Bitcoin or gold?
Bitcoin has shown a significant upward trend in recent times. Computationally Bitcoin has thereby a higher net yield than shares and gold.
Up-to-date all Bitcoin Hodler will be pleased, because the king of the crypto currencies rises and rises. The Website Messari.io pointed out thereby that Bitcoin, regarded one a four-year period, cut off better than property, gold and shares.
Does Bitcoin not (yet) correlate with other assets?
Apparently Bitcoin Loophole does have a low correlation with other assets. This opinion used to be widely held by analysts, but was questioned in March 2020 when the test came. Contrary to expectations, Bitcoin did not remain stable at the beginning of the corona crisis. Rather, the Bitcoin price fell in line with the stock market, albeit somewhat less deeply. This shook the foundations of the self-conception of the Bitcoin disciples, who had regarded their asset as an effective crisis precaution.
The reason for the price loss ultimately remains unclear. Experts assume that large investors view Bitcoin more as „shares“ than as „gold“ and have therefore repelled it. Likewise it is possible that with Corona a liquidity crisis broke in. This could have led to investors having to turn their assets into cash. That concerned then shares just like crypto currencies, thereby above all Bitcoin.
Bitcoin works attracting
In the meantime, more and more professional investors have discovered the at least low correlation. They allocate, so Messari, ever more means for Bitcoin, in order to maximize their long-term profit.
Among the large companies that have included Bitcoin in their portfolio are more than 20 financial institutions, such as Rothschild Investment and Boston Private Wealth.
Is there a threat of inflation?
Many people also see Bitcoin as one of the few ways out of the US dollar and the euro. Currently, many major central banks are flooding the markets with money to keep the national economy going. Whether this „Modern Monetary Theory“ will work out remains to be seen. But it seems doubtful that the basic rules of economics can be overridden. An increase in the money supply basically means inflation. Mind you, this does not mean that (disastrous) hyperinflation will occur.
Nevertheless, many investors seem to be worried and want to put their assets in a safe place as a precaution. Real estates are on maximum prices, gold often sold out, stocks are expensive at present. There it is only too understandable that some investors throw also times a view of the technology of the future and recognize the Potenzial of Bitcoin.