Increasingly, cryptocurrency is seen as the best investment in these volatile times, where the global economy has taken a turn for the worst. The ancient investment of gold has always served as the only stable competitor to cryptocurrency’s role as the best investment. Coindesk has since reported that the correlation between gold and Bitcoin has reached an all-time high.
This means both assets are relatively on par in terms of value, representing the first time as such. Coindesk further reported that a possible reason for this increase in correlation could be the dramatic downturn of the US dollar in recent months due to the financial downturn brought on by the global Covid-19 pandemic.
Cointelegraph recently cautioned that crypto-enthusiasts should keep in mind that cryptocurrency is not an alternative to a stable investment in the global capitalist sphere. It is, however, parallel to this, in contradiction to the global system and its regulated nature. Gold should thus still be regarded as the ultimate investment, as cryptocurrency acquisition is not a replacement. Cryptocurrency acquisition should rather supplement an already healthy investment in gold.
As Bitcoin and blockchain are still in the early stages, gold remains more of a safe-haven. As such, in times of economic depression, it is still advisable to turn to gold before a cryptocurrency option.
Cryptolydian recently reported though on the stability of Bitcoin, which remains the most stable alternative to an investment in gold. Bitcoin’s deregulated nature too makes it a more desirable asset. It is not subject to the same level of taxability and regulations as traditional, highly-valuable assets such as gold.