Gold and Bitcoin: A tale of two havens
In less than a decade, Bitcoin has grown into a staggering USD14.5 billion market. Since the beginning of this year, prices of Bitcoin and gold have moved in opposite directions, as shown in the following chart. However, on March 3rd, the cryptocurrency defied all odds by trading at USD 1,292.71, or 5% higher than gold, for the first time in its history. Indeed, this was a defining moment for Bitcoin, but how did it get to that point? How did it manage to lead many to see it as a challenger and viable competitor to the precious metal’s “safe haven” status?