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Cryptocurrencies Bitcoin competes with gold

24/02/2021
Source : ORISHAS FINANCE
Categories: Economy/Forex

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While gold has been in steady decline since the start of the year, the growing interest of big companies in bitcoin leads investors to consider the leader of cryptocurrencies as a safe haven. Jeffrey Gundlach, the boss of DoubleLine Capital LP and a fervent defender of gold for many years, claimed on Twitter on Thursday that he had changed his mind, preferring bitcoin to gold. On the one hand, the announcement by Tesla of the purchase of 1.5 billion dollars worth of bitcoin, the interest of BlackRock, Paypal, MasterCard and Bank of New York Mellon and many individuals for bitcoin, on the other hand, gold has recorded the worst performance of all commodities since the beginning of the year. Proponents of cryptocurrency refer to it as “digital gold”. “Which is fueling bitcoin’s rise right now. It is distrust of central banks and the belief that it can become a currency in its own right, ”says Christian Parisot. Before its capitalization reaches the full value of private sector gold investments, the price of bitcoin would need to reach $146,000 in the long term, according to JP Morgan. According to analysts at JP Morgan, bitcoin volatility has reached 87% in the past three months, compared to 16% for gold”.
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