Nigel Green, the founder, and chief executive of financial consultancy firm deVere Group, has again pumped bitcoin as the ultimate safe-haven asset for investors. In a statement published on his company’s website yesterday, Green routed Bitcoin and its ability to hold its value amid the current global downturn. As he explained, the top cryptocurrency is now living up to its billing as the so-called “digital gold.”
Bitcoin is Now Bigger Than Gold
Green’s statement went on to compare Bitcoin to the performance of gold. As he explained, while the traditional asset has long been a reserve for investors, things could soon change.
“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 pointed out that the world’s expedited move towards digitization could make this process arrive even faster. He also highlighted the constant conflict between China and the United States, the world’s two largest economies.
As Green explained, these political conflicts have already had profound effects on the traditional markets. Investors looking to sit the conflict out and stay safe could end up dumping gold for Bitcoin.
Trade Tensions Pump Bitcoin Price?
Green’s assessment provides insights on Bitcoin’s prospective performance, especially as the much-anticipated trade deal between the United States and China hit another impasse. While aboard Air Force One to Florida earlier this month, U.S. President Donald Trump claimed that the coronavirus pandemic had “severely damaged” the relationship between the two countries, and he wasn’t thinking about a trade deal anymore.
The President has kept a consistent theme of attacking China over the coronavirus, going as far as naming the pandemic the “China Virus.” In his Air Force One interview, he explained that China could have stopped it but didn’t. Thus, he wasn’t ready to move forward with phase two of the deal.
Green added that the tensions had reached a fever pitch. Washington closed down the Chinese consulate in Houston, and Beijing retaliated by closing down its Chengdu-based American embassy.
“Geopolitical issues, such as the U.S.-China spat, will prompt many savvy investors to increase exposure to decentralized, non-sovereign, secure digital currencies, including Bitcoin, to shield them from the turbulence taking place in traditional markets.”
The comments are coming at a particularly impressive period for Bitcoin. The top cryptocurrency managed to cross the $10,000 mark yesterday, marking the first time it crossed the threshold in four months. The asset continued and managed to rise above $11,000 on a 13 percent surge, although it dropped to the $10,800 mark once more.
While it’s unclear whether the China-U.S. trade tensions are propelling the market, it appears to be as good a time as any to invest in the asset. Bitcoin isn’t showing any signs of slowing down. With the traditional stock market posting mixed results, investors looking to protect themselves might want to take advantage of this golden opportunity.