TL; DR breakdown
- Gold prices have fallen due to inflation
- Most fund managers, analysts and investors agree that bitcoin is better than gold
- There is a general consensus that bitcoin will destroy gold in the long run
While the crypto market seems to be experiencing a bumpy moment, bitcoin is rising against gold as the most preferred asset for storing value. The drop in cryptocurrency prices may be the result of growing investor fears amid reports of possible coronary quarantine. It is worth noting that the outbreak of the corona virus has wreaked havoc on various economic sectors around the world.
Gold has fallen
This fear has also affected the gold market, which has returned 0.7% of its assets last week alone. This followed a statement from the chairman of the Federal Reserve, Christopher Waller, of funding from the central bank to continue easing measures that are known to cause inflation.
Recently, the price of gold has reached its highest level in the last 5 months, something that technical analysts like Gary Wagner attribute to rising inflation. Gary works with Gold Forecast. According to him, the price of gold is directly related to the dollar, and when the value of the currency decreases due to inflation, the price of gold seems to increase.
Bitcoin is valued as a premier store
A look at market dynamics in recent years shows that fund managers are increasingly supporting bitcoin versus gold when settling on an asset to store value. Galaxy Digital CEO Mike Novogratz, in a report for the third quarter of this year, noted that gold has been surpassed by BTC as an asset that provides more value. Mike went on to point out that Bitcoin is now widely accepted and has more than 200 million users worldwide. This is a great achievement for an asset that is only a decade old.
Bitcoin will surpass gold
The battle between gold and bitcoin has been raging for years and now some of the top and most reputable market players are in the BTC camp. According to Skybridge Capital founder Anthony Scaramucci, anyone who learns about bitcoin will eventually invest their money in it. Scaramucci is positive that the price of bitcoin will reach close to $ 500,000 in the future. Paul Tudor Jones is another popular figure who has been a fan of Bitcoin.
At the time of writing, Bitcoin is trading at about $ 56,765, down 13.5 percent in the past seven days and -3.9 percent daily. However, price reversals seem to have affected most other digital currencies as well, making it an overall market change.