Bitcoin living it's hype of becoming a Digital Gold: Experts predictions
December 15, 2020 5:44 AM
Bitcoin living it's the hype of becoming a Digital Gold: Experts predictions
according to Bloomberg reports.
Bitcoin will mature into a gold-like store of value this year, according to the latest projections by Bloomberg. The financial magazine’s report, “Bitcoin Maturation Leap,” notes that the cryptocurrency is poised for a bull run, after being temporarily dragged by the coronavirus-induced stock market tailspin.
With its correlation to gold jumping to all-time highs, BTC is poised to transition from a risk-on speculative asset to the crypto market’s version of the metal.
“This year marks a key test for bitcoin’s transition toward a quasi-currency like gold, and we expect it to pass,” the report says.
The damage to world economies caused by Covid-19 is prompting governments to dole billions of dollars in stimulus. Bloomberg expects bitcoin to gain amid the circumstances, helped on by mainstream adoption.
For more-established assets, this would be considered a sign of divergent strength. For the nascent crypto, it’s also an indication of a transition toward gold-like adoption, maturity, and performance.
As digital gold, BTC appeals to the cashless internet economy largely on account of its characteristics that include round-the-clock price transparency, and the lack of limits, interruptions, or third-party oversight, notes Bloomberg.
The Bitcoin futures tamed the BTC bull market, a development Bloomberg interprets in terms of the maturation of the cryptocurrency. “Increasing futures open interest, declining volatility, and relative outperformance despite the stock-market shakeout indicate bitcoin is maturing from a speculative crypto-asset toward a digital version of gold,” it added.