Bitcoin is the Next Gold?

The novel coronavirus has turned the tables for many economic outlets. The game of business is witnessing sudden gear shifts in its locomotion. While interest rates in fixed assets are cutting down and stock markets crashing sharply across the world, the cryptocurrency contrary to its popular belief was not a damsel in distress. ‘Halving’ was already a piece of positive news for many cryptocurrency investors. A notable bitcoin maturation leap also backs this news.  

Bitcoin, since the past decade, has played out well in the economic picturesque. This is evident with the decline of the bitcoin by 45% in 4Q18 when the S&P 500 declined almost by 14%. Bitcoin has managed to be riding high by 9% in 2020 despite a 20% S&P 500 correction. The Covid-19 pandemic has sought out rather good news for the cryptocurrency where it is being seen to have the potential of a risk -free asset like gold.

Bitcoin Maturation Leap, the April 2020 report from Bloomberg, highlights how the pandemic shook up the entire cryptocurrency market and the bitcoin’s likeability to transform into an unstressed asset like gold. As per the report, Bloomberg approves bitcoin’s possible to hold an equivalent value of a quasi-currency like gold.

The estimates came when the bitcoin shattered the predicted 30% loss during the economic downturn by making a decline of just 6%. There is greater open interest in the future with less agility contributing to the steadiness in the performance of the cryptocurrency in the market. These have got experts to give the nod for the bitcoin to have the capability to turn into the digital version of gold. The price plunge, too, will come out to be temporary as per the reports.

The stock market shakeout amidst the pandemic has also paved the way for the bitcoin to come out victorious as a bankable asset. Investments in cryptocurrencies have spiked during the economic downturn. Thanks to the halving and the bitcoin maturation leap, BTC is here to stay. Countries that have never indulged much into cryptocurrencies are suddenly paying attention to the market’s volatile assets.

If the bitcoin wins the title of the digital gold, soon there will be no looking back for many potential investors. AT the end of the day, risk-free and generous return giving investment wouldn’t upset a buyer.