International Journal of Accounting and Management Sciences (IJAMS)
July 2024
DOI https://www.doi.org/10.56830/IJAMS07202407
Authors
Ahmed Zaky Hussein Metwally
Abdalla Ramadan Tawfiq
Abstract
This theoretical study explores the potential of digital currencies as a hedging tool against inflation risks in the context of globalized economic activity. With the increasing interconnectedness of economies and the volatility of traditional currencies, investors and businesses are seeking alternative ways to protect their wealth from the eroding effects of inflation. Digital currencies, with their unique characteristics such as decentralization and limited supply, have emerged as a potential solution. This research investigates the theoretical underpinnings of using digital currencies for inflation hedging, analyzing their correlation with traditional assets and their performance during periods of high inflation. By examining the factors influencing the effectiveness of digital currencies as a hedge, this study aims to provide insights for investors and policymakers seeking to navigate the complexities of the global economic landscape.
Keywords: digital currencies, inflation hedging, globalization, economic activity, theoretical study
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