Looking at the ongoing economic scenario globally, it is pretty evident that investing in any asset can be risky. The worst-case scenario that the world is looking at is a severe economic recession. To gain more information about the oil market, you should go to (oil-profits.com). As a result, investors will lose billions as traditional stocks and currencies nose dive. This type of situation was not expected at all for investors before. Thus, investing in this market has been considered a bit challenging task. This is why Bitcoin trading has seen a massive influx of dollars and cryptocurrencies.
The cryptocurrency markets have been showing signs of bullish behaviour since early 2018. This can be attributed to several factors, such as increased public awareness. According to experts, the crypto markets are one of the best places to invest, provided you have a decent amount of risk capital. During the Coronavirus pandemic, let us look at the performance of other assets such as oil and gold. If you want to know which asset is best for your portfolio during these challenging times, read till the end.
- Investing In Gold
The gold market hasn’t been much affected by the Coronavirus outbreak. It has been maintaining its value across the globe. According to financial experts, this is one of the best investment options during tough times. Several factors can contribute to gold’s performance during such times, such as:
- Growth rates do not matter in this scenario; what matters is having a conservative asset that can maintain its value and be purchased easily.
- Gold is one of those assets whose value cannot go down to zero dollar values and remain there for long. This means it is not just a safe option but has limited upside potential.
- Gold is being held by a lot of governments across the world as a store of value. This means people can use it for storing their money during hard times. It also ensures people have somewhere to store their wealth in troubled times.
- Investing In Oil
The oil market has had poor presentation over some pair of months. As a result, its value has gone down by eight per cent, according to financial experts and traders. Worldwide, oil companies are experiencing dismal results. They have gone down by vast amounts because they are held hostage by several factors.
- The world has been facing several natural calamities. As a result, oil demand has not been expected to rise shortly.
- Energy demand is constantly increasing due to technological advancements, which means that oil is not being demanded at the rate it was in the past.
- The world is moving towards cleaner energy options. But unfortunately, this is a sign that future oil demand will continue to decrease, which is a problem for oil companies.
- Investing In Bitcoin
Bitcoin has been one of the best-performing assets in the crypto market during 2019. It has shown consistent growth over the past few months and has increased by more than 400 per cent since January 2018. Looking at the current economic climate, it is evident that Bitcoin will rise further.
- Bitcoin is a haven for many investors who don’t want to lose their value or market cap in times of uncertainty. This is because Bitcoin has gone up in the past after some challenging economic times.
- Bitcoin’s value is expected to go up from here onwards. This can be attributed to the fact that it has been accepted as a store of value by millions of people around the world.
- Increased global regulation is expected to increase investors’ trust and confidence in Bitcoin. This will ensure that more people use this digital currency in future, and demand for it will rise.
Looking at the performance of other assets such as oil and gold, it is not hard to understand why Bitcoin has been on the rise for quite some time now. During tough economic times, investors will be looking for high-risk assets that can assure them a good return and decent returns in the long run. Bitcoin may be a better option than oil or gold moving forward.
