The Safe-Harbor Claim of Bitcoin shines brighter than Gold

The history of Bitcoin as a safe haven in times of economic turmoil around the fire place.

For many, the year 2020 has begun there, where 2019 has stopped. Bitcoin ended the year with a net profit of 92 percent. A large part of this increase was less fueled by internal improvements in the fundamentals of Bitcoin, as the assessment of the market to the Bitcoin attached. It’s a shift followed. One that was taken of the main pillars of the crypto-Kingdom to the eye, but a lot of newcomers surprised. Bitcoin was to make his claim as a “safe haven” revival, what one of its three long-term goals, namely the creation of a digital value storage system, inspired.

In the year 2019, from Venezuela to Hong Kong, increased the trading volume of Bitcoin on the Peer-to-Peer exchange, local bitcoins, as the political economy collapsed. The story in the year 2020 is no different. Less than a month after 2020, the Bitcoin has risen by more than a quarter of its value and traded at a year high of 9,300 dollars. One of the main proponents of Bitcoin as a Safe-haven theory, is joined the Bitcoin as a COP and head of research at Fund, Thomas Lee. In a recent Tweet Lee highlighted the year 2019 and the rise of Bitcoin in comparison to Gold in the year 2020 – its “store of Value opponents”. While the digital Gold recorded in the year 2019, a huge increase of 92 per cent, was recorded in Gold, although it has risen to the highest level since 2013 and a recipient of capital flight in the crisis countries, a “ridiculous” increase of 18.4 percent.

Bitcoin is the best performing asset class YTD +26%… demand for “safe haven” is boosting Bitcoin and arguably, #Bitcoin is seen as a better “safe haven” than $Gold #gold

Gold is up a decent 3% vs a whopping 26% for Bitcoin

— Thomas Lee (@Fund entered) January 28, 2020

Less enemies and more in line, Bitcoin and Gold had a good year, regardless of the difference between the two. The correlation between the raw material and the crypto-currency has reached in the last months of the year 2019, the highest level since three years. With the killing of Iranian commander Qasam Soleimani by a U.S. drone attack reported Bitcoin and Gold almost the same time, massive increase, with the price of Gold in the hour when the message was known, increase of about 3.5 percent. Both Bitcoin as well as Gold saw a further boost, as Tehran struck back with an attack on a U.S. base in Iraq.

As tensions between the U.S. and Iran cooled off, it came in the case of two assets to swing a Price. While the gold price stabilized, however, was the elasticity of Bitcoin to the East. The price of gold is since the Iran events in the range between 1.560 and 1.570 Dollar relatively stable, while Bitcoin reacted to the outbreak of the Coronavirus in the Chinese city of Wuhan bullish, as many experts stated. As the number of deaths rose by victims, increased the price of Bitcoin. Due to this argument, some experts have archived. that the safe-haven effect, and once again, now under medical Reserved.

Although there is little evidence to suggest that there is a direct temporal relation between the price of Bitcoin and the outbreak of the Coronavirus. However, must not be underestimated that the S&P500 fell by about 2.8 percent, since the cases accumulated in Overseas, while Bitcoin has risen by 3.6 per cent. A causal relationship is at least questionable.

Featured Image: Iaremenko Sergii | Shutterstock