As more and more corporations and institutions are now considering the digital currency Bitcoin, Gold has started to lose its value battling the rising behemoth. Multiple reports from Bloomberg have indicated that Gold is slowly losing its priority over Bitcoin as the cryptocurrency has seen an extreme amount of gain in value due to the constant popularity gain, attracting all sorts of traders, making it currently the king of all cryptocurrencies sitting at about $1.6 Trillion in value.
Many famous Gold Bulls, such as Jeffrey Gundlach, have surrendered to the crypto monster, admitting that Gold is no longer the better investment.
Gold mining cannot compare to the might of Bitcoin mining which can be farmed literally anywhere around the world as long as the proper hardware and equipment are available. COVID-19 has had no effect on Bitcoin mining, clearly making it the superior asset rather than Gold, which requires a lot of workforces all sorts of heavy machinery.
According to Bloomberg strategists, Bitcoin is rapidly outpacing Gold in getting into portfolios, “the process is accelerating,” stated the strategists in a recent crypto paper. Adding to that, the paper also mentioned that Bitcoin has switched from being a risky asset to a globally stable bank-of-value, expected to increase at a rapid rate as more and more of the world is evolving, switching to completely digital means.
Bloomberg’s report predicts Bitcoin price to skyrocket much more, reaching the $100,000 range target, significantly pushing Gold back further and further.
Bitcoin’s Volatility Problem
Even after all this, Bitcoin is still showing signs of volatility, confusing many traders on the performance of the currency. Due to the recent corrections in the market, there was a huge fall of value in the space which had a significant effect on almost every currency, with Bitcoin dropping from an all-time high of over $58,000 to a low of around $47,000, resulting in many famous Bitcoin Trusts such as GBTC (Grayscale Bitcoin Trust) dropping into the negatives.
Currently, Bitcoin is recovering back. Analysts are still fairly optimistic that Bitcoin is expected to reach $100,000 in value. Famous Bitcoin trader, Capo of the Crypto, who is known for his famous predictions, has also predicted once again a huge recovery of Bitcoin in the coming months. Co-founder of Magnetic expressed his opinion in which he thinks that Bitcoin may even reach a value of around $150,000 in a time span of a year from this point.