Bitcoin remains a safe haven above $9.000 USD, outperforming gold so far in 2020, even though uncertainty over the current economic crisis is leading many citizens to place their trust in the precious metal as a safe haven.
In the first half of 2020, gold had an impressive increase of $280 USD, starting the year with an average of $1.520 USD per ounce and closing the month of June with an average value of $1.800 USD per ounce. Analyses estimate that the increase in the value of the precious metal is due to the economic crisis caused by COVID-19, which has generated great anguish and uncertainty in the world's population. According to the data, the population is placing its trust in the precious metal to protect the value of its assets.
Still, despite the figures that the precious metal shows, Bitcoin It continues to rank above it, even though Bitcoin's market cap is much lower than that of gold today.
Bitcoin maintains a capitalization market value close to 166,5 billion dollars, and although this figure represents a lot of money, the truth is that compared to gold, Bitcoin's capitalization does not exceed 3% on average. cryptocurrency The market leader still has a long way to go, but annual figures show Bitcoin outpacing gold by nearly 9,2% in year-to-date growth.
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Bitcoin vs Gold Performance and Analysis
Although Bitcoin is still in a phase of growth, development and maturity, the performance of the leading cryptocurrency has been impressive so far in 2020. Bitcoin started the year with a value close to $7.000 USD, and since January until now, many events have taken place and have had relevance on the value of this cryptoasset.
First, the COVID-19 pandemic, which spread rapidly across the world, is wreaking havoc on the global economy by halting almost all business activities. Then, during the month of March, an event called “Black Thursday” took place, which caused a drop in the values of many assets and cryptocurrencies, including Bitcoin. During Black Thursday, the price of Bitcoin fell below $5.500 USD and the panic of investors began to be reflected in the prices of the cryptocurrency. exchanges, who immediately temporarily closed withdrawals as a precaution.
A few days after Black Thursday Bitcoin quickly recovered and reached a value close to $10.000 USD, just before the third halving Bitcoin price crash took place on May 11. After this event, Bitcoin prices fell again, positioning themselves around $8.700 USD per unit, and then at the beginning of June they rose again and reached a value close to $10.000 USD. Now, after a new fall, the value of Bitcoin is close to $9.050 USD.
Despite these ups and downs in the value of the cryptocurrency, Bitcoin's growth continues to outpace the value of gold, according to Year to Date (YtD) data from skew.
Source: Skew
Data from Skew shows that Bitcoin's value growth so far this year has outpaced gold's value growth by more than 9%.
Bitcoin as a haven of value
While the growth of gold highlighted by Swek is believed to be due to users turning to the precious metal as a stable store of value amid the crisis, many experts also argue that Bitcoin is being seen and explored as a much more reliable and secure store of value. Many more investors, entities and users in general are now using Bitcoin and other cryptoassets as alternatives to traditional assets, including gold.
The market-leading cryptocurrency is recognized as digital gold or the gold 2.0 since it has similar and even superior characteristics to this asset, for example Bitcoin has a limited supply and is a scarce commodity.
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Likewise, several events that have taken place today are causing users to begin to place their trust in crypto assets instead of traditional assets. The measures being implemented by the Federal Reserve and several central banks worldwide to print huge amounts of money may lead to a merciless devaluation of the value of fiat currencies such as the dollar or the euro.
On the other hand, gold is a commodity that can be counterfeited, as recently happened with a reserve of more than 80 tons of gold that turned out to be completely fake, since it was a copper alloy coated with gold. At this point, it is important to highlight that the Bitcoin protocol makes it a system resistant to counterfeiting thanks to the consensus of its thousands of nodes distributed globally, making Bitcoin a safer and more reliable value system for investors and users.
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