Not digital currency, gold is the truth when the market fluctuates
According to CNN, the dream of turning digital money into “e-gold” has become a bubble when the price of Bitcoin has lost more than 15% since the beginning of the year. A series of other cryptocurrencies such as Ethereum, Solana or Dogecoin also depreciated sharply in 2022.
On the contrary, the price of gold has increased more than 4% year to date, back to the threshold of $ 1,900 / ounce and starting to head towards a record of $ 2,000 / ounce.
In the context that the US Federal Reserve (FED) is likely to raise interest rates to fight inflation, many investors realize that gold and other precious metals such as silver and palladium are safe havens, not a safe haven, not a safe haven. digital money.
Bitcoin price year-to-date
“Very clearly, Bitcoin is a speculative risk asset, not a safe-haven asset. Bitcoin is not yet ‘digital gold’,” said Swissquote analyst Ipek Ozkardeskaya.
The cryptocurrency market in 2022 is quite gloomy with information about inflation and economic deceleration. Even the fact that Elon Musk, who is a supporter of cryptocurrencies, buys Twitter or Fidelity Investments, which allows users to save in Bitcoin, cannot save the market.
Bitcoin price as of April 28, 2022 has returned below $ 40,000.
Many economists say that no matter what, real gold is still more attractive to investors than digital currencies in the context of high inflation leading to the risk of economic deceleration.
“Gold remains the most attractive asset in history whenever inflation leads to a recession, while other commodities and investment channels suffer,” said Louise Street analyst at World Bank. Gold Council emphasized.
In the same opinion, Wells Fargo Investment also believes that gold is an asset to hold as well as widely recognized for its value and high liquidity. At the same time, gold also has a volatility index that is only half that of Bitcoin, stocks or other investment channels.
With the above argument, Wells Fargo predicts that the price of gold may reach $ 2,100 / ounce this year.
Even not only gold, the USD also has a growth year 2022 compared to cryptocurrencies when the US Dollar Index is up 6% year-to-date.
Obviously, cryptocurrencies are not the optimal choice when economic turmoil takes place.
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at Blogtuan.info – Source: cafebiz.vn – Read the original article here
