Deutsche Bank noted the recent growth of Bitcoin Profit relative to other inflation hedging assets.
BTC has risen 70% over the past six weeks as more investors start to view it as a credible investment asset.
Over the year, Bitcoin is up nearly 150%, topping gold by a significant margin
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As Bitcoin’s price begins to stall after the recent rise, its appeal as a store of valuable assets has not waned, according to Deutsche Bank.
As the libertarian finance blog Zero Hedge reports, the investment bank’s chief credit strategy officer Jim Reid has taken note of the alpha currency’s latest moves.
Bitcoin is up + 3% overnight and seems to be building its own momentum. It has risen by over 70% in the past six weeks as more investors begin to see it emerging as a credible asset to invest in .
Going further, Reid said, “One of the quirks has been the dramatic divergence between gold (-3.6%) and silver (-4.4%) on the one hand and Bitcoin (+ 13.4%) on the other hand.
And that “there also appears to be a growing demand for the use of Bitcoin where gold was used to hedge dollar risk, inflation and other things.
Bitcoin has long been touted as a new and better form of (digital) gold due to its limited supply and ability to store value outside of the traditional financial ecosystem.
While Bitcoin is up almost 150% this year, gold has gained just over 20%. The commonality is that the inflation-boosting monetary and fiscal policies introduced in response to the coronavirus appear to fuel both assets.
Since the pandemic struck, central banks have tried to soften the blow by easing policy, launching programs to inject liquidity into economies around the world.
Under these conditions, many investors are looking for inflation hedging assets, and if Reid’s comments are any indicator, they are increasingly favoring Bitcoin. As of this writing, bitcoin is priced at $ 17,697, while gold is at $ 1,863 per ounce.