CNBC: More and More Bitcoin Investors Moving Away From Cryptocurrencies and Into Gold
There’s no denying that 2018 was the year of cryptocurrencies. Fresh off a $20,000 high, cryptocurrency enthusiasts had no doubt that Bitcoin would continue to soar. New products such as Bitcoin futures began to be offered, promising to revolutionize the financial world. Alas, those hopes were a little premature. While Bitcoin’s price is still twice as high as it was just two years ago, hopes for a quick revolution have faded. In fact, most Bitcoin investors are now planning on investing in gold.
While at first glance that may seem weird, there’s actually quite strong reasoning behind that. For one thing, both Bitcoin investors and gold investors are interested in hedging against inflation, financial crisis, and economic turmoil.
Because both Bitcoin and gold are independent from a central monetary authority and because they both can gain value while the dollar is debased and devalued, they’re both seen as solid alternative assets for those interested in maintaining the value of their savings and investments. With Bitcoin’s meteoric rise in 2017 and 2018, many enthusiasts thought that Bitcoin had made gold obsolete as a safe haven asset. But they realize now that they were wrong.
Bitcoin may still have its day in the sun, but gold is shining brightly right now. And as Bitcoin continues to be range-bound, finding real difficulty in climbing back up above $3,500, gold is looking like a more and more promising investment.
Besides, Bitcoin investors have their finger on the pulse of the economy and they realize that a major recession is just around the corner. If it doesn’t happen this year, it will happen next year for sure. And while Bitcoin may very well be a good safe haven asset during a recession, it hasn’t been tested yet. Gold, on the other hand, has been tested and tried numerous times over the centuries and always comes out on top.
Investors who want to make sure that their assets are protected during times of recession and inflation know that there is no better asset for protecting wealth than gold. So if you’re worried about the value of your investments during a future recession, look to the time-tested power of gold to see you through.