Markshire
Introduction
The year 2020 is going to go down in history for a number of reasons. The first being the Coronavirus pandemic and its wide-scale global destruction it caused. The second being the world witnessing its worst health and economic depression in the last one hundred years. Lastly, 2020 also showed us that there is a new emerging financial asset dominating the global investment landscape- Bitcoin.
The year 2020 saw Bitcoin outperform solid assets like Gold and Oil handsomely. In reality, this is a situation, which even the best financial experts did not predict. Why Bitcoin rose against all expectations, experienced its greatest Bull Run ever during the pandemic is something, which is quite inexplicable.
In this article, we are going to look at which among these three commodities is an investor favourite in 2020. In addition, we are going to suggest which of these three will emerge stronger in 2020 as a favourable investment opportunity.
Gold, Bitcoin and Oil- How did they fare in 2020?
- Oil-
If you have been reading the news, you will be familiar with the fact that oil prices hit rock bottom because of the pandemic. In fact, the global demand for oil fell so sharply, that oil traded internationally in negatives for the first time ever.
The sight of stranded oil tankers in the global seas was something, which no one could have imagined. The US stabilized oil prices, but demand continues to be quite low. With the global economic depression experiencing a slow bounce back, oil is going to continue seeing tough days in the near future.
- Gold-
Many traditional investors continue to consider gold as the best hedge against rising inflation. People like Warren Buffett have been found to invest heavily in the yellow metal in 2020. Luckily for investors, gold has continued to hold its value and grow in small increments.
At a time when the global economies are looking to print more money to control the contraction, experts predict gold will continue to climb. This means that as an investment option, gold is likely to climb in value well into 2021 as well.
- Bitcoin-
It would not be wrong to say that Bitcoin has emerged as a solid investment asset of 2020. With a Bull Run lasting right through the pandemic, the currency saw the historic halving in May 2020. However, rather than huge volatilities what we saw was a mature growth trajectory.
While many in the Bitcoin ecosystem speculate the asset to multiply in haste in the coming months, people familiar with the matter expect a much more stable and long term growth action. Bitcoin’s performance was so strong, that it handsomely outperformed gold in 2020.
What does the future hold for Bitcoin?
One major reason for Bitcoin’s success and popularity has undoubtedly been the Coronavirus pandemic. The pandemic and the subsequent lockdown made it possible for many people to start learning and educating themselves concerning the same.
Many people also started exploring bitcoin trading platforms in order to open up a second source of income. Start today by filling the form below
Their experience of the same has been positive to say the least. Many have also realized that the best way to maximize investments from Bitcoin is to hold on to their Bitcoins for as long as possible.
This has contributed to reducing the instability and volatility of the currency in a major way. It has also resulted in Bitcoin going truly mainstream in the USA, Canada, Germany, Australia, Japan and other developed nations.
The Final Word
Financial Analysts on Wall Street continue to suggest that a crypto heavy portfolio is not a good option to proceed in 2021. While some suggest that gold is also a good option, others suggest steering away from oil as an investment altogether. Which among these three do you think is likely to emerge as a winner in 2021? Let us know in the comments below.
