BITCOIN, like GOLD? Posted on 28 Jan

No, of course! By definition, a safe haven asset is characterized by a countercyclical trend with respect to the trend of the stock market. These days, when the central banks are proposing restrictive policies, investors are abandoning the stock exchanges, in search of safe havens. The value of gold increases. In the first week of January it increased by 2 euros per gram; instead, the price of Bitcoin continues to have a negative trend, which began in 2021, finally collapsing to $ 35,000 at the end of January. The signal coming from prices suggests a harsh reality that investors had ignored, namely that Bitcoin and other cryptocurrencies are not a safe haven asset unlike gold. Proof of this are the statements of some analysts: “While we are waiting for the Fed to announce the start of a cycle of rate hikes, gold is holding up well. Support for the precious metal comes from high inflation and the growing volatility of the markets ". "Hundreds of billions of dollars have been burned within a week, patience with the promises of the blockchain world is running out"

Cryptocurrencies and energy absorption: a primary problem.

Furthermore, to date, the issue of energy absorption produced by the generation of cryptocurrencies, in technical jargon called "mining", has not yet been solved, which has distorting effects on the energy market of many countries that have banned by law and in fact, such activities with a harsh repression. Emblematic are the cases of Kazakhstan and China, in which the price of energy is growing at an unsustainable rate for the population and businesses. Certainly of no secondary importance, compared to the negative effects on the energy market, there are also the effects on the environment of mining, which make compliance with the emissions agreements contained in the conventions increasingly difficult. Gold as a safe haven by definition Today, cryptocurrencies and other alternative financial instruments can lead us to believe that it is possible to shelter from crises with "new" safe haven assets. On the other hand, an investment in gold in times of crisis allows you to safeguard your capital. The upcoming monetary squeeze mainly threatens high-growth sectors, such as technology. Inflationary pressures, in a context of strong growth, favor cyclical actions, such as increases in commodities: many commodities have not yet passed on their cost increases to consumers and when this process takes place, consumer prices will soar. The cost of living will be higher than in the recent past and therefore, to safeguard our purchasing power, a check of the portfolio of savers and investors will be needed.

Gold, always gold, is the safest way that Confinvest has been recommending since 1983, to fight and defend ourselves from inflation and to guarantee savings, accumulated with great effort. In addition, a 100% insured deposit is available to customers to deposit the purchased gold material. Free for the first year.

By the Confinvest Press Office - GV