Ever since the cryptocurrency craze has reached new levels, Bitcoin (BTC) – and other major cryptocurrencies – has exploded. Most cryptocurrencies are vying to reach for the moon – while some are closer than others. The king of cryptocurrency stands at $57k, teasing its all-time high level while the queen of the market – Ethereum – established a new all-time high at $2,135
Various cryptocurrency investors and fans have been vocal about the potential of Bitcoin replacing gold as the safe haven asset. The major investment bank, JP Morgan & Chase Co., had stated in the beginning of the bull run the fight between Gold and Bitcoin has already begun.
The coronavirus played a significant role in fueling the position of Bitcoin as a safe haven asset as the stock market throughout the world were in the grips of the bears while the cryptocurrency market was soaring high. The potential of the money that could have been made with investing stimulus checks in the crypto market made dollar signs shine in investors eyes.
A Twitter user by the name of Spencer Schiff has furthered the duel between Bitcoin and gold with some statistics. Per Schiff, Bitcoin has gone up by 100% in the first quarter to 2021 while gold has declined by 10%. This shows the rising interest in Bitcoin as a safe haven asset.
Can Bitcoin (BTC) break through the stronghold of Gold?
Through one lens, it seems plausible while not so much through another. Bitcoin and gold has no comparison through fundamentals. Whereas gold has intrinsic value, Bitcoin’s value is fickle. The high volatility and absence of any value may not allow the cryptocurrency to overthrow gold