Bitcoin Is the Most Profitable Asset of 2020 Amid Coronavirus
Most Profitable Asset of 2020
Bitcoin, the first-ever digital asset, proves its existence as a profitable asset even in critical conditions amid Coronavirus outbreak. However, it lost half of its value in mid-March, but it managed to go upward and witnessed a great sudden surge in the last week of April. Gold also maintains its position, but it is still behind the Bitcoin in YTD. Moreover, other stocks also felt a great pressure of COVID-19, including record low oil prices.
In 2020, Bitcoin has become a victim of volatility as its price value shows high and low-price figures. In mid-February, BTC price surged to $10,446 making the biggest move so far, but this high figure did not maintain for long, and value went as low as $4,111 in mid-March. The Coronavirus fear was the main reason behind the record crash of BTC value when it dumped by nearly 47% in one day from $7,717 to $4,111.
Bitcoin Leaves Traditional Assets Behind Including Gold
As most people called Bitcoin a “safe-haven” asset, the coin has also proved this statement true to some extent as price value again surpassed the key figure of $9k yesterday. At press time, it is trading at $8,849, and it is up 23% in the year to date.
Gold, on the other hand, also makes a bullish pattern in the year to date performance. However, it also went down to as low as $1,491 after WHO declared Coronavirus a pandemic, but it managed to overcome the losses. Currently, it is exchanging hands at $1,675/oz, and its price value is up 9.5% YTD.
Both Bitcoin and gold cross stocks in yearly return, and comparatively, Bitcoin even also leads the gold as the most profitable investment in 2020. The US stock indices saw a major crash amid COVID-19. For example, Dow Jones Industrial Average (DJI) see a 15.7% decrease since the start of the year, while the S&P 500 is also facing bearish pressure with a 10.6% decrease in year to date.
In a comparison of the leading digital asset with the traditional assets, Bitcoin takes the position of the most profitable asset of 2020 so far. Crypto maximalists believe that price will go up further as the most important event in Bitcoin’s history, BTC halving, is approaching.
In its recent report, Grayscale propagates Bitcoin over fiat currencies by saying,”Fiat currencies are at risk of debasement, government bonds reflect low or negative real yields, and delivery issues highlight gold’s antiquated role as a safe haven. There are limited options to hedge in an environment characterized by uncertainty.”
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