According to Deutsche Bank, a prominent German investment bank, investors now prefer Bitcoin (BTC) over gold as an inflation-resistant asset. This further reinforces the now-widespread notion that BTC is the digital equivalent of gold, mainly because of its ability to withstand inflation due to its limited supply. That being said, many now predict that the crypto would soon overtake gold in terms of value and utilization.
Both assets significantly benefitted from the slew of inflation-friendly fiscal and monetary policies introduced by governments and central banks worldwide in response to the economic consequences driven by the ongoing COVID-19 pandemic. However, it’s as if Bitcoin got the majority of it – as it rose by over 144% this year alone, while gold surged by only 22%. Notably, BTC’s price is currently at $17,550 compared to gold’s $1860 per ounce.
The positive developments on the most-recognized crypto do not end there. As noted by Unfolded, the crypto’s global futures market has also notably surpassed its six-month high – now sitting at a total of $52 billion. This unprecedented run follows the steady climb of BTC’s price and volumes over the past few months.
Just this past October 18th, total market of BTC future was only at $4.5 billion. Then just after three days, the figures rapidly ballooned to over $30 billion, and now has been on the rise ever since. This surge last month notably represents a massive increase of over 1,055%, which many now see as genuinely unprecedented.
Interest in the cryptocurrency and its market price is obviously on the rise – and perhaps will persist in doing so in the foreseeable future. Considering that, it is no wonder investors are now swept by their heels over the potential of BTC.