Bitcoin (BTC) and gold: The two are often compared with regard to the store of value. Both assets can be used to store value. Bitcoin is easier to transport and sell, but its price is more volatile. Gold is the traditional Save Habour, but not as dynamic as Bitcoin. The picture shows a bitcoin in front of gold pieces.
Bitcoin advocate Anthony Pompliano (aka „Pomp“) from Vocal Bitcoin posted a Twitter thread to educate BTC critics. Pomp sets out his reasons why he believes Bitcoin will remain an excellent store of value.
Bitcoin critics get their fat off
Anthony Pompliano posted a Twitter thread explaining his views on Bitcoin remaining a good safe haven. Pomp examined several theses from BTC skeptics and confronted the critics with his arguments. Why did haters speak out against BTC again this year?
The main reason is the economic shock that occurred in March and April, with Black Thursday occurring on March 12th. At that time, BTC crashed along with the altcoins. The stock market followed, and with it oil, which briefly sank below zero. When the crisis hit, many people started selling not only bitcoin but other liquid assets as well, explains Pomp.
Bitcoin is up 300 percent since hitting March lows
Pomp goes on to say that Bitcoin has now risen over 300 percent since the market disaster in March (seven months later) and is up 83 percent since the start of the year.
In terms of value, it has outperformed any other asset class this year:
Bitcoin is up 83 percent since the start of the year and more than 300 percent since its low in March. BTC has clearly outperformed all other asset classes.
Correlation is currently 0
Pompliano pointed out that the biggest argument the critics used is the fact that Bitcoin was correlated to other assets during the tough times for the economy in March / April.
Critics used this as a basis to say that BTC is not an inflation hedge. Pomp argued that the same thing happened to gold, stocks, and other markets, and that it was a passing thing.
Right now, Pomp tweeted, Bitcoin’s correlation with traditional markets has dwindled over time and is now at zero. He calls BTC an ultimate safe haven and says that BTC couldn’t be more uncorrelated than it is now.
It outperformed stocks, bonds, gold, oil, and pretty much everything else. It also has little to no correlation over a significant period of time. Bitcoin is the ultimate safe haven & the market is proving it.
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