Because gold prices have fallen due to inflation, most fund analysts and investors feel that bitcoin is better than gold, and that bitcoin will eventually displace gold in the long run.
Although the crypto market may appear to be in turmoil, Bitcoin is gaining ground on Gold as the most popular asset for storing value.
The crypto market’s recent price declines could be the result of investors’ growing concerns over the possibility of Coronavirus-related lockdowns.
It’s worth noting that the Coronavirus epidemic has caused havoc in a variety of economic sectors around the world.
For years, the war between Gold and Bitcoin has been heating up, and now some of the most powerful and well-known market players have joined the Bitcoin camp.
According to Anthony Scaramucci, the founder of Skybridge Capital, “everyone who learns about BTC ends up investing money into it.”
Scaramucci believes that Bitcoin will hit $500k in the not-too-distant future. Another well-known individual who has been pro-BTC is Paul Tudor Jones.
Bitcoin is currently trading at roughly $56,765, down 13.5 percent in the last seven days and -3.9 percent on a daily basis.
However, it appears that the price drop has impacted the majority of other cryptos as well, indicating a broad market change.
The price of gold has lately risen to a five-month high, which technical analysts such as Gary Wagner blame for rising inflation. Gary is a member of the Gold Forecast team.
According to him, the price of gold is inextricably tied to the value of the dollar, and as the currency’s value falls owing to inflation, the price of gold appears to rise.
Fear of inflation has impacted the gold market, causing the asset to fall by 0.7 percent in the last week alone. This came after a remark by Christopher Waller, a member of the Federal Reserve Board of Governors, endorsing the Central Bank’s decision to continue with quantitative easing measures that have been linked to inflation.
When it comes to selecting an asset as a store of value, market trends over the previous few years imply that fund managers are increasingly favoring Bitcoin over Gold.
Mike Novogratz, the CEO of Galaxy Digital, stated in a report for the third quarter of this year that gold has been surpassed by Bitcoin as the asset offering a superior store of value.
Mike said, “Bitcoin is now universally accepted, with over 200 million users worldwide.” For an asset that has only been there for a decade, this is a remarkable accomplishment.
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