Global wealth advisory says the cryptocurrency is surging along with gold
Cryptocurrencies have seen more than their fair share of volatility but in times of turmoil it appears that investors are willing to load up on the digital assets.
According to the chief executive of financial and advisory firm deVere Group, Bitcoin is likely to benefit from the tensions between the United States and Iran.
“Bitcoin, the world’s largest cryptocurrency by market capitalization, jumped 5 per cent as news of the strikes broke around the world on Friday. Simultaneously, the price of gold – known as the ultimate safe-haven asset - also moved higher,” said Nigel Green.
Bitcoin prices have surged previously during geopolitical flare-ups, notably during the yuan devaluation during the US-China trade war, when the cryptocurrency gained along with global stocks.
“This latest Bitcoin price increase underscores a mounting consensus that Bitcoin is becoming a flight-to-safety asset,” added Green.
He said that Bitcoin is strengthening its position as “digital gold.”
“Bitcoin - which shares gold’s characteristics of being a store of value and scarcity and of being perceived as being resistant to inflation – could potentially dethrone gold in the future as the world becomes increasingly digitalized,” Green opined.
Non-traditional
The advisory chief believes that investors will increasingly view Bitcoin and other secure currencies as a good option with their decentralized, non-sovereign properties.
“The serious concerns created by geopolitical issues, such as the US- Iran issue will likely prompt an increasing number of institutional and retail investors to diversify their portfolios and hedge against those risks by investing in crypto assets,” said Green.
This added interest will boost the value of Bitcoin and some other digital currencies.
“Bitcoin was one of the best-performing assets of 2019 and we can expect to see its investment appeal further strengthen as it becomes known as a safe-haven asset during periods of heightened geopolitical tensions,” concluded Green.
This Fractal Suggests Bitcoin Price Will Explode Past $10,000 https://t.co/CMpWQPszvu pic.twitter.com/ND199Z5IvR
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