Monday, January 28, 2019

Cryptocurrency capitulation? Crypto investors dump digital currency for paper gold

Perhaps one of the most telling trends occurring in the cryptocurrency industry is not the fact that investors are dumping their digital assets in favor of the paper gold trade, but that these investors are moving from one intangible asset for another.

The mainstreams of both the cryptocurrency community and Wall Street both decry that cryptos and paper gold are money, but in reality they are neither.  The power to use something as a medium of exchange is only one component of what determines whether something is money, and perhaps it is this misunderstanding that sees very few investors in the end holding any real tangible wealth.

The plunge of cryptocurrencies has forced investors to seek other safe havens in traditional commodities, like precious metals. Investing analysts have revealed that many are turning to gold exchange-traded funds (ETFs). 
The world's most popular cryptocurrency, bitcoin, has been trading below $4,000 for nearly three weeks. Other major digital currencies, including Ethereum and Ripple (XRP) have also fallen sharply since the beginning of the year. 
The crypto market selloff has changed the investment climate, CEO of Van Eck Associates told the ETF Edge program. While back in 2017, when bitcoin reached its historic peak above $20,000, demand was “a little bit” shifted away from gold, now investors are reportedly switching back. 
“Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way,”Jan Van Eck said. – Russia Today

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