BTC is currently trading at a price around $ 46,000 after appreciating about 60% last year. The largest digital asset by market value hit a record high of nearly $ 69,000 in November. Went up then, more than 4,700% since 2016, surpassing gold.
However, the bank assured that a difficulty that the Bitcoin network has is related to institutional adoption but “it will not stop the demand for the asset.” The cryptocurrency leader has long been called “digital gold.” The criticisms made of gold tend to apply to Bitcoin as well: it does not pay interest or dividends and does not mimic the performance of more traditional assets. SAdvocates claim that Bitcoin and gold are stores of value in the face of high inflation.
Gold, for its part, spent 2021 in comings and goings towards $ 1,800. After a tumultuous start to the pandemic that pushed gold to record highs in 2020, the metal famous for being a hedge against rising prices has failed to capitalize on this year’s scorching inflation. Investors appear to have lost interest, leaving gold to trade in tight ranges for weeks, while holdings of exchange-traded funds shrink.
According to Bloomberg, Spot gold has fallen by about 4% this year, on the way to its biggest annual decline since 2015. A stronger US dollar and the threat of a withdrawal of stimulus from the world’s major central banks have deterred many investors, who saw better opportunities in rising equity markets. The movements in the price of Bitcoin also captured the interest of investors.
“These opposing factors have caused the bullion to move almost magnetically around US $ 1,800 an ounce. Although this is a historically high price, it will be disappointing for those who enjoyed the rise to the record in 2020.”Bloomberg concluded.
Source From: Ambito
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