Both bitcoin and gold had seen noteworthy profits since around mid-March when all nations announced lockdown measures to curb the spread of Covid-19. The lockdown impacted the stock market immensely and shocking the global economy.
Over the course of recent months, the value of bitcoin has ascended by almost a third despite a global market crash in March that knocked more than $4,000 (£3,200) from its value.
An unexpected hike in the value of bitcoin has promoted the cryptocurrency to become a top profitable asset of 2020, toppling gold, silver, and crude oil. In the same time span, gold has scaled by around 13 percent, while silver has dropped by 14 percent, and crude oil has fallen by 70 percent in value.
Gold has generally performed well, especially during economic vulnerability; yet, market data recommends that the limited supply of bitcoin indicates it is progressively being recognized as a safe investment.
It is the third time a halving has occurred in bitcoin’s 11-year history, and some market experts trust it could push the cryptocurrency price to newer heights in 2020. Other cryptocurrencies have done far better than bitcoin, with ether (ethereum) showing 60 percent gains since the beginning of 2020.
Article Credit: The Independent/Bloomberg/Economic Times/CNN/CNBC