Bitcoiners Increasingly Dumping Bitcoin for Gold Investments in 2019
Following the ongoing slump in the price of bitcoin and other blockchain based virtual currencies, experts in the finance sector including the CEO of Van Eck Associates, Jan Van Eck, has revealed that more and more cryptocurrency holders are now pumping funds into gold as a means of diversifying their portfolios, reported CNBC on January 26, 2019.
Hodlers Losing Faith?
While 2017 was a year of the bulls, with the price of bitcoin (BTC) rising all the way to $20K, 2018 saw the return of the flagship digital asset from the moon and the bloodbath seems to have continued even in 2019.
Now, according to a CNBC report, cryptocurrency investors are now actively investing in gold, in a bid to hedge against the current condition crypto markets.
Present at CNBC’s ETF Edge program anchored by Bob Pisani, Jan Van Eck revealed that a recent survey carried out by his firm, involving 4,000 bitcoin traders, showed that most of the people who previously invested in bitcoin and other cryptoassets have now taken gold as their number one investment.
In his words:
“I do think that bitcoin pulled some demand away from gold in 2017. Interestingly, we polled 4,000 bitcoin investors and their number one investment for 2019 is now gold.”
Bitcoin Down, Gold See’ Minor Surge.
Per CNBC, whilst the price of bitcoin was busy making new all-time highs in 2017, gold, on the other hand, rallied 4 percent.
However, the bitcoin bear market has now turned the game on its head, stripping bitcoin down 82 percent of all gains it made two years ago, as the price of gold is up by 2.5 percent. Sadly, some observers have opined that it might take a very long time before the entire cryptocurrency markets get back to the levels of 2017.
Tim Seymour, founder and chief investment officer of Seymour Asset Management, noted that digital assets have lost a significant amount of liquidity and they are nearly lost the battle to become a store of value.
“Not only have we lost all liquidity on the underlying cryptoassets, but truly outside of the existential blockchain argument, it’s been tough to argue store of value,”
Seymour said, adding,
“Gold remains an undisputed store of value.”
Despite the depressing market conditions, firms in the cryptospace keep creating innovations aimed at promoting widespread adoption of cryptos.
On January 24, 2019, BTCManager informed that Bitfury’s Lightning Peach team had launched a series of highly functional tools to make superfast bitcoin payments a reality through the Bitcoin Lightning Network.