In recent years, many analysts have predicted a recession. After many years of booming market, investors worried that a sudden drop could start abruptly sought a way to shift their investments to more stable havens.
The traditional move would be to protect the volatility of stocks with gold. Something that has proven to be an effective method in the past, but a newer alternative is challenging the safe haven of the old school. Launched in 2009, bitcoin ushered in a new era of digital currencies. As the main cryptocurrency, bitcoin has many properties of a currency, but with some unique features that can make it a viable port.
A topic rarely addressed is how the market capitalization of gold is a moving target, as it also drives the rise of bitcoin relative to gold. The good news for bitcoin investors is that, recently, the total market value of gold has reached $ 11 trillion.
But for most investors there is still a lot of room for growth. Paul Singer of NML Capital Limited, said in April, in a letter to investors, that the fair value of gold is "literally multiples of its current price" and that today it is "one of the most depreciated investment assets".
Although it is not possible to predict the future, we can look at the fundamentals and carefully observe the statements of these old guard investors with great experience in the market. If they are indeed right, we are likely to see a correction that will boost the price of gold and bitcoin in the years to come.