Bitcoin outperformed major currencies, benefiting just like gold

Since the beginning of 2020 the price of bitcoin has risen between 50% and 128% against global currencies, many analysts believe that this trend may continue.

Data from one analyst has compared Bitcoin's performance against major global currencies in 2020.

Data shows that BTC has grown from 50% to 128% against major world currencies.

bitcoin and currencies
Bitcoin's performance against different global currencies. Source: DriftwoodPalace
The analyst said:

“Update bitcoin prices in different currencies, on different timeframes. From the beginning of the year until now, prices have increased from 57% in the EU to close to or more than 100% in Argentina, Brazil, SA, Russia, Turkey .. (prices are based on official exchange rates of USD and may differ on reality)"

Bitcoin has significantly better performance than other currencies. For example, the Argentine peso recorded 53.9% in 2019, its highest level in more than 30 years.

Compared to the Brazilian lira and the Argentine peso, bitcoin rose 128.4% and 103.5%, respectively.

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Additionally, bitcoin also recorded increases of 56% to 69% against international reserve currencies such as the US dollar and the euro.

The Venezuelan bolivar has also plummeted against bitcoin, as Venezuela is in an uncontrollable hyperinflationary situation.

It is also because of the high level of inflation in Latin American economies that makes bitcoin a safe haven for the people.

There is also a regular boom in bitcoin p2p (peer-to-peer transactions) transactions.

Bitcoin has become a hedge against inflation
Since the beginning of 2020, prominent Wall Street investors, such as billionaire Paul Tudor-Jones have described Bitcoin as a potential hedge against inflation.

Even a $ 1.4 billion conglomerate like MicroStrategy has spent $ 250 million to buy bitcoin and see bitcoin as a potential investment asset.

Many investors now see bitcoin as a store of value during the economic downturn.

But it should also be noted that the Bitcoin price fell more than any other commodity or stock index in March 2020, when the price of bitcoin plummeted to $ 3,596 on BitMEX, corresponding to a 65% drop.

But it has now largely recovered in value and is hovering around $ 11,800 after hitting a monthly high of $ 12,400.

The rapid decline and increase also made bitcoin one of the most volatile assets.

“Bitcoin fell more sharply than any other commodity or stock index in March of this year. But after only a few months it quickly recovered and has been making a very impressive rise, from under $ 4,000 in March to over $ 12,000 in August, very little or no asset class has made it. so, ”said an analyst.

Bitcoin could benefit from the downturn of major economies
Strategists believe that bitcoin can continue to maintain its prosperity amid the country's declining economic climate and the COVID-19 pandemic.

As Meltem Demirors, chief strategy officer at CoinShares, said:

“Where is Bitcoin in the economic cycle? During times of economic uncertainty and a weak dollar, bitcoin is as likely to benefit as gold.