Bitcoin has Maintained its Value Compared to Gold and Stocks: Analysis

Monday 4 April 2020, 4:45 AM AEST - 1 month ago

Three weeks ago, as global commodities markets crashed, Bitcoins price tumbled more than 40% over the course of a few days. In the face of this collapse, critics derided the flagship cryptocurrency for its apparent inability to hold its value in a crisis. In response, analysts are now presenting data demonstrating that Bitcoin has, in fact, been a stronger safe-haven asset than stocks and gold.

Analyst Willy Woo has posted a chart comparing the performance of the S&P 500, gold, and Bitcoin over the past five years. Whereas BTCs remarkable rise in value during this time is well-known, this comparison reveals that the cryptocurrencys recent drop in value is vastly less significant during this time frame.

Woo has tweeted:

Visualising what a 50% pull back in BTC price looks like in the bigger picture next to Gold and S&P500.

This is Bitcoin weathering the biggest crisis we've seen perhaps since the Great Depression… the first big test of its safe haven properties.

Critics may point to the fact that more recent investment in Bitcoin has been far less profitable. However, the fact remains that consistent investment in Bitcoin over the course of the past few years has been a smart move. More notably, Bitcoins recent price drops have not been any more painful than those of gold or stocks. In fact, the U.S. stock market has now returned to 2015 levels, whereas Bitcoin is exponentially more valuable.

Writing on Medium, Sylvain Saurel compares Bitcoin to the stock market and gold over the past twelve months. In his analysis Bitcoin again proves to be by far the best investment choice. The stock market, as represented by the Dow Jones and S&P 500, has lost much of its value. Gold, the traditional safe haven, is up 25%. Bitcoin, on the other hand, is up 35% since this time last year and appears ready fo ...

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