“Can Bitcoin be the best-performing asset this year?” is the trending question all the investors right now! Bitcoin initially exploded onto the global stage in 2017 with a massive rally that made many early adopters an overnight millionaire. With uncertainty going on around the market, there is a sudden surge in the prices of Bitcoin that has made the cryptocurrency the top-class performing asset of 2020, leaving gold, silver, and crude behind. Bitcoin has already touched the USD 10,939.40 mark by July 30. Meanwhile, in the same period, gold and silver have only risen by around less than 14 percent together whereas the silver actually has fallen by 14 percent and the crude prices have also dropped by more than 70 percent amid the uncertainty in the market.
Both bitcoin and Gold have seen a significant gain since around the mid-March when lockdown measures were introduced in various countries to slow down the spread of the Covid-19 coronavirus outbreak, and uncertainty was prevailing then.
Over the past six months, the prices of bitcoin have risen by almost a third despite the major market crash in March that wiped more than $4,000 from their value.
This speedily Bitcoin price recovery comes in less than two weeks of the rare event known as a halving, where the number of new bitcoins created will be falling by 50 percent. Some market analysts believe that it could push the cryptocurrency price to new all-time highs this year. It is only the third time in the year where halving has happened in Bitcoin’s 11-year history.
The uncertainty in the market has resulted in a global economic pandemic as well that caused a slowdown in the market and have caused a stock market crash, as the investors were looking for more secure holdings, which gold was. That has been the reason why gold has from a previous trend and data proved that it performs well during times of economic uncertainty. However, the new analysis of market segmentation has suggested that the finite supply of bitcoin means that it is increasingly being viewed as a safe asset by the investors. All of this lead investors to questioning “Can Bitcoin be the best-performing asset this year?”
If the quantitative easing caused an uptick in inflation farther than this, bitcoin will be used continuously as a hedge against the global instability by the investors. As the Federal Reserves are loosening their holding strings, the stock market is slowly going down the hills. But it looks like the investors have found Bitcoin to be an asset that can benefit them during this uncertain situation. Also, the upcoming Bitcoin halving is believed to further give a boost to the buying trend in the Bitcoin Market. So, what do you think? Can Bitcoin be the best-performing asset this year? Comment down your thoughts in the comment section below.