Nigel Green, CEO and founder of the financial consultancy firm, deVere Group, believes that Bitcoin has the power to replace proven safe haven assets including gold.
In a statement released yesterday on the deVere Group’s website, Green said that, with heightened tensions between the world’s two largest economies, the U.S. and China, investors are flocking to safe haven assets, investors appeared to be particularly keen on those not tied to any specific country, which include gold and Bitcoin.
According to Green, “Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven.”
Green then continued to state that the political tensions between the U.S. and China may prompt many savvy investors to increase their exposure to decentralized, non-sovereign, secure digital currencies, in an attempt to shield them from the turbulence taking place in traditional markets.
Since the release of this statement gold has reached a new all time high, just above $1980. This, as the U.S. government announced that it would be passing yet another $1 trillion stimulus in response to the massive economic impact of Covid-19.
Prominent gold investor, Peter Schiff,believes that gold will rise beyond the $2000 mark and argues that the US Dollar’s decline is only getting started.
The U.S. dollar just hit an all-time record low. You now need over $1,920 to buy a single ounce of #gold. But this record won't last long as the dollar's decline is only just getting started. It's about to plunge to new depths taking the American standard of living down with it.
— Peter Schiff (@PeterSchiff) July 27, 2020
Feature image by Sulayman Sanyang from Pixabay