{"id":46545,"date":"2020-04-24T09:01:48","date_gmt":"2020-04-24T09:01:48","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=46545"},"modified":"2020-04-24T09:01:48","modified_gmt":"2020-04-24T09:01:48","slug":"bitcoin-to-be-digital-gold-in-2020-says-bloomberg-report","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=46545","title":{"rendered":"Bitcoin to Be Digital Gold in 2020, Says Bloomberg Report"},"content":{"rendered":"

\"Bitcoin<\/p>\n

Bitcoin will mature into a gold-like store of value this year, according to the latest projections by Bloomberg. The financial magazine’s report, “Bitcoin Maturation Leap,” notes that the cryptocurrency is poised for a bull run, after being temporarily dragged by the coronavirus-induced stock market tailspin. <\/strong><\/p>\n

With its correlation to gold jumping to all-time highs, BTC<\/a> is poised to transition from a risk-on speculative asset to the crypto market’s version of the metal.<\/p>\n

“This year marks a key test for bitcoin’s transition toward a quasi-currency like gold, and we expect it to pass,” the report<\/a> says. The damage to world economies caused by Covid-19 is prompting governments to dole billions of dollars in stimulus<\/a>. Bloomberg expects bitcoin to gain amid the circumstances, helped on by mainstream adoption.<\/p>\n

Per the report, despite BTC<\/a>’s annualized volatility that’s averaged about 5x that of the S&P 500 in the past year, the crypto is down 5% in 2020 against 22% for the stock index as at April 2. Bloomberg said:<\/p>\n

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For more-established assets, this would be considered a sign of divergent strength. For the nascent crypto, it’s also an indication of a transition toward gold-like adoption, maturity and performance.<\/p>\n<\/blockquote>\n

As digital gold, BTC<\/a> appeals to the cashless internet economy largely on account of its characteristics that include round-the-clock price transparency, and the lack of limits, interruptions or third-party oversight, notes Bloomberg.<\/p>\n

The report shows BTC<\/a>’s decline this year<\/a> holding above its 2018 low “which was about an 80% drawdown from the peak.” The stage for a strong comeback is set. It states: “On sounder footing after its previous shakeout, bitcoin is gaining relative fuel as stocks reset, if history is a guide.”<\/p>\n

While Covid-19 will witness the enduring decline of cryptocurrencies, BTC<\/a>, is considered a hedge asset, that will appreciate. “The macroeconomic effects of the coronavirus accelerate bitcoin’s process of gaining value relative to other cryptos.” In the year to April 2, BTC<\/a> outperformed the Bloomberg Galaxy Crypto Index, surging 40% versus 13% decline in the index.<\/p>\n

\"Bitcoin<\/p>\n

The Bitcoin futures tamed the BTC<\/a> bull market, a development Bloomberg interprets in terms of the maturation of the cryptocurrency. “Increasing futures open interest, declining volatility, and relative outperformance despite the stock-market shakeout indicates bitcoin is maturing from a speculative crypto asset toward a digital version of gold,” it added.<\/p>\n

What do you think about bitcoin becoming digital gold? Let us know in the comments section <\/strong><\/em><\/p>\n

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The post Bitcoin to Be Digital Gold in 2020, Says Bloomberg Report<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n

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