Bitcoin has had its ups and downs since its introduction in 2009, but it’s been on a rocket-ship ride of late. On Sunday, it surpassed the $4,000 mark for the first time.
Some investors consider bitcoin a safe haven that’s comparable to gold. Like gold, the digital currency isn’t tied to one country or central bank. When a particular country experiences a political or economic crisis, its national currency can often take a nosedive; it’s global nature and usage make bitcoin more insulated from such problems.
In fact, the cyber currency, like gold, can benefit from crises and uncertainty. Gold and bitcoin surged 4% and 3%, respectively, after Donald Trump won the election. And some investors are linking the recent spike in bitcoin’s value to the escalating war of words between Trump and North Korean leader Kim Jong-Un over the latter’s missiles and nuclear program.
Despite their similarities, there’s one key difference: Gold has been much stabler than bitcoin, as we can see in this chart from Statista, which is based on data from Coindesk and onvista. So, for investors looking for a safe bet, the precious metal is still the way to go.
- Mike Nudelman/Business Insider