November 30, 2020

Deutsche Bank: Investors give up gold in favor of bitcoin

According to Jim Reed, managing director of Deutsche Bank, bitcoin has recently become more popular in as a means of preserving wealth.

“There is an increased demand for bitcoin withthe side of those investors who used to use gold to hedge the risks of the US dollar, inflation and other such things, ”said Jim Reid (Jim Reid).

Bitcoin has long been called the digital equivalent of gold.given the limited and known in advance the amount of BTC. Many investors emphasize that bitcoin can be used as a store of value without depending on the banking system. Moreover, if the gold rate for 2020 increased by 22%, then the price of the first cryptocurrency increased by 144%.

Reed noted that the rate of the first cryptocurrency roseby a quarter this month, and gold and silver have lost slightly in value, which is strange. The news that pharmaceutical companies Pfizer and Moderna were preparing a vaccine for COVID-19 led to an outflow of money from wealth holding assets, but Bitcoin was not affected.

Earlier, Grayscale Investments managing director Michael Sonnenshein said that investors began to buy bitcoin much more often instead of ETF in gold.