Gold and Bitcoin are getting stronger. Both turned out to be some of the best assets in 2020. The dollar, on the other hand, is weakening.
Bitcoin is currently hovering around $ 10,300, gold is still growing and the USD is more bearish.
The most powerful asset
Gold is one of the most powerful assets this year on the background of the economic crisis due to COVID-19. It is also possible that inflation will occur, from possible fiscal and monetary measures. Some see this rally as a strong reason for the structural weakness of the US dollar. Gold currently excels in performance and continues to grow.
In contrast, the dollar will continue to weaken, probably until the November presidential election.
Cryptoworld and digital currencies
Bitcoin remains the most powerful in the cryptoworld. And it held on steadily even during the pandemic. At first its price dropped slightly, but later on it was stabilized. During the pandemic, people began to realize the need for a stable currency they could rely on.
During the pandemic, governments also realized that finances as we know them today are outdated. And also that currencies need to be approached differently. China and some other states are currently working on the digital currency of the central bank – the CBDC.
Impacts of the pandemic
Bitcoin and other digital currencies withstood the crisis caused by COVID-19 and came out victorious so far. Investors began to pay more attention to cryptocurrencies and the cryptoworld in an effort not to lose their money.
On the other hand, we do not know yet the exact effects of the pandemic, however it is starting to become clear that it will change many things that were taken for granted for long, such as approach to cash and payment system.
The pandemic tested us all. Whether in terms of economics, private life or finance. It inflicted hard blows and forced things to move. Now we know where to go and we need to stick to that direction. The transition to the digital world is inevitable.