Cryptocurrencies like Bitcoin have been facing challenges lately. These challenges stem from sanctions on cryptocurrencies from governments and major financial institutions.. It might be a good idea to invest in gold right now, after the recent blows to Bitcoin.
A Good Time for Gold
There have been many criticisms of cryptocurrencies, their rapid rise, and the underlying technology in recent months. However, gold did not suffer from this situation.
Aside from being damaged, it has recently reached $1,350 by breaking a record.. While reaching this record, it had a steady increase of $100 for 3 months.. Of course, when compared to the crypto money market, a $100 increase is not surprising, but on a gold basis, this increase is quite remarkable.
Why Does Gold Make a Profit When Bitcoin Is In Trouble?
While Bitcoin is on the rise, so is gold. but when Bitcoin was hit by blows from China and JPMorgan and it started to fall, gold continued to rise.
As we mentioned and you know, gold is always considered a “safe investment”.. It doesn’t rise too much, but it doesn’t fall too much either.. When cryptocurrencies emerged and experienced an increase of 700% and 800% in a short time, many people started to direct their investments to this market.
However, in difficult times, gold has always served as an “insurance”, especially for investors who want to be cautious.
We said that gold is not going down/up much, but all it takes for gold to suddenly make a significant rise is to see a few major people around the world convert their money to gold.
Events That Benefit Gold
Bitcoin is not the only market experiencing bubble talk and uncertainties, of course.. Such problems can be experienced in almost any stock market.
One of the stock markets that have problems is the dollar stock market.. The recent decline in the dollar is due to the uncertainties in the USA, and the starting point of these uncertainties is the president of the country, Donald Trump.. Trump’s comments on the war on North Korea settled like a stamp on the financial market and dealt a solid blow to the dollar.. Gold, on the other hand, survived this coup and remained stable.
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