Crypto assets have a bad reputation of being too volatile and risky, due to which several countries have banned them. However, recent reports suggest the cryptocurrencies have progressed better than gold, the asset considered to be the most “stable and secure” asset.
As per the data released by crypto exchange Huobi Global, in collaboration with Data Light, a cryptocurrencies analytics firm, most of the top digital coins, including Bitcoin, Ethereum, Litecoin, and Ripple, have been performing much better than gold in the past few months. One might argue that these tokens are too volatile, citing the severe crash of 2018, but the resurgence in the market since February this year tells a different story altogether
Many crypto experts have stated that Bitcoin will cross its all-time high of $20,000 in the next few months, while some are betting that it will break the $100,000 mark by the end of 2019. The current bull run is quite different to 2017 since the market has matured, and the investors have become much more aware in the last two years.
Gold, on the other side, has been more or less stagnant, rather than being stable. If it would have shown steady growth in value, it could have been a much better investment prospect. Moreover, recent data shows that millennials, who are expected to rule financial markets for the next few decades, are quite passive towards gold, and more interested in cryptocurrencies.
Also, the global adoption of cryptocurrencies is on the rise, especially after the emergence of countries like Venezuela and Russia on the scene. Add to that the launch of Facebook backed Libra stablecoin, and you’re looking at about 2 billion additional users. So it’s simple math, more users mean increased demand, and hence increased value.