Bitcoin is currently performing much better than gold (which has been undergoing significant circulation problems in recent days) and is rapidly becoming more attractive to investors, driven by expectations on the halving.
Coinbase reaffirming its February report seems to agree with this, and a recent report comparing the market efficiency of gold with that of Bitcoin shows a clear advantage of the digital asset over the metal.
Distribution over acceptance
Bitcoin has weathered this pandemic much better than any other asset, as it is easier to circulate despite how volatile it can be. However, some physical commodities such as silver and gold, still appeal to investors who fear the volatility of cryptocurrencies, according to the LA Times.
“The gold market in New York is facing a historic squeeze as the global pandemic chokes off physical trading routes at the same time that investors are piling into the metal as a safe haven.”
Gold is a winner on the stock market
The demand for gold has been constantly increasing over the past few months. Richard Hayes, chief executive officer of Perth Mint — Australia’s official bullion mint — addressed this situation, speaking about the complications of transporting and costing gold, as well as fiat, which in some countries cannot be deliberately printed, but still has exaggeratedly large handling costs.
“This is an unusual situation where you’ve got plenty of physical metal, it’s just in the wrong form and in the wrong place,”
Bitcoin better than gold and the S&P 500
Meanwhile, bitcoin continues to be mined and circulates normally without any difficulty, even maintaining a steady growth since the price drop it suffered in late March where all markets were drowned in a bloodbath.
BTC is currently balancing between $8,663 and $9,100, seeking to break the resistance of $9000 in which it is stuck since last April 28.
Despite what some economists or critics may think, all these characteristics are making it gain more confidence and demand day by day, unlike fiat and commodities.