Nigel Green, the CEO and founder of financial consultancy firm deVere Group, says Bitcoin’s recent bullish activity shows it has the power to replace proven safe haven assets like gold.
In a statement on the deVere Group’s website posted July 27, Green said Bitcoin (BTC) is currently living up to its namesake as “digital gold” while it and other cryptocurrencies are more likely to be seen as safe haven assets.
“Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin — which shares its key characteristics of being a store of value and scarcity — could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven.”
The CEO cited increasing political tension between the United States and China as one reason investors might choose “decentralized, non-sovereign, secure digital currencies” as a way to protect them from turbulence in traditional markets.
Green’s comments were made following BTC’s rise to $10,000 on July 26, while the token is priced at more than $11,000 at the time of writing.
Commodity follows suit
Gold has also reached a new record intraday high of $1,975 per ounce as of today amid news the U.S. government would be passing another $1 trillion stimulus bill in response to the economic impact of COVID-19.
Prominent gold bug Peter Schiff has predicted the price of the commodity will continue to “soar” beyond $2,000 as the Fed keeps printing dollars. The U.S. dollar is currently at a two-year low, but Schiff says the decline of America’s currency is “just getting started.”
“It's about to plunge to new depths, taking the American standard of living down with it,” said Schiff. Both gold and Bitcoin may look like better alternatives to some investors should the downtrend continue.