The Connection Between Bitcoin and Gold You Might Not Expect

The Connection Between Bitcoin and Gold You Might Not Expect

The comparison is easy to draw: Bitcoin is like gold. In financial circles, there’s a comfort in knowing that the currency you are acquiring can maintain its intrinsic value. Those that buy gold for security are not all that different from people who buy bitcoin and cryptocurrency for the same reasons.

And with recent political turmoil, this feeling of safety may be a factor in the value rise of both—and the rise has been notable.

Gold futures have been on an upswing since 2019. It’s surpassing the last time this happened in 2011 with a bump of $18 USD to $1942 for an all-time high.

Bitcoin has similarly seen another surge, breaking into over $10,000 a coin again after not seeing above four digits since June. The recent peak at time of writing was $11,187.78.

This is excellent news, obviously. Despite the recent events of the Twitter hack giving proxy bad PR to crypto, the currency is still going strong. Even with the sways of volatility, the baseline holding value is massive, significant, and a good sign for it. And we may see gold rise, either in connection, as an influence affecting, or influenced by the most renowned cryptocurrency.

By |2022-08-12T16:08:49-05:00July 29th, 2020|DFN COLUMNIST|0 Comments

About the Author:

Leave A Comment