Is Bitcoin still the digital gold?
Bitcoin $BTC has been touted as the next hedge or "digital gold". Traditionally, gold has been the "go-to" asset that holds value over long periods and is used to hedge against market downturns . Thus, one of the key qualities of a hedge is that of value preservation . During the market's downturn, a hedge will need to be able to retain or increase its value against market correction or recession. Extract from investing.com: Gold historically performs well during market corrections because it maintains its value; its price holds somewhat steady, then tends to rise as investors move from stocks to gold if a recession is threatening. This makes it useful as a hedge—an investment that moves opposite another—against market corrections or recessions. Comparison of BTC, gold and S&P500 index To establish if BTC is a good hedge as "digital gold", it needs to display similar performance and trends like that of gold. Let us look into the following ch...