Cryptocurrencies
Rocketing Bitcoin Stakes Claim as Pandemic Refuge for Brave
- Jump versus gold spotlights case for Bitcoin as store of value
- Coin’s volatility is top argument against ‘digital gold’ claim
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Bitcoin is seizing the spotlight from gold as a hedge against risks such as further dollar weakness or a pick-up in inflation, after widening its performance lead over the yellow metal.
The cryptocurrency’s approximately 150% jump in 2020 puts the digital coin’s price relative to gold at the highest in almost three years, data compiled by Bloomberg show. The climb comes as investors search for portfolio buffers amid predictions the dollar could drop as much as 20% next year in the economic recovery from the pandemic.