Stable gold and volatile bitcoin today are the best assets with high growth dynamics, as practice shows. The situation is associated with a natural decline in the economy of developed countries by more than 1/3 of the pre-quarantine indicators.
Goldman Sachs predicts the biggest three month economic retraction in history is coming up. They think the 2008 crisis is going to pale in insignificance to the Covid-19 crisis.
Unlimited quantitative easing is not going to help matters. Fighting the impact of Coronavirus with money printing will result in huge inequalities between the rich and the poor.
Meanwhile Gold continues to climb. On Tuesday, the XAU / USD rate was $ 1,720. The last time such a peak was observed was in 2013. 14% growth in 1 month. That leaves $ 100 up to the all-time high, which dates back to 2011.
Bitcoin bounced back amid declining stock market futures. The situation took place this Tuesday. 1 bitcoin costs 7 thousand dollars again. E-currency has shown an increase of 90% + since the beginning of this year. Experts acknowledge that bitcoin is gaining momentum confidently and demonstrating encouraging dynamics after the failures of mid-December 2019.
Further, there is a high probability of continued growth because bitcoin is still at an early stage in its cycle. Recall that once 1 bitcoin was worth 20 thousand dollars or more. This happened at the peak of the cryptocurrency market in December 2017.
We are dealing with the concept of Nasim Taleb, because the “Black Swan” happened. This means an incredible or unforeseen event. Against this, the theory of “Great Moderation” was considered, which is characterized by low volatility, sustained growth, and moderate inflation.
As people begin to wonder what their next steps should be it seems the experts themselves are struggling to predict what the best course of action should be. This makes for a volatile situation where hedging one’s money in traditional safe havens might not be as safe as was once considered.