In the recent gold rush, digital gold tokens backed by commodities have grown rapidly, but this can only explain why Bitcoin is a better asset. Due to the lack of physical form, it is more adaptable, more durable, and easier to store. It cannot be forged, unlike gold bars.
Due to growing security concerns, wealthy and even precious metal dealers themselves have to move their physical gold stores outside of Switzerland and Hong Kong. If these investors store their wealth in Bitcoin, there will be no physical assets at risk.
The fall of gold may cause the return on investment of Bitcoin to increase by 5 times!
What i believes that it is for these reasons, and more so, that the rebound in gold prices is at least partly due to the redistribution of capital to Bitcoin. Hedge fund managers are very busy, and valuations will soon rise due to insufficient asset supply.
For ordinary investors, it is not too late to enter the market before the upcoming “fivefold” growth of cryptocurrencies. Those who do not want to miss this type of return on investment, or investors looking for what analysts call a “reasonable inflation hedge”, should consider buying Bitcoin from platforms.
This award-winning platforms allows users to trade gold, foreign exchange, stock index, oil, cryptocurrency, etc. using a BTC account. Even if Bitcoin takes away some of the brilliance of gold, gold’s rally may not be completely over. However, in terms of fighting inflation, gold is an old horse, and it has risen from $35 to $2,000 per ounce. Now, it appears on Bitcoin, showing the world why it will be the leader in the future.
What does the influx of encryption technology mean for Bitcoin?
For a long time, cash is king, but the dollar is slowly dying out. The U.S. dollar is facing fierce competition from currencies such as the renminbi, gold and cryptocurrencies.
The printing of money supply related to the stimulus policy and the inflation caused by the quantitative easing policy put world wealth at risk because it is mainly denominated in US dollars. In order to avoid this situation, some people have moved to safe-haven assets.
Gold may have a longevity and trust side, but Bitcoin does not need trust at all and is currently a better safe-haven asset. The supply of gold is limited, but the supply is unknown. However, due to the design of Bitcoin, the hard cap of Bitcoin is 21 million Bitcoins, and the circulation is even less.
The reason for the decline was the take-profit exit or the re-allocation of funds?
It is still uncertain whether this sharp fall is a natural profit-taking after such a strong rebound or the earliest sign of a market reversal. It could also be a hedge fund manager redistributing funds to more profitable companies, or diversifying wealth-Bitcoin has recently been used to do this.
Gold’s recent surge was eclipsed by a single-day drop of $100
Since the outbreak of the new crown epidemic in early 2020, the new crown flow has shaken the global economy, and the value of gold trading has increased by more than 37% from low to high, at US$500 per ounce. When fear enveloped the investment world, people began to switch from legal tender to hard assets such as gold.
However, Russia’s prediction of a new crown vaccine at the end of the year put an end to the seemingly endless rise of precious metals. The price of gold suffered its worst one-day drop since 2013, falling more than US$117 per ounce, or more than 5%. Since the end of the Great Depression of the last century, gold has never suffered such a blow.