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Bitcoin or gold? The coronavirus has proven which the better safe haven asset is, says analyst
(Kitco News) - Bitcoin has risen 48% since the start of 2020, far outperforming gold, and this may be due in part to the coronavirus, said Clem Chambers of Investorshub.com, who considers the largest cryptocurrency to be the “flight asset of choice”.
“Bitcoin is now proven to be of use, because you can buy it and turn it into fiat very, very quickly and very, very easily international. So, if you had to make plans quickly, as a lot of people in Asia I’m sure are worried about being kettled in their cities, not just in China, you’d want to have the ability to take $100,000, $200,000, a million five million dollars worth of assets abroad with you,” Chambers told Kitco News.
Bitcoin is expected to go through a process known as “halvening” this year, where the supply of bitcoin will drop in half.
“In May, the reward is going to half, and every now and again, probably every four years, the reward halves and the supply of new bitcoin that enters the market drops. If you could imagine it with gold, it would be like half the gold miners stopping digging up gold every four years,” he said.
Chambers added that bitcoin halvening will produce a “very clear bull market” for prices.
