Bitcoin was able to recover yesterday from the strong sell-off last week. The Bitcoin exchange rate is temporarily increased to up to 6.900 USD. The movement in the direction of the North, it was sometimes caused by the announcement of the FED (Federal Reserve, Central Bank of the United States). The FED has announced on Monday that an unlimited amount of money for the Quantitative easing is ready. This message has energized not only Bitcoin, but also a lot of stocks, and especially Gold, which rose today, the strongest rate in the history has experienced. Now, it has been reported an expert from Goldman Sachs and a buy recommendation.What you should buy in the current crisis? Should you buy Gold or Bitcoin? We contrast the two Assets, short and to the point, what might be worthwhile in times of financial crisis the most.
Contents
The FIAT-escape in the direction of Gold has begun
The Coronavirus is from the holds, the markets are still in suspense. The Central banks of this world, with the FED at the top, try to prevent through various monetary policy measures the worst and stabilize the markets artificially. These measures showed until now, but only in the short term, positive effects. But today the markets seem to respond, finally, a positive effect on the decisions of the Central banks.Jeffrey Currie, a commodity expert at Goldman Sachs, said that Gold has now reached a “turning point”. This development was triggered by the announcement by the FED. They said that they will buy an infinite amount of mortgage-backed securities and government bonds to lower borrowing costs. The decision of the US Central Bank would increase liquidity, which in turn would discourage investors to sell their gold items for cash, so Currie.He also added that there is a growing deficit in the emerging economies and the financial instability would leave in the European countries, the investors to seek safety in Gold, a traditional store of value.
We believe that this is likely to lead to similar problems as in the aftermath of the global financial crisis. Accordingly, we are now probably at a turning point where ‘fear’-driven purchases will begin to dominate the liquidity-driven selling pressure, as it was in November 2008.
Bitcoin is Gold in Anything
Goldman Sachs sees so currently a good buying opportunity in Gold, because more and more investors flee to the safe haven, to protect yourself from a possible instability of their own currency. Although Gold has a much longer history than Bitcoin, but the “digital Gold” is physical Gold in Anything. Quite the contrary, Bitcoin can have many advantages over Gold. At the end of both assets by nature are scarce, what can be in times of a crisis advantage.Gold, like Bitcoin, are subject only to the part of the uncertainty on the financial markets. At the beginning of a crisis, Gold normally sells all Assets for cash. Nevertheless, could recover Gold in the past crises much faster than other Assets. Therefore, we can currently assume that it will be running differently this time. For Bitcoin, it looks similar, although it is currently for BTC the first financial crisis. Accordingly, it is difficult to estimate how the decentralized Asset will strike. However, Bitcoin has all the necessary properties to be used as a possible Store of Value considered.You want to buy Bitcoin and you are looking for maximum security “Made in Germany”?Then, the regulated Digital Exchange, the Stuttgart stock exchange is the right choice for you. In addition to low, transparent fees, free deposits and withdrawals, and EUR & BTC, you can find an intuitive operation. Join today for free and see for yourself! Sign up now!
Portfolio diversification is well thought out
We want to give at this point, you no investment decision, but only the various ways to bring its assets by the crisis, show. Because in a real financial crisis are not given many opportunities.Gold is and will always be a crisis-proof Asset. It has set itself over the millennia as a Store of Value, and fulfilled this function until today, with flying colors. Therefore, it is not certainly wrong a certain proportion of Gold in their Portfolio. It’s quite important to hold Gold in the physical Form. Similar to Bitcoin, Not your Keys (Gold), Not your Bitcoin (Gold) is here:. The Problem here is only that you get hardly any physical Gold without extra charge. It is already now a shortage of supply. So, it could be expensive.
Bitcoin is the last lucrative Option?
A further Option is currently Bitcoin. Here the markets are 24/7 open and can be traded online. The offers, especially in times when the demand for physical Assets such as Gold rises extremely, a huge advantage. It is not dependent on any gold dealers and transport companies, but can buy easily online Peer-2-Peer Bitcoin and sell. At the end of a risk investment Bitcoin, therefore it is not recommend certainly to to put it all on BTC. At least if you don’t want to increase his risk.Prepare for the worst. If we should really meet a Hyperinflation, then no time will remain to escape to in the above-mentioned Assets. None of us know currently exactly what is in store for us and whether we already have the worst behind us. Nor do we know how the Bitcoin price will react. There is a high Chance that BTC will follow the price of gold, and also as a rescuer in the Emergency room for the investors to find, however. We remain excited and will keep you posted.Can claim Bitcoin and Gold in the crisis? We really Hyperinflation?Come on in to our Telegram Chat and talk with the experts and the Community!
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