Is COVID-19 Proving Bitcoins Worth Over Gold?
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Unless you’ve been living under a rock for the past three months, you’ll have heard about the impact coronavirus has had on the world. The pandemic has brought the world to a standstill but has been able to give perspective on bitcoin and gold and the need for a hedge against such uncertainty that we are going through right now.
According to a report published by Coinbase, the flight to gold has resulted in an unprecedented international shortage. Not only does this prove that bitcoin is superior to the precious-metals but it could be a reliable full of money to fall back on if need be.
The report looks into the efficiency that gold and bitcoin have on the market. With fears of the coronavirus spreading throughout the world, many investors are piling the money into gold to help secure their wealth. As a result of this, gold is currently experiencing a shortage around the world. The report by the platform quotes from several publications that have recently looked into the increased demand for gold and it’s reduced supply.
One report from the LA Times highlights that the gold market is going through a historic squeeze as coronavirus prevents physical trading as demand for gold increases. According to researchers at Coinbase, these shortcomings of the gold market are only proving how bitcoin has an advantage over it.
“The recent challenges of the gold market reveals Bitcoin’s distinct advantage over gold: Bitcoin does not rely on fragile physical supply chains and is truly globally accessible.”