Gold or Bitcoin (BTC), your heart swings? Bloomberg predicts the...

The year 2020, which is already talking about it in the cryptosphere, was above all marked by a strong correlation between Bitcoin (BTC) and gold on the markets. In question, several factors such as the global pandemic, financial uncertainty and the elections in the United States. But is this the first time that we have observed such a correlation? We went to investigate the predictions of Bloomberg and the various world observers for you to deliver our analysis on the incredible rise of two assets as sparkling as the other. And finally, what if you choose the best of both worlds for your investments? We deliver everything to you in this new article.

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Warning : This article is brought to you by the company Vera One. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.

Bloomberg combats Bitcoin and gold

In a recently published report and already very divided, the visionary eye of Bloomberg made the whole cryptosphere dream by aligning predictions for the least optimistic: according to our famous analysts, the new digital gold would reach 100,000 dollars in 2025, no you are not dreaming, it is a number to thrill more than one.

Their calculation is simple, starting at $ 10 in 2011, the cryptocurrency was content to add zeros consecutively. Bitcoin therefore took about four years to go from $ 1,000 to $ 10,000 in 2017, therefore a “doubling of the maturation of the facts” would make it pass to $ 100,000 in 5 years. Does all this seem very simple to you? We went to investigate a little further and what we discovered is not going to leave you indifferent.

First, Rising Bitcoin Prices Creates Increased Demand and not supply since by nature the number of bitcoins on the market remains stable and makes it a scarce asset, like gold. This explains whywith each boom in its price, Bitcoin marketing is guaranteed and thus naturally attracts new investors, from all walks of life.

With less than $ 200 billion in capitalization, Bitcoin is still too modest for large institutions like central banks, but as its price increases, it could rise to the same level as gold.

Secondly then, Bitcoin tends to look more and more like gold. Just as Bloomberg announces that Bitcoin will flirt with $ 14,000 before 2021, he also analyzes that cryptocurrency is more and more correlated with gold: the graph below also shows the biggest Bitcoin / Gold correlation since 2010 over 12 months :

Bitcoin-gold correlation since 2010 on a chart according to Bloomberg

Bitcoin-gold correlation since 2010 on a chart according to Bloomberg

Bitcoin-Gold correlation since 2010

Thirdly, Bitcoin would therefore become a new version of gold, it is not for nothing that many analysts already called it l’or digital : indeed, the digital asset is increasing considerably and most indicators are green for widespread adoption and an appreciation of its price, despite its scarcity which makes it a sought-after asset.

bloomberg chart showing the evolution between Bitcoin and gold since 2016

bloomberg chart showing the evolution between Bitcoin and gold since 2016

From yellow gold to digital gold

It is not the crisis that will disrupt this trend, which, as Bloomberg indicates, has already been observed for a long time. It remains to be seen if these analyzes will be confirmed, in the meantime, we are continuing our analysis in what explains the strong correlation between yellow gold and digital gold.

Bitcoin Vs Gold: tell me where you put your money I’ll tell you who you are

In the battle between Bitcoin and Gold, the investor is king.

Indeed, on closer inspection, will Bitcoin manage to overtake gold as a safe haven for institutional investors?

Eye looking to the future

Eye looking to the future

Golden vision

It is true thatin times of crisis gold and bitcoin are safe investments, as they have proven over time by their strong correlation. It is explained by the macro hedging allowed by these two rare and precious assets used against inflation and devaluation of fiat currency and more traditional actions in the stock market.

Bloomberg figures thus confirm that cryptocurrency is by far the best performing asset in this year 2020, with an increase of 66%, ahead of gold which however peaks at record amounts. Yield is undoubtedly the competitive advantage of digital gold over its metal alter ego. But, beyond even the correlation between Bitcoin and Gold, the real question is who will reign supreme in the coming years? In other words, Will the Gold Rush version 2.0 actually happen?

With current negative interest rate trends, investors are paying banks to ensure liquidity, but capital flight away from bonds risks tipping the balance towards Bitcoin, even if Bank of America announces an upcoming rise in gold to settle at $ 3,000 per ounce.

To observe the choices of Saylor for Microstrategy, many institutional investors risk being inspired to no longer buy only gold as a simple refuge but also invest heavily in new digital gold, without restraint.

We went to push the reflection as far as Russia where Bitcoin would now be more popular than gold among investors. Indeed, it is the World Gold Council (WGC) which reports the info : out of 2023 investors surveyed, 68% of participants said “gold is considered an effective store of value”. However, in a chart that illustrates investments in Russia over the past 12 months, cryptocurrencies represent a higher percentage than gold: 17% vs. 16%, everything is relative, but it should be noted.

World Gold Council Survey Shows Cryptocurrency Investment the 5th Most Popular in Russia

World Gold Council Survey Shows Cryptocurrency Investment the 5th Most Popular in Russia

Investments made in Russia in the last 12 months by WGC

On the side of our Russian neighbors, Bitcoin would therefore be a serious competitor to gold which will have to demonstrate its interest in the years to come if it wants to retain its place as an all-time safe haven.

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Even though Bloomberg notes a bullish rally in gold through 2023, what about Bitcoin’s run to zeros?

Bitcoin meteorite about to break through the sound barrier?

bitcoin with gold pieces

bitcoin with gold pieces

The rise of Bitcoin, at the speed of light

The Bitcoin rally is indeed pushing the world’s first cryptocurrency ahead of gold and silver, and some of our friends across the Atlantic would even have called it le Paypal Bump, due to the very recent announcement of lopening of a new service by fintech already very popular around the world.

In addition to this phenomenon that we could anticipate, and despite a decrease due to the coronavirus pandemic, Bitcoin on the verge of one of the biggest increases in its history potentially far exceeding that of 2017.

With the strong correlation observed vis-à-vis gold, the famous cryptocurrency is moving from a risky speculative asset to a crypto version of the yellow metal.

To the moon and back ?

In any case, this is what many analyzes show. Here, in this graphic produced by Fork, we even go so far as to read that Bitcoin would be a new precious commodity, having supplanted gold and silver :

Fork graph showing the curves of gold, silver and bitcoin in one year

Fork graph showing the curves of gold, silver and bitcoin in one year

A year of history written by the 3 precious metals

Although the $ 13,000 is not the last level reached to date by Bitcoin, according to our data it would be the 20th largest increase in a day since September 21, 2019.

The Paypal announcement will therefore have caused a stir in the meteoric rise of encrypted metal.

But, according to Mike McGlone’s predictions, gold could reach $ 7,000 by 2025. According to him, the same monetary conditions which made it possible to multiply the price of gold by 7.5 between 2001 and 2011 are visible today, so put your bets!

tweet from Mike McGlone and his predictions on the bull price of gold

Mike McGlone's tweet and his bullish gold predictions

Tweet de Mike McGlone

Really, your heart is still swaying and all these predictions make you say that taking the best of both worlds would be the more informed choice?

We have the solution for you.

VeraOne: a golden project

hand receiving the gold VRO token

hand receiving the gold VRO token

closer to you my gold

We presented them to you previously, and no matter how much we turn the project around, we are still convinced. For those who have not followed our latest papers, VeraOne is the stablecoin made in France which allows you to own physical gold via cryptocurrency and all in a simple and secure way. The little extra? They use recycled gold, and as we told you in a previous article, it is a crucial point of the future development of the gold market to ensure its reserves.

With VRO, it has never been easier to solve the endless questions you have between choosing Bitcoin or Gold: 1 token VRO = 1 gramme d’or, the answer is ready-made, and if you want to get started, nothing could be simpler, we already explained the procedure in TCT:

  • Create your account on the VeraOne platform
  • Verify your identity with KYC verification (fast and efficient)
  • Acquire VRO tokens with Bitcoin or Ethereum
  • The Gold Rush has just started making history in encrypted form!

Still wondering what a VRO is? The VeraOne (VRO) is an ERC20 token based exclusively on physical gold, stored in highly secure areas, at the Ports Francs of Geneva.

Finally, to reassure you, they have everything planned: VeraOne ensures the security of your physical gold while Ngrave provides security of your VRO tokens, it is in any case the promise of a beautiful golden end of the year.

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We hope this analysis has inspired you, and if your heart is still wavering, take advantage of the curfew to take a look at our articles. in the alternative investment forum! to continue to learn more about alternative investments, the history of the oldest precious metal in the world and its new adventures with digital gold. And above all, keep an eye, the end of the year may be crazy!

Karen is passionate about new technologies in general, and blockchain in particular! Uncovering news trends, the latest market developments, and nuggets of the ecosystem, she is happy to help you discover this universe in all its colors.

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