The meteoric rise of Bitcoin ahead of gold this fall
Over the last couple of months, the world has undergone a drastic change in terms of life and the way it is being lived. The financial sector, as many would argue, has been hit the hardest and it is extremely difficult to predict just how badly the economy has been affected. Many believe that the world is now entering a recession unlike any other before. This looming sense of fear and anxiety has resulted in many people to take financial matters into their own hands and invest in safe assets that could protect their funds.
If you have been following the news off late, you would know that the value of Bitcoin has increased tremendously over the last eight weeks. This has happened despite the market being in a state of imbalance and the financial economy being down. In fact, Bitcoin’s value has been doing so well that it has even outperformed gold this term.
This is an incredibly rare thing to occur as gold is the one asset that always seems to do well when there is a financial crisis. When the economy is hit, people tend to hold on to gold which results in its price going up drastically. Gold is considered a safe-haven asset during times of distress but this time out, Bitcoin Lifestyle has come out as the bigger safe-haven asset by outperforming gold, crude oil, and various other assets.
A Lot is Changing in the World of Bitcoin
This sudden spike has come just a little before a rare event that is about to occur in the world of cryptocurrency. ‘Halving’ is an event that has only occurred two times before this and in this, the new numbers of Bitcoins produced will be halved. This is why various major firms have acted quickly and purchased a great amount of Bitcoin stocks before the event occurs.
By doing this, the value of Bitcoin has been pressured into going up in the market which has resulted in its price increases in value by more than 50%. This is a big barrier to break as Bitcoin prices were relatively low for the past two years. Ever since Bitcoin hit a huge peak in late 2017, the value of it has struggled to meet the same standards.
Values Fluctuating Everywhere
Gold as an asset has done quite well by itself this time out. This was expected as gold is a safe haven asset that almost always flourishes during a financial crisis. Over the last few months, the value of gold has increased by about 13% while the value of silver has fallen by about 16%.
While this does seem bad, there have been other assets that have even worse results and many assets have struggled to perform during this time wherein people tend to hold on to their safe-haven assets to stay financially safe and sound. The value of crude oil took a huge hit earlier as it plummeted down by about 65%.
What Lies For Us in the Future?
Currently, Bitcoin has been doing better than any other asset on the market, and with the Halving set to decrease supply drastically, it is estimated that Bitcoin value could increase by as much as 150% very soon. The halving event occurs once every four and a half years and it directly results in the supply being cut in half. This adds a lot of value to the pre-existing Bitcoin assets and promotes their exchange too.
Another reason why people have been looking to invest in crypto is because of the current situation with the central bank. With the amount of debt at hand and the global economic crisis, we are very likely to go into a recession. At such times, crypto-assets feel safer. The values of other Cryptocurrencies like Etherium have risen by a good 60% throughout this crisis and it is safe to say that crypto as a whole is benefitting a lot.
Bitcoin’s highest value was in late 2017 when its value was much greater than what it is now. It is to be seen if Bitcoin can replicate the same success for itself one more time or whether it will set a new barrier for itself before plummeting again. A lot now depends on the global scenario and how it changes. Regardless, one thing is certainly for sure; Bitcoin has a good stage right now to increase in value than ever before, and with the spotlight comes a lot of attention from new prospective buyers. This makes Bitcoin one step closer to receiving the worldwide acceptance that it has been craving for.
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