Despite jitters during March and April, Bitcoin is officially back and is the best performing asset of 2020, out performing the traditional safe haven of Gold to be up almost 20.6% ($7219 to $8712) v’s Gold’s movement of only 11.9% ($1517 to $1698) (01 Jan to 30 Apr).
With continuing market unrest due to the global downturn brought on by COVID-19, investors are putting their money into traditional safe havens such as Gold. But now with the sudden influx of money into crypto, it appears that Bitcoin may also be being used as a hedge against the downturn.
A quick look at Apple’s Stock app on iPad paints a clear picture.
Not only that, the legendary American investor Warren Buffett is obviously spooked. Having only recently got into the Airline sector, he today confirmed he has dumped all his positions in US Airines.
Time to buy?
Perhaps – but what? Arguably it might be time to divest from crypto into stocks and shares which currently look cheap. But some of these companies will undoubtedly not recover to their former glories and some may simply fail.
Crypto on the other hand cannot fail. While the price may go down, it won’t ever go to zero making it currently look like the safest place to be.