Rolling coverage of the latest economic and financial news
- Introduction: Bitcoin bursts through $28,500
- US dollar drops to lowest since April 2018
While bitcoin is rocketing, gold – the traditional store of value – is flat this morning at $1,878 per ounce.
Back in August, gold did hit a record high over $2,000/oz, but has dropped back since.
Gold continues to languish around $1,875 and although that is still the market’s preferred store of value, the ancient relic is indeed looking a little behind the times.
Will be interesting to watch these two assets duke it out in the new year with each fighting for dominance as the alternative store of wealth for the rapid fiat currency debasement going on in the financial system.
Here’s Bloomberg’s take:
Bitcoin has almost quadrupled in value this year amid the global coronavirus pandemic, while the wider Bloomberg Galaxy Crypto Index tracking the largest digital currencies is up about 270% as rival coins such as Ether have also rallied.
The latest price surge continues to divide opinion between those who view cryptocurrencies as a hedge against dollar weakness and inflation risk, and others who question Bitcoin’s validity as an asset class given its speculative nature and boom-and-bust cycles.