Cryptocurrency

Coronavirus: what Is better to take refuge in Gold or Bitcoin?

The progress of the coronavirus continues, as more cases are confirmed in China and its neighbouring countries, and researchers from around the world work tirelessly to find a cure. However, in a moment of maximum uncertainty such as this, with a great concern in the markets. We must consider which is the best asset in which to shelter while the storm passes: Gold or Bitcoin.

Assets Book Value

To be able to give an answer to which is the best asset of refuge during the crisis of the coronavirus. We must first understand what is an asset store of value. And above all, to understand why gold and Bitcoin are types of these assets. And is that, in simple terms, an asset book value is a financial asset that serves as a haven for capital in times of economic uncertainty, political and social. Therefore, the value of these assets varies directly proportional with respect to the international markets. Which means that, when international markets collapse due to events of a different nature. The value of the assets book value will be maintained or will increase. Making them the perfect place in which to place the capital in turbulent times. Just the kind of time that we could be living due to the coronavirus. As it seems to indicate the strong drop in the bag of china in its opening after the lunar new year. As well as news of a slowdown in manufacturing japanese and Korean due to the expansion of this virus.

Gold or Bitcoin I have there the dilemma

Understood then that is a active store of value, we still have to decide which is the more reliable in this time of uncertainty generated by the coronavirus. To which we can only count on the performance that has had both active, the gold and the Bitcoin, during this health crisis. If we start analyzing the gold, we will see that the price of this precious metal has remained relatively stable since the start of the year. Hovering usually $ 1,560 per ounce, and finished today in the 1570 dollars per ounce. An increase of 1.3% compared to the price that started the year this precious metal: 1559 dollars per ounce. Graph of gold in the last month, A different situation would be experienced by the Bitcoin during the last month. Since, since we started the health crisis in China, the analysts of the crypto market have assumed that the coronavirus could serve to increase the demand for Bitcoin in the short term. And therefore, to increase the price of the criptomoneda. So, for the time of this writing, the Bitcoin is traded on 9244 dollars per BTC. Which represents an increase of 25.97% compared to the initial price of the coin at the start of the year, when it was listed at around 7338 dollars per Bitcoin. Graph of Bitcoin in the last month therefore, and by observing both graphics, we realize of as the Bitcoin has been much more sensitive than gold to the spread of the coronavirus. Therefore, as noted the analysts of the crypto market, a significant amount of capital could be looking for a safe haven in the criptoactivo. Being, in short, much more efficient to preserve and increase the value of our capital than gold. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.

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About the author

Caroline W.

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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