As Gold Reaches a Seven-Year High, Will Bitcoin’s Price Jump With the Halving 18 Days Away
In a statement released by Bank of America, the firm states that gold is set to be worth $3,000 in the next one to two years. Due to inflation, some experts have suggested that bitcoin could also rally significantly as investors flock to deflationary assets.
The US Senate recently approved a $2 trillion dollar fiscal stimulus package as well as lending money to banks so that they may buy bonds of vulnerable companies. This has the effect of devaluing the US dollar, leading to a squeeze on the middle class.
Due to these economic factors, gold has reached a seven-year high of $1,700 per ounce. Bitcoin is due to undergo a supply shift of its own in May which is when the next halving event is due to occur for block rewards.
“The flood of dollars into the market will dilute the value of the dollar. People will move to certainty. There are always only 21 million bitcoin. It is secure in that it will never be diluted by political manipulations.
Gold is nice for jewelry and some electronics and operates by supply and demand, like any commodity. It’s not easy to buy a cup of coffee with gold. Bitcoin is just better currency.”