In a recent interview with Bloomberg experts, Nate Geraci, President of ETF Store, while talking about the Bitcoin ETF approval, hinted that younger clients were moving towards Bitcoin citing better investments. He also acknowledged that the demand for investing in BTC had increased, when compared to Gold and said,
“When we talk to our younger clients, we have a core allocation in our portfolios and they’ll ask about that and say well, what about crypto?And if you talk to primarily millennials and ask them which they prefer, Bitcoin or Gold? its a landslide!”
This comes at a time when the battle between Bitcoin [BTC] and Gold in terms of value has been raging. Proponents of the cryptocurrency have proved that BTC is the next big thing in the market and have left no stone unturned in doing so.
CEO and Founder of Digital Currency Group, Barry Silbert, had launched an advertisement that took a dig at Gold and started the #DropGold campaign in an attempt to urge conventional investors to invest in Bitcoin, the ‘Digital Gold.’ Silbert claimed that the campaign aimed at attracting millennials to invest in Bitcoin, rather than Gold.
Gold, being the oldest store of value before the arrival of cryptocurrency, drove people to be reluctant about investing in BTC. This was a common notion among seasoned conventional investors in Gold, who put up a good fight against the king of cryptocurrency.
This debate has brought to light both the pros and cons of Bitcoin and Gold. While BTC has proven itself with respect to being a mode of payment, its volatility is unpredictable. Gold, on the other hand, is seen by many as a safer investment.
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Bitcoin’s 2017 bull run was fueled by FOMO & hype; present run more fundamentally driven, claims report
Here we go again. Another bull run. Another “hype session” among investors as Bitcoin rises again. The cryptocurrency market is well known for its incredible shift in market sentiment, especially on the back of the world’s largest cryptocurrency surging again.
Bitcoin not only reached its 16-month high today, but it also recorded a growth of 15 percent over the week. This has contributed to several analysts and industry insiders speculating how high Bitcoin will go, with Anthony Pompliano claiming that the digital currency will soon cross its all-time-high valuation of nearly $20,000 and reach a massive $100,000 by 2021.
These predictions have definitely contributed to the coin’s growth as while the present surge is similar to the 2017 rally, it’s not driven by FOMO alone.
A recent comparison drawn out by the SFOX Volatility report compared the preset rally with the bull run of 2017.
The report suggested that the rally of 2017 was largely driven by ‘FOMO.’ When Bitcoin started climbing the valuation ladder, word got out and many investors discovered virtual assets for the first time. The rally of 2017 was mainly fostered through hype and speculation, since there were no major readings or past data to back the rising price.
The present run, while similar, is different in some aspects, one of them being that Bitcoin has a larger user base now than in 2017. While FOMO remains a major factor in driving the price up, the current surge is also backed by developments in the ecosystem, such as the entry of retail investors and huge financial/non-financial institutions joining the crypto-bandwagon.
Facebook’s crypto project, Libra, and Bitmain’s pursuit for a U.S IPO have validated Bitcoin and the rest of the cryptocurrency market, a luxury not available to the market of 2017. The present rally thus, is more mature than the 2017 rally as the present market’s fundamentals are more data-driven.
There remain some stark similarities in the trends however. For instance, in 2017, the push from $9000 to $11000 took place in a period of 7 days. The current push from around $8800 to $11000 came to be in 8 days.
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