Mykola Udianskyi compares bitcoin with oil and gold
Amidst the global collapse of oil prices and a slight increase in the price of gold, Bitcoin is showing steady growth. Mykola Udianskyi, CEO of the Bitcoin 2.0 fork (BTCU) draws attention to that fact.
The expert reminds that on April 20, for the first time in history, the value of May
futures for WTI oil fell to negative values. At the minimum, the price reached minus $40 per barrel.
The fall of all types of oil began in early March, after the failure of OPEC negotiations and the statements of Saudi Arabia on plans to increase fuel production and reduce its cost.
After a sharp drop in oil prices, the OPEC + countries were able to agree on a new reduction in oil production on April 12, however the oil prices failed to stabilise at a higher level.
The oil situation and the outbreak of coronavirus are causing uncertainty and concern among investors. They are looking for “safe havens” - assets that can maintain their value even in the event of serious economic turmoil around the world.
Usually they prefer traditional assets, such as gold. On April 5, its spot price exceeded the $1700 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. While the oil price falls and the price of gold shows a slight increase, BTC shows truly impressive results. Over the last week, the prime
cryptocurrency had grown from $7500 to $8900 and continues to rise.
That fact suggests that BTC is becoming a safety net asset.
“In this situation, bitcoin is head and shoulders above oil and gold and becomes a truly safe haven,” Udianskyi emphasises.
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.