Earlier this month, there were several major developments that involved cryptocurrency. Blockchain pundits pointed out a trend wherein traditional investment companies recognized the potential of bitcoin as a stable inflation hedge. Given the economic uncertainty brought about by the COVID-19 pandemic, many businesses have branched out into decentralised financial platforms.
In fact, financial experts have noted that the majority already consider it a form of low-risk asset. As previously speculated by analysts, bitcoin prices increased a little over 15 percent in the past few days. It reportedly reached a high of $11,000 but dropped back to approximately $10,800.
Nevertheless, this surge appears to be a good indicator that bitcoin is somehow matching gold when it comes to pricing. For several months, its value sat just below $10,000. However, the ongoing coronavirus outbreak is showing people the advantages of investing in blockchain despite the alleged volatility of the cryptocurrency market, reports the Independent.
A statement issued by the chief executive of financial advisory firm deVere Group Nigel Green said: "Investors are flocking to safe-haven assets, in particular those not tied to any specific country such as bitcoin and gold." He added: "Bitcoin is currently realising its reputation as a form of digital gold. Up until now, gold has been known as the ultimate safe-haven asset, but bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven."
"Older people didn't get rich through luck alone, they were brought up to respect money and to save rather than spend," explained Obi Nwosu, CEO of Coinfloor. "For this group of savers, economic volatility threatens to undo a lifetime's hard work – especially since many over-65s lack diversity in their investments – so it's no surprise that more than one in five cryptocurrency owners are over 65."
Data shows that even those who initially had doubts have changed their outlook recently. Low interest rates and an unstable stock market appear to have pushed these groups to invest their wealth into cryptocurrency instead. Right now, the health crisis presented an eye-opening example wherein bitcoin grew from $5,000 around mid-March to the price detailed above.