Bitcoin is having quite a good year and demonstrates strong price that recovered after the stock market collapse on “Black Thursday” in March.
BTC has passed a test of strength by coronavirus.
After the stock market collapse happened due to COVID-19 on March, 14th, all eyes were turning to gold prices as it had always served as a store of value. As a result, the demand for the precious metal has gained over 15% since the market collapse. Bitcoin grew by over 150% since March when it crashed below $4K, recovering faster than any other asset.
According to the Bloomberg Crypto Outlook report dated by April, 2020, Bitcoin’s transformation into safe asset accelerated due to the disruption of the financial system by coronavirus.
Considering the fact that internal BTC indicators remain high, the review demonstrates that COVID-19 accelerates BTC productivity even more than the whole crypto market. In the June report Bloomberg predicted that BTC price may double in 2020 in comparison with the maximum of last year – $14 000.
Despite all these predictions, the information about institutional acceptance and even some rumors that PayPal is going to offer BTC sales to 300 million of its users, Piter Shiff believes that it is gold that will become the leading asset, and Bitcoin will hardly approach to the new maximums.
Piter Shiff claims BTC is nothing compared with gold. Gold prices have shown significant increase over the recent several months but it was stimulated by central banks’ interest and investors reacting to the money printing policy of Fed.
One of Twitter users forwarded his comments to famous “gold-defender” Shiff, “Gold reached its peak over 8 years ago, and now its price gets back to this level, while BTC value is gaining over 150 000%. So who has been mistaken for all these 8 years? Bitcoin is on bullish way and is moving higher if you are still denying these obvious things”.
On June, 28 Shiff responded on Twitter, “I am just saying about the last 2.5 years. I was wrong not buying BTC 8 years ago. But anyone who is still keeping Bitcoins is making a mistake since it should be sold out 2.5 years ago. Gold is likely to reach new historic maximum in 2020. BTC will not even come close”
This time Shiff is not alone in his predictions. Morgan Stanley Wealth Management IT-director Lisa Challet confirmed that the US dollar may soon get to its peak, and gold will definitely start working in these circumstances. Challet said, “dollar can be close to new heights. If it weakens, this can be a good time for investors to consider adding gold to their investment portfolios”.
The most interesting thing about these comments is that we have already seen hundreds of them over the history of crypto. It would be enough to remember how many times well known investors and billionaires announced BTC was dead.
But the global quarantine has only accelerated crypto acceptances. Now, when someone is trying to persuade us that traditional assets may save the world, it looks ridiculous. How much gold you should buy to protect your funds? And how much money you have? Those who have millions of dollars can easily buy 1-2 kilos. And what should the rest do? Turn to crypto.