With the recent rise of Bitcoin and its achievement of great returns, especially for investors who entered last March, Bitcoin is seen as among the best investments in 2020, and its performance in violation of many traditional assets and banknotes, led by the dollar, made it an inflation-resistant investment asset.

According to analysts at German investment bank Deutsche Bank, bitcoin is becoming increasingly attractive as an alternative store.

stated Mr. Jim Reed, Managing Director and Head of Global Core Credit Strategy at Deutsche Bank:

There appears to be a growing demand for the gold-like bitcoin as a hedge asset, as gold is used to hedge against dollar risks, inflation and other things.

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Bitcoin has long been viewed by proponents as digital gold due to its limited supply and predictable use as a store of value unlike the banking effect.

Bitcoin has gained an estimated 144% return on investment this year, while gold is up only 22%.

In general, both origins seem to have benefited from the inflation-enhancing monetary and fiscal policies launched by central banks and governments around the world to contain the economic fallout caused by the coronavirus.

The cryptocurrency is up more than 25% this month alone despite hopes for a quick global economic recovery over potential coronavirus vaccines and an improvement in risk appetite in stock markets.

Gold has lived up to its reputation as a haven asset and is down 1% this month, as positive news about the discovery and efficacy of a vaccine makes investors abandon gold and take risks again in financial markets, negatively impacting gold’s performance.

According to Mr. Jim Reed:

The difference between gold and silver on the one hand, and bitcoin on the other, is one of the anomalies of this month.

Previously, the US companies “Pfizer” and “Moderna” announced encouraging results for experimental vaccines for the Corona virus earlier this month, which led to the movement of funds from gold and other haven assets to risky ones.

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He told Reade earlier this month that coronavirus vaccines equate to global fiscal stimulus.

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stated Christian Nolting, chief global investment officer at Deutsche Bank:

Inflation could rise moderately in 2021 and 2022, which bodes well for stocks and gold.

At the time of writing this article, Bitcoin is trading at $18,100, while gold is trading at $1,867 an ounce.

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Bitcoin’s performance is similar to gold with clear correlation points on the charts