Investors have been switching assets to bitcoin in the hope of its huge price increases continuing, with gold price rises recently stalling. According to one analyst, the market cap of cryptocurrencies was equal to just 2% to 3% of the market cap of total liquid tradeable gold in the market Dec 11, 2017, but has now grown to 23%. However, the volatility of bitcoin, together with the launch of derivatives based on the cryptocurrency, could persuade investors to switch back to gold.
Investors have been switching assets to bitcoin in the hope of its huge price increases continuing, with gold price rises recently stalling. According to one analyst, the market cap of cryptocurrencies was equal to just 2% to 3% of the market cap of total liquid tradeable gold in the market a year ago, but has now grown to 23%. However, the volatility of bitcoin, together with the launch of derivatives based on the cryptocurrency, could persuade investors to switch back to gold.