Today people are concerned bu economical and political situation and they are trying to find a way to really protect their value instead of holding devaluating fiat money. So we have the following important considerations:
- geopolitical risks. Let’s see what says Peter Shiff about gold and bitcoin and the actual situation.
We agree but also disagree. Let’s see why. Gold is being purchased because of political risks, but we think also bitcoin is in the same direction. Yes speculators are there, but also many holders are there and they are collecting bitcoin for long term holding to protect from inflation and increasing risks on the political and economical scene.
Many actors are doing the same considerations putting bitcoin as digital gold and therefore acting accumulating bitcoin for protecting the value. Infact there are also many other important reasons to escape to value heaven, like:
- US Real estate market is going poor. This traditional market in the US is going worse and this makes other ways of physical value storage as more interesting for investors.
- Recent movements on demand of gold. Technical analysis shows an increase of demand and spiking of price of gold in the past two weeks. Normally increase of demand is because of uncertainly and this leads also to increase in demand of digital gold assets like bitcoin.
We can therefore assume that people are willing to protect against many risks they see today: geopolitical risks, growing inflation, politics of central banks, and finally governments which are trying to dissimulating debt while increasing it more and more.
For all those reasons people are seeing for safe heavens. Gold, silver and bitcoin represent such an escape.