We rushed to it. We win it. We wear it. It’s gold, and it’s long been a valuable and safe commodity in the United States. Before we started taking on debt from foreign countries, gold was the standard that backed every piece of currency floating around our country. It doesn’t quite have that job anymore, but gold is still seen as a safe investment, one that can hold its value during tumultuous market storms as well as periods when the market is doing well.
And now some are wondering if Bitcoin has come along to steal the show.
In an article published recently by The Street, some comments from KICKICO CEO Anti Danilevski assert that Bitcoin is behaving in a similar way to gold — and sometimes even better. And when you look at the evidence Danilevski presents, it’s pretty convincing.
“During the last year S&P 500 index was decreased, gold increased by 14.4%, whereas Bitcoin increased by 74.9%,” Danilevski told The Street. “During the last five years, S&P 500 increased by 68.8%, gold decreased by 26.5%, whilst bitcoin grew by an impressive 24.9%.”
It’s true that Bitcoin has been on a fairly meteoric rise. At the time of this writing, 1 Bitcoin is equal to $4,577.23. Compare this to gold, where 1 gold ounce is equal to $1,308.22. And while the two aren’t remotely comparable in terms of what they are — gold is a tangible thing, and Bitcoin is an electronic cryptocurrency — it’s tough to ignore the fact that, as of late, Bitcoin has grown more reliably as the market has grown, and gold hasn’t.
So what are investors to do? Ditch gold and go with Bitcoin instead? James Trescothick, a senior global strategist at easyMarkets, appears to support that move. He told The Street that he used to advise investors to place 10% of their wealth in gold. Now? Trescothick believes investors should place 10% in Bitcoin and hope the currency doesn’t come crashing down.
The journey of Bitcoin has certainly been an interesting one to watch. Those who got in on the ground floor, some investing large portions of their savings, have seen huge returns. The cryptocurrency has now garnered the keen interest of economists who want to better understand it, and investors who exchanging cash for Bitcoin in hopes the currency will continue to grow.
And how can we forget the miners? Those who work behind the scenes, decrypting blockchains in exchange for a some Bitcoin of their own, have become investors of sorts in the currency, too, buying or building PCs in an attempt to profit from Bitcoin while it’s still on the rise.
It’ll only get more interesting from here. And you can be sure we’ll be covering every bit of it.