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Investors are beginning to take a new perspective about Bitcoin. They feel this is not a crazy idea. This is one of the reasons for capital flowing into the cryptocurrency space.
There is a very apparent divergence in investor activity making it obvious that Bitcoin and the crypto class, in general, are breaking their correlation with the stock market.
Bitcoin is gaining importance as an alternative financial system. BTC according to the vision of Satoshi Nakamoto is meant to provide for a fairer deal for the common man by protecting him against the dominance of Bitcoin by easing out the control of fiat currencies.
In the recent past, Bitcoin seemed to have demonstrated instances of correlation with legacy markets. However, in recent times the correlation is not obvious.
The relationship between Bitcoin and stocks is not black and white, the correlation was always fluid. Very recently, the annual correlation data Between BTC and Stocks is not very obvious.
Precious metals are established safe havens and reportedly BTC seems to have a strong positive correlation coefficient with platinum.
Despite the arguments on Bitcoin decoupling from legacy markets, several investors look at crypto and stocks as risk-on assets. Some of them do not still believe that crypto is here to stay.
Considering the deteriorating macroeconomic landscape, The US defaulting and money printing during the pandemic Bitcoin’s fixed supply appears to be an attractive proposition.
Meanwhile, the BTC price pump is continuing. Institutional investors are jumping on the bull trend.
Michael Saylor recently tweeted: “There is no second Best. Bitcoin.” Further stated, “The implicit endorsement of Bitcoin by major banks and regulators is going to accelerate the collapse of Gold and the rise of Bitcoin as the preferred safe-haven store of value for both institutional and retail investors.”
Community response: No wonder. Gold is a pain to deal with in so many ways. People owned it only because there was no better alternative. Now there is. Game over. Gold is fool’s gold.
Gold will never collapse because there will always be a real-world use for gold. There is no use for bitcoin. Trading it and speculating on its price is not use. Anything can be a store of value. Tulips were a store of value.
Show me how you teleport gold from one holder to another across the world with no middlemen.
BTC isn’t the only digital asset that can move value. BTC doesn’t ‘teleport’ from one user to another. BTC transactions are slow, expensive, and use an incredible amount of electricity. Other cryptos can move value quicker and cheaper while using a negligible amount of electricity.
