The pandemic certainly did a number on the world economy. Almost if not every country in the world were suffering from recession. What's worse, in order to finance the fight against the pandemic and to ensure that their countries do not fall into an economic depression, government were forced to print more money. And as a result? Currencies losing value...
But amidst all of this downturn, another type of currency, cryptocurrency, is booming. After the pandemic hits, cryptocurrencies surge in value and reached all time high (ATH). Bitcoin in particular performed exceptionally well, reaching $40k+ in 2021, more than double compared to it's ATH in 2017. What's more astonishing was that it seemed to have no plan of stopping. As if an elite athlete injected with an adrenaline boost, Bitcoin keep breaking records after records.
Where will it stop? $50k? $60k? $100k?
From the look of things, no number is too high for the king of crypto.
Upper cap? Is that edible?
Unsurprisingly, this is a sentiment that most people share nowadays. Even one of the most die hard critics of Bitcoin, JPMorgan CEO Jamie Dimon is singing a different tune. Well, we can't really be too harsh on the man. He's just human after all. What's important is that he's man enough to admit his mistake and is now one of Bitcoin's greatest supporter.
Then there's the debate which asset is the best store of value: Bitcoin or gold?
My bet is obviously on Bitcoin. Of course gold is good too but I still prefer Bitcoin, and I believe that many people will agree with me on that. My reasoning is simple; one Bitcoin has more value than one bar of gold. What's more, one Bitcoin could potentially reach hundreds of thousands of dollars in a few years while gold would most likely stay at thousands, maybe tens of thousands if it's lucky.
Overall, Bitcoin could reach unimaginable heights in the future compared to gold. Therefore, investing on Bitcoin is obviously more profitable. Of course, no one would stop you if you decide to invest in both.
