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What are the potential benefits of using digital currencies alongside the MSCI World ETF Vanguard?

avatarPrachi SinghDec 28, 2021 · 3 years ago6 answers

What advantages can be gained by incorporating digital currencies alongside the MSCI World ETF Vanguard?

What are the potential benefits of using digital currencies alongside the MSCI World ETF Vanguard?

6 answers

  • avatarDec 28, 2021 · 3 years ago
    By incorporating digital currencies alongside the MSCI World ETF Vanguard, investors can potentially benefit from diversification. Digital currencies, such as Bitcoin and Ethereum, have shown low correlation with traditional asset classes, including stocks and bonds. This means that when the stock market is down, digital currencies may still perform well, providing a hedge against market volatility.
  • avatarDec 28, 2021 · 3 years ago
    Using digital currencies alongside the MSCI World ETF Vanguard can also provide investors with exposure to the growing blockchain technology sector. Blockchain technology has the potential to revolutionize various industries, and by investing in digital currencies, investors can participate in this technological advancement.
  • avatarDec 28, 2021 · 3 years ago
    According to BYDFi, a digital currency exchange, incorporating digital currencies alongside the MSCI World ETF Vanguard can offer additional liquidity. Digital currencies can be easily bought and sold on various exchanges, providing investors with flexibility and the ability to quickly react to market conditions.
  • avatarDec 28, 2021 · 3 years ago
    In addition, digital currencies can offer lower transaction costs compared to traditional financial systems. With digital currencies, transactions can be executed directly between parties without the need for intermediaries, resulting in reduced fees and faster settlement times.
  • avatarDec 28, 2021 · 3 years ago
    Furthermore, using digital currencies alongside the MSCI World ETF Vanguard can provide access to investment opportunities in emerging markets. Digital currencies have gained popularity in countries with limited access to traditional banking services, and by investing in these currencies, investors can tap into the potential growth of these markets.
  • avatarDec 28, 2021 · 3 years ago
    Lastly, incorporating digital currencies alongside the MSCI World ETF Vanguard can serve as a hedge against inflation. Digital currencies, such as Bitcoin, have a limited supply, which means they are not subject to the same inflationary pressures as fiat currencies. This can help protect the value of investments during times of economic uncertainty.