Bitcoin’s instability is the main argument used by cryptocurrency critics as a means of storing value. Even so, the BTC price has calmed down over the last period. This tendency was so significant that many institutions became interested in investing in decentralized assets.
BTC price versus gold and real estate
At the same time, traditional assets holding value, such as gold and real estate, increase their instability. It should be remembered that in the popular opinion these two ways of securing value are considered the most reliable in times of financial uncertainty. The entire behavior of the property brings back memories from 2008. Some investors are looking for another recession on the horizon.
The last 3 years has seen Stocks, Gold and Real Estate getting more volatile. Volatility is a sign of economic uncertainty.
Meanwhile Bitcoin continues its trend of reducing volatility. pic.twitter.com/KtWSc7dOiS
– Willy Woo (@woonomic) January 28, 2021
A lot has changed on the market since 2018. It was then that most financial institutions looked down on bitcoin, not taking it seriously. Three years later, the slogans of volatility are no longer so important.
“Over the past 3 years, stocks, gold and real estate have become increasingly volatile. Instability is a sign of economic uncertainty. At the same time, Bitcoin continues the trend of falling price volatility. “
A summary of the situation on the assets market was presented by Willy Woo – a popular cryptocurrency analyst. Even though the chart does not show the full picture of asset price volatility, Bitcoin in a pandemic crisis offers the possibility of a high return on investment while maintaining high risk. the same cannot be said for gold and bonds.
Not all gold …
So far, gold has been chosen by all investors, big and small, as a protection against inflation. During the raging coronavirus pandemic, investors began to look for other options to secure their assets. Bitcoin is often chosen. The argument about the lack of intrinsic value of BTC ceased to be relevant when investors discovered the importance of the unavailability factor (due to the limited supply of BTC).
In the meantime, bitcoin stabilization will continue until it becomes a stable measure in the eyes of the public. The BTC price will then be high enough.
What is your relationship to the stabilizing BTC price? Will the king of cryptocurrencies stand on par with gold and real estate?