Bitcoin has had its ups and downs since its introduction in 2009, but it’s been on a rocket-ship ride of late. On Sunday, it surpassed the $7,700 mark.
While their units of measurement are not comparable, the falling price of gold and rising price of bitcoin is still nonetheless, significant. Demand for gold, which investors flock to in times of uncertainty and volatility, has fallen since the election on a stronger dollar, signs of future interest rate hikes, and potentially business-friendly policies that may arise from the Trump administration. Those potential regulatory changes would raise the chances of higher-yielding stocks.
Some investors consider bitcoin a safe haven that’s comparable to gold. Like gold, the digital currency isn’t tied to one country or central bank. When a particular country experiences a political or economic crisis, its national currency can often take a nosedive; it’s global nature and usage make bitcoin more insulated from such problems.
Despite their similarities, there’s one key difference: Gold has been much stabler than bitcoin, as we can see in this chart from Statista, which is based on data from Coindesk and onvista. So, for investors looking for a safe bet, the precious metal is still the way to go.