The price of gold has been falling more or less since the beginning of the year and is currently down 9%. Bitcoin, on the other hand, has gained quite 50% since the beginning of the year, which is why more and more investors are thinking about investing in cryptocurrencies. They see in the digital currency another safe haven, although this was actually gold. With such a performance, this is not left out.
Gold continues to fall
Within a few hours, the gold price has fallen by around 5%. Actually very unusual that this has such a high volatility. Even though the price recovered quickly, gold is still down. Since the beginning of the year, gold has lost a total of 9%.
Of course, this has also sparked plenty of speculation in the crypto community. Here, many are now wondering whether gold is really still the safe haven it once was or whether it will even be replaced by the digital currency. After all, it’s not necessarily entirely unrealistic once you take a closer look at Bitcoin and gold’s numbers.
Nevertheless, there is no denying that gold is still a safe haven and therefore also a very popular investment instrument. Especially in the current times, which are uncertain and the pandemic has shaken things up quite a bit. But the Covid 19 pandemic has also completely thrown off market cycles and sent the stock market into many ups and downs.
While everyone assumed that the price of gold would remain stable during the crisis, it has actually moved in the opposite direction. At the beginning, gold was still rising and reached an all-time high of almost USD 2,100/ounce. However, after the global economy came back into the recovery phase, the price reversed and gold lost more and more of its value – bitcoin, on the other hand, rose. This year, the price of gold regained some ground and rose to USD 1,900, but fell back to around USD 1,800 shortly afterwards. The price held here for quite a while until the downtrend picked up speed again last week.
Despite the promising news from the US, yellow gold fell by over 2 % in just one day. The situation was exacerbated by the futures market on Sunday evening and gold plunged to around USD 1,685. This is the lowest level since the end of March.
Gold vs. Bitcoin
The digital currency Bitcoin has been compared to the precious metal for some time. In fact, similarities in the two investment instruments have been laid out recently. Some even claim that the Bitcoin is a better version of gold, since on the one hand the transfer is easier and on the other hand the storage is much less complicated.
However, the current price trend also shows that Bitcoin is performing much better. Gold has indeed reacted very positively after the decline and is currently at a price of around USD 1,750, but it has nevertheless lost almost 10% in value since the beginning of the year.
Bitcoin, on the other hand, has also had its struggles, but has managed to gain $15,000 in value in just a few days. Yesterday, it even broke through the 45,000-USD mark. However, this also means that BTC has increased in value by around 50% since the beginning of the year. So who is surprised that such discussions are coming up about which investment instrument is the safe haven and which one is not?!
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