Deutsche Bank: «Investors are increasingly choosing Bitcoin instead of gold”
According to Jim Reed, managing director of Deutsche Bank, bitcoin has recently become more popular as a means of preserving wealth.
“There has been an increased demand for bitcoin from those investors who typically used gold to hedge the risks of the US dollar, inflation and other such things,” said Jim Reid.
Bitcoin has long been referred to as the digital equivalent of gold, given the limited and pre-known amount of BTC. Many investors emphasize that bitcoin can be used as a store of value without being dependent on the banking system. Moreover, if the gold rate for 2020 increased by 22%, then the price of the first cryptocurrency increased by 144%.
Reed noted that the first cryptocurrency rose by a quarter this month, while gold and silver lost slightly in value, which is strange. The announcement that pharmaceutical companies Pfizer and Moderna have prepared a vaccine against COVID-19 led to an outflow of money from assets to store wealth, but this did not affect Bitcoin.
Earlier, Grayscale Investments managing director Michael Sonnenshein said that investors began to buy bitcoin much more often instead of ETF in gold.