Is Bitcoin the new gold?

20 January, 2020

The Price of Bitcoin has surged around 20 percent so far this year and according to soe analysts the gains are not over as the world’s most popular crypto currency takes on it’s new role as a safehaven asset.

Gold has long been the go-to investment for investors who want to put their money somewhere in times of troubles such as the threat of wars and economic instability among other things.

Bitcoin is far from overtaking gold as the world’s leading safe haven bets but as recent invents show, it is certainly making some inroads.

"Investment in bitcoin as a potential safe haven investment surged following the US assassination of Iranian general, Qasem Soleimani, earlier this month,"  said Iqbal Gandham, UK managing director of a popular online trading platform.

"There was a 46 per cent increase globally in the amount of opened bitcoin positions on eToro compared to the average in the previous three months. This shows that bitcoin, and cryptocurrencies in general, are increasingly seen by some investors as a hedge in times of geopolitical crises." he added.

Gkillas Konstantinos and François Longin, authors of a recent  paper on the affects of bitcoin on the market, and especially during times of high volatility has provided some valuable insight on how some investors are using the cryptocurrency to hedge themselves during times of turbulent market movements.

They say bitcoin can even be used in correlation with gold to ride out the wild times and protect one’s self from any major movements

"By combining each equity market with bitcoin, we find that the correlation of extreme returns sharply decreases during both market booms and crashes, indicating that bitcoin could provide the sought-after benefits of diversification during turbulent times," say the authors.

"A similar result is obtained for gold, confirming its well-recognized status as a safe haven when a crisis occurs. Finally, we find a low extreme correlation between bitcoin and gold, which implies that both assets can be used together in times of turbulence in financial markets to protect equity positions." they added.

Source   Presented by FIBO Group
XRP Dips Below 0.17967 Level, Down 0.4%

XRP fell bellow the $0.17967 level on Sunday. XRP was trading at 0.17967 by 14:43 (18:43 GMT) on the Index, down 0.40% on the day. It was the largest...

Bitcoin once again a safe haven

Bitcoin has remained well supported in today's trading session after the latest job figures from the US painted a grim picture of the US employment market and the economy as a whole...

Bitcoin Climbs 10% In a Green Day

Bitcoin was trading at $5,352.5 by 03:54 (07:54 GMT) on the Index on Tuesday, up 10.05% on the day. It was the largest one-day percentage gain since...

Bitcoin Falls 11% In Rout

Bitcoin was trading at $4,719.3 by 05:03 (09:03 GMT) on the Index on Monday, down 11.11% on the day. It was the largest one-day percentage loss since...

Bitcoin failed to break above $8K

Bitcoin has lost about 1% in the last 24 hours and traded near $7,900 this morning. During Tuesday, BTCUSD failed to break above $8K, faced pressure...

Ethereum Dips Below 199.77 Level

Ethereum fell bellow the $199.77 level on Tuesday. Ethereum was trading at 199.77 by 03:03 (07:03 GMT) on the Index, down 2.45% on the day...

Cardano Dips Below 0.049 Level, Down 8%

Over the past seven days, Cardano has seen a drop in value, as it lost 15.94%. The volume of Cardano traded in the twenty-four hours to time...

Bitcoin erases 38% of its growth in 2020

The first cryptocurrency falls on the third day, losses amounted to almost 9% per week. On Wednesday, a wave of sales covered other cryptocurrencies...

Bitcoin Plummets $800 in an Hour

Bitcoin (BTC) took an unexpected dive, plunging $600 in a matter of minutes. The plunge saw 15 of the 20 largest crypto assets by market cap down...