See reason why African Investors Are Officially Dumping Gold for Bitcoin

With bitcoin trading, and cryptocurrency trading in general, growing globally, especially in African countries, there have been numerous concerns about the decline in gold trade as bitcoin trading is on the rise.

Gold is being dumped in favor of Bitcoin according to numerous analysts leading to Bitcoin stealing a large market share of gold, says Louis Schoeman of Forexsuggest.com.

With bond rates declining, gold tends to rise with a drop in bonds, gold has also decreased simultaneously, which is an extremely rare occurrence.

It can be greatly attributed to the fact that bitcoin trading has increased significantly. Gold prices have shown a steady trend, but declines have occurred more recently as the investment pool has moved more firmly into cryptocurrencies.

Looking back on the past year, and considering the unstable economic circumstances surrounding the emergence and spread of Covid-19, there have been numerous warnings of a global recession.

There have been many years in which the bull market has been dominant, but investors have become increasingly concerned about the possibility of such a recession to such an extent that they have begun to shift investment to a more stable safe haven.

During the pandemic, trade in cryptocurrency has increased exponentially on a global scale, and such trends can be seen on a large scale in various African countries as traders and investors have entered the Crypto market.

These moves, from investing in gold to bitcoin, have been designed to protect against gold-related stock volatility. Gold has always been considered a safe haven asset due to its value and the fact that it is undeterred by supply or demand.

Bitcoin, as a blockchain-based cryptocurrency, shares a number of gold properties and has even been called ‘digital gold’ in the past. This is because of a weak relationship with other assets.

Why are Africans turning to Bitcoin instead of investing in gold?

There is a limited amount of bitcoin, because there is gold, and bitcoin, like gold, is not issued by either the central bank or the federal government.

Bitcoin is a decentralized cryptocurrency that is generated digitally by the collective computing power attributed to miners who are both individuals and groups of people who work together to verify transactions.

With a significant increase in Bitcoin trading, African investors have moved their investments to Bitcoin in an attempt to curb market volatility in addition to securing investment in an asset that is gaining more foothold over gold at a time.

Final Thought

While both gold and bitcoin are highly valued and scarce resources, Bitcoin has been awarded the trend towards more investment in African investors.

More African investors are leaning toward the prospects that Bitcoin holds than gold has historically shown. Due to many economic factors surrounding the global pandemic, more investors have identified bitcoin security as a safe haven for investment.

Whether this trend is set to continue, to decline, or even to reverse when the world emerges after the pandemic, remains to be seen.

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