The huge pump has resulted in mass speculation as to why BTC is doing so well at the moment. Political and economic tensions across the globe are on the rise. This has driven people towards safer, offshore investments such as gold and Bitcoin. BTC was being traded at a premium during the recent protests in Hong Kong. This is a prime example of where citizens will look when under threat from governments and banks.
Gold prices have surged recently and since the beginning of the year, the commodity is up almost 10 percent. The recent spike to $1400 has sent gold to a six-year high. This is a sign that confidence in fiat currencies and traditional investments such as stocks is falling.
Bitcoin has also surged recently and is up a whopping 185 percent since January first. However, there is a primary difference between gold and Bitcoin. BTC has pure monetary value whereas gold has an industrial demand in addition to its value as a store of wealth.
“The vast majority of gold’s price is monetary premium, just like Bitcoin. Industrial use does not protect that premium in any way. The premium is based on suitability as a store of value where Bitcoin excels over even gold.”
The vast majority of gold’s price is monetary premium, just like Bitcoin.
Industrial use does not protect that premium in any way. The premium is based on suitability as a store of value where Bitcoin excels over even gold. pic.twitter.com/LXngwYxvDN
— Vijay Boyapati (@real_vijay) June 23, 2019
As Bitcoinist reported yesterday, Bitcoin is just getting started and appears to be embarking on its fourth parabolic phase. Network health has never been higher with transactions, hash rates, and mining revenues at all-time highs.
Naysayers and doom-mongers such as Nouriel Roubini have been silent lately. Their prophecies of a total crypto collapse have not materialized, as Bitcoin rose from the ashes of an 84 percent crash to recover back over 50 percent in just three months.
Escalating trade wars and geopolitical oppression by so-called “superpowers” is on the rise. This is only going to turn more people towards safe-haven assets such as Bitcoin and gold. Both these are likely to rise significantly in value in the near future.
Is bitcoin a better store of value than gold? Add your thoughts below.
Images via @real_vijay, Shutterstock
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