What are the crisis currencies gold and bitcoin doing?

The assets Bitcoin and Gold, which are often referred to as crisis currencies, have not yet been able to convince Block-Builders.de in the eventful year 2022.

A new infographic from Block-Builders.de shows how the two systems are doing in concrete terms.

Both Bitcoin and gold are currently trading lower than during the start of the Russian invasion of Ukraine. In the case of the largest cryptocurrency by market capitalization, BTC, the minus of 49% is particularly significant. Of the Gold prices, meanwhile, are 2% lower than on February 24, 2022.

Many market observers had forecast a significantly different scenario in the situation we are in – including geopolitical risks and a rapid increase in inflation. This is how inflation concerns, which were increasing worldwide, became apparent in the winter of last year referred to as a “supportive factor for the Bitcoin course”, or Bitcoin or Gold Investments specifically recommended as a precautionary measure.

And indeed: there is Parallels between gold and bitcoinboth goods are limited, the creation of new units is in stark contrast to fiat money [Papier-Geld, Geld der Zentralbanken] only associated with a high energy consumption. In theory there is much to be said for inherent protection against inflationbut in practice it has been so far only insufficiently proven – at least in the case of Bitcoin.

at gold things look different: standing here significantly more historical data available, which paint a completely different picture.

According to Vanguard, the short-term inflation protection of an asset class can best be measured by its inflation sensitivity measure the extent to which an asset’s return increases when inflation increases by one percentage point. As the infographic shows, investors in the euro area were able to In the past, it is best to hedge the portfolio with commodities and gold. On the other hand, other data shows that while gold does not always offer protection against “normal” inflation, it does proven so far in times of hyperinflation Has.

Remains to be noted: The first test in the face of a massive surge in inflation failed bitcoinbut also Gold remains below expectations in 2022. If, contrary to expectations, it is not possible to curb the dynamic and to get the supply chain problem under control, then this could be the case However, both assets will show their strengths in the future. Only time will tell.

Click here for the detailed article with further interesting information and clear infographics: https://block-builders.de/narrativ-broeckelt-alleged-crisis-currencies-gold-und-bitcoin-notieren-lower-than-before-the-russian-invasion/

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The article is in German

Tags: crisis currencies gold bitcoin

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