According to a Bloomberg survey released this week, Bitcoin is quickly making its way among investors and will soon become the new digital gold. This is evident and clear in a chart published by the investor himself, which shows both assets and bitcoin clearly outperforming gold.
Over the years, Bitcoin has gained more and more popularity as investors have flocked to the digital asset. "Bitcoin in 2021 is moving from a speculative asset to a digital asset of global importance," said the Bloomberg report published in March 2021.
Quote 100k is no longer a chimera
Closing last month at $ 45, the cryptocurrency topped $ 54.000 in March at the time of this article's publication. To put this into perspective, gold which was around $ 1.859 per ounce at the beginning of last month has dropped to $ 1.700 per ounce.
Even the CEO of Microstrategy stepped in and satirically stating that Bitcoin was indeed taking over. "The Bitcoin Dragon is devouring the kingdom of gold," he tweeted.
Bloomberg's report which speculated that the cryptocurrency remained in the $ 40.000 to $ 60.000 threshold also claims that the digital currency would attract far more responsive buyers at the $ 40.000 figure. Furthermore, the increase in demand with a mix of limited supply over time is set to affect an increase in the value of the currency to $ 100.000 in 2021.
Recent developments have confirmed the likelihood of this prediction coming true as Tesla - the world's largest automaker by Market Cap (Tesla shares - ticker TSLQ) - showed a growing interest in the digital reserve.
But also others like MicroStrategy, confirming its support for the currency, Square mentioning that bitcoin sales contributed to last year's big revenue and Meitu, which bought Bitcoin worth $ 17,9 million for its treasury.
Gold is losing interest
The interests of these business giants are able to influence a rise in the price of cryptocurrency and facilitate its acceptability in global markets against gold, which is fast becoming a weak rival.
Inflation concerns over the past week affected most assets, including equities, to fall. However, bitcoin and other cryptocurrencies remained stable, strangely flat.
Last month, US Treasury Secretary Janet Yellen endorsed the idea of digital dollar research at a New York Times conference, contrary to the opinion of Steve Muchin, her predecessor.
Citigroup, along with other investment banking giants, noted that bitcoin is potentially taking over, saying the digital asset could be "everyone's currency of choice soon".
On the other hand, gold continues to be targeted due to rising interest rates in the US and its troubled prices in Indian markets.
Taking all this into account, it is not out of place to predict Bitcoin's potential dominance in global markets, overturning the despotism of the metal king.