Bitcoin has been named the asset with the highest year-to-date growth in 2020 according to figures released by Pantera Capital. This puts it ahead of assets like gold, oil, and real estate.
Bitcoin enthusiasts have often touted that BTC is the next big investment tool to be used globally, favoring it over traditional investments like gold and stocks. These enthusiasts have reason to celebrate as it was reported on April 29, 2020, by Dan Morehead, Pantera Capital CEO, that the cryptocurrency has surpassed gold in year-to-date performance. Bitcoin has seen 16% growth since Jan 1, 2020, while gold sits at 13%.
#Bitcoin overtakes Gold Year-To-Date.
Bitcoin was born in a financial crisis. It will come of age in this one.
Bitcoin, and cryptocurrencies in general, have always been compared to traditional investments, particularly during the ongoing COVID-19 outbreak. This has brought up a discussion about whether cryptocurrencies are better investments for times of crisis.
Morehead Has a History of Bitcoin Support
This is not the first time that Dan Morehead has spoken positively about Bitcoin as he seems to be a vocal supporter of the currency. In a recent letter to investors, he stated that Bitcoin would come of age in the aftermath of the 2020 economic crisis and would exceed its all-time price. This is a sentiment that Morehead repeated in his latest tweets about the digital currency.
While he has high hopes for Bitcoin, he has made grim predictions about the world economy as a whole. By his account, the incoming global recession will prove worse than anything experienced by the post-World-War world.
Back in July 2019, Morehead had predicted that Bitcoin would get to $42,000 by the end of the year and would get to $356,000 a few after.
In an appearance on the Unchained podcast, he also claimed that the technology behind the cryptocurrency would improve to accommodate more users. This optimism did not extend to all tokens though, as he believes that most altcoins will eventually fail.
That put Bitcoin at $42,000 at the end of 2019, which I know sounds crazy, but essentially we’re halfway back there.
Will Bitcoin Come of Age in a Time of Crisis?
The last few months have been interesting for investing and assets as a whole. The COVID-19 outbreak has had a tremendous effect on the global economy, including cryptocurrencies. Some like Morehead have theorized that Bitcoin will mature during this time and secure its place as the investment of choice during uncertainty.
Its growth this year despite the outbreak could be a testament to this theory. One of the possible reasons for this is that Bitcoin was conceptualized around the 2008 recession and thus, was built to withstand an economic crisis.
Another possibility is that the accessibility of the currency makes it easier to invest in or pull out from during a crisis compared to an asset like real estate.
But not everyone feels this way. Both gold and Bitcoin suffered price slumps in February and March of this year. Gold has since surged, now approaching a seven-year high. Bitcoin, while it has seen some recovery, is nowhere close to a seven-year high. This is often cited by supporters of gold as to why it is the superior investment.