Our grandmothers bought gold and kept it in storage, every saving was put into purchasing gold, and they were on to something. Gifts given in gold were very common in marriages, makes us wonder will Bitcoin be the Gold of the New Age?
Lets see how the markets have reacted in the last few weeks with regards to the No.1 metal and No.1 Cryptocurrency.
Both Gold and Bitcoin have got boost in last few weeks and they have joined ranks with the currencies in terms of volatility. Both the assets are treated as traditional and non traditional safety trades.
With Gold at multi year highs and Bitcoin up by almost 400% from the start of the year, investors are getting very interested in getting onto the trades involving these 2 assets.
Bitcoin is not tethered to the USD like Gold is thats why Bitcoin keeps going higher and higher while Gold is seeing a whipsaw movement at the multi-year highs. So if USD rallies Gold will take a hit.
Lower interest rates makes Gold holding a lot cheaper.
The main reason why Gold and Bitcoin has accumulated gains is due to anti-Dollar sentiment for safe haven. While Gold can be stored physically, in today’s day and age Bitcoin has sure made the headlines and it will remain interesting to compare these two assets over the coming years.