Bitcoin Becomes the Best Asset of 2020 Overtaking Gold
The recent surge in Bitcoin price has made this popular cryptocurrency the top-performing asset of the year 2020. Before this recent crypto surge gold, silver, and crude oil were ruling the charts. In the last three to four months, Bitcoin price has risen consistently, keep aside the major crash in March which wiped off over $4,000 from its value.
In the meantime, gold has only grown by nearly 13 percent. On the other hand, silver prices fall by 14 percent and crude oil has been suffering a huge setback because of less demand; its price fell over 70 percent.
Bitcoin recovery was fast and not many expected it to be so fast. But credit should be given to the Bitcoin halving event which was very near. The rare event of halving means the number of new cryptocurrencies created will fall half. In Bitcoin’s 11 year history, 2020 halving is the third time. It was a much-awaited event of the year, many market analysts believe it is the much-needed catalyst which will push Bitcoin price to an all-time high by year-end. Fingers crossed!
Both Gold and Bitcoin have seen a significant rise since mid-March, especially when countries across the globe started introducing lockdown measures to control the spread of the Covid-19 Pandemic. This led to a global economic slowdown and stock market crash. Investors from around the world are now looking for a safe haven to secure their holdings, nothing better than Bitcoin.
Gold has performed consistently well during all economic crisis, but recent data suggests that Bitcoin is becoming a safe haven asset for many investors because of its finite supply. Following the halving event, Bitcoin has been surging ahead. Investors from around the world are anticipating a positive impact. Because of tightening the Bitcoin supply which comes once every four years, Bitcoin demand will increase.
With the recent trend market, analysts believe there will be a 180 to 200 percent rise of Bitcoin price in the coming few months, from the lows of December 2018. From a wider perspective, government debt and growth in central bank easing are two main reasons why many feel the need for alternative assets. Storing wealth in alternative assets will help investors avoid major depreciation which is on the cards now.
Other digital currencies such as Ether and Litecoin have performed much better in recent times than Bitcoin. Ether experienced gains of over 60 percent since the early days of 2020. However, investors believe Bitcoin is by far the best investment option even though Ether and Litecoin are breaking all previous records. In recent times crypto trading has also increased in many places, investors feel it is the best time to safeguard their wealth. The year 2020 has been promising for Bitcoin giving investors and enthusiasts new possibilities. Hope this trend remains by the year-end too!