Can Bitcoin Replace Gold In 2021?
Last Updated on 4 May 2021 by CryptoTips.eu
Bitcoin and many other cryptocurrencies are continuing their stellar run of 2020 this year and are showing double or even triple percentage returns for the past few months. On the other hand we see that other safe haven, gold.
Everyone’s favorite store of wealth to protect against inflation has been declining ever since it peaked in August of last year.
"Gold ... has been on the decline since peaking in August last year. Even the chaotic slide on global bond markets in February and March this year failed to fire it up." Observers around the world are realizing that #Bitcoin is replacing #Gold.https://t.co/3m5SthsTJv
— Michael Saylor (@michael_saylor) May 3, 2021
Surprisingly enough, when bond markets slid in February and March this year and Wall Street expected a run in gold, that also faltered. Therefore the question that we’ve asked many times in the past resurfaces again, is 2021 finally the year that Bitcoin replaces Gold as the ultimate safe haven?
Essentially, gold versus bitcoin is past versus present, or as crypto analyst Zhu Su stated back in February already:
In Weimar Era you buy picassos and gold, Movable v immovable new paradigm, big alpha, huge change in who controls wealth, In MMT Era you buy crypto, digital vs physical new paradigm, big alpha, huge change in who controls wealth
Iconic gold bug Peter Schiff, who has admitted that gold is not having a stellar year claims that a rise in price is long overdue though. Over the weekend, he claimed:
It’s ironic that unprecedented inflation is causing all commodity prices to soar, except for gold and silver, the two commodities one would expect to rise the most. Their gains are only being delayed as markets price in higher real interest rates that will never actually occur.
Look like bubbles
Barrick Gold CEO Mark Bristow disagrees though and believes that people are simply blinded by the fallacies of crypto. Speaking on Fox Business over the weekend, he stated that cryptocurrencies still:
Look like bubbles, they act like bubbles, they smell like bubbles.
Of course, given the fact that his wealth and his career is built on mining gold, that is no wonder he should say so, but Bristow is convinced things are about to change. He claims that his biggest problem with Bitcoin is that cryptocurrency is used to “circumvent U.S. regulations around dollar transactions,” or in other words avoid taxes.
That rumored capital gains tax the Biden White House wishes to present sure hangs like a sword of Damocles over the crypto markets then.
EdZbarzhyvetsky / Depositphotos.com