inflation and economic stimulus plans, even the smallest inflow of funds in the stock market will cause significant changes in the price of Bitcoin.

NGK

The above shows the impact of the stock market or macroeconomics on the price of Bitcoin. However, the price fluctuation of Bitcoin has nothing to do with small and medium retail investors. This is because in the Bitcoin market, it is the institutional investors that ultimately profit. If small and medium retail investors want to obtain the benefits from tokens, they must find another way. For example, the NGK market.

At present, the NGK blockchain is a relatively active blockchain in the blockchain market, and the value of its on-chain tokens is also rising. Moreover, the advantages of NGK blockchain are unmatched by other blockchain projects. Besides, it is also friendly to small and medium retail investors, so it is suitable for small and medium retail investors to enter the market.

NGK blockchain