Bitcoin [BTC] dropped from 13,000 levels from yesterday to trade below $11,800. The bulls failed to break the price above new yearly highs near $14,000.
The price of Bitcoin [BTC] at 4: 45 hours UTC on 11th July 2019 is $11,430. It is trading 11.72% lower on a daily scale.
BTC/USD 1-Day Chart on Bitstamp (TradingView)
On the other hand, Gold rose by around 2% from $1395 to record a high of $1427. The rise can be attributed to Fed’s rate cut view in the US. Peter Schiff tweeted,
Today the Fed indicated that it wants more inflation and that it will cut rates to bring that about. Since inflation erodes the purchasing power of the dollar, investors sought a monetary alternative that acts as a store of value. That’s why they bought gold and not Bitcoin!
Gold/USD 1-Chart on Forex (TradingView)
Nevertheless, Bitcoin has gained about 187% since the beginning of this year. Moreover, in most instances, the rise was in correlation with the falling Chinese Yuan and rising global economic tension. However, Bitcoin’s volatility becomes an issue of concern because a safe haven asset is supposed to preserve value, while there is a lot of risks involved in Bitcoin investment.
Moreover, the viability, digital economic drive, and decentralization in the global economy are arguments that cannot be ignored.
Reportedly, Peter Schiff has agreed for another bout with a Bitcoin supporter to present the opposing arguments. In fact, not any supporter but one of the most popular names in Crypto-Twiter – Pomp. Anthony Pompliano, the founder of Morgan Creek Digital will contest Schiff to convince ‘gold bugs’ of Bitcoin’s potential.