Against the backdrop of a global collapse in oil prices and a slight increase in the price of gold, Bitcoin is showing steady growth. This was noticed by CEO of the fork of Bitcoin 2.0 (BTCU) Mykola Udianskyi .
Oil-producing countries do not want to switch to bitcoin
He recalled that on April 20, for the first time in history, the value of May futures for WTI oil fell to negative values. At a minimum, the price reached minus $ 40 per barrel.
The fall of all grades of oil began in early March, after the failure of OPEC negotiations and the statements of Saudi Arabia about plans to increase fuel production and reduce its cost.
After a sharp drop in oil prices, the OPEC + countries managed on April 12 to agree on a new reduction in oil production, but oil prices could not stabilize at a higher level.
The oil situation and the outbreak of coronavirus are causing investor uncertainty and concern. They are looking for “safe havens” – assets that can maintain their value even in the event of serious economic turmoil to the world.
Usually they prefer traditional assets, such as gold. On April 5, its spot price crossed the $ 1,700 barrier, and now gold is trading at the highest level in seven years. For comparison, a year ago its price fluctuated around $ 1300.
Against this background, Bitcoin stands out strikingly. If the price of oil falls and the price of gold shows a slight increase, then BTC shows truly impressive results. Over the past week, the first cryptocurrency has grown from $ 7,500 to $ 8,900 and continues to move up.
This suggests that BTC is becoming a defensive asset, the CEO of the Bitcoin 2.0 fork (BTCU) is confident.
“In this situation, bitcoin is a cut above oil and gold and becomes a truly safe haven,” Mykola Udianskyi emphasized.
The expert claims that Bitcoin has long ceased to correlate with gold or other traditional assets. According to him, BTC, demonstrating high profitability and low volatility, has become an attractive asset and should be in the portfolio of every major investor.