There is an endless debate about whether Bitcoin is digital gold. However, the coronavirus crisis that is now raging shows that Bitcoin is increasingly bonding to physical gold. It seems that the fundamental perception of cryptocurrency is slowly changing. It is no longer a digital tender, but gold.
The coronavirus crisis has contributed to the perception of most investment assets. The crisis, which the UN has described as the worst disaster since World War II, has already claimed hundreds of thousands of lives. Suddenly, only conspiracy theorists are not interested in preserving capital.
Gold trade has changed over the last decades. You only trade a digital print for which you have guarantees. Nobody gives you gold into your hand. A certain role is also played by the fact that, with the freezing of a large part of the economy, trade in this commodity stopped as well.
And it is at this very moment that the cryptocurrencies and especially their king, Bitcoin, are on their turn. Gold that you can carry in your pocket.
According to well-known financial commentator Preston Pysh, only positive news can be expected.
If the paper and physical gold market continues to have a separation in price AND the wait to receive physical gold is measured in monthS, where do you think those paper investors are heading to effectively short fiat?— Preston Pysh (@PrestonPysh) March 30, 2020