Could the coronavirus be helping to drive the current price rally in Bitcoin? The CEO of InvestorsHub.com certainly thinks so.
Clem Chambers makes the case that the virus’s outbreak has made safe haven assets more desirable. For him, Bitcoin trumps gold thanks to its portability and convertibility.
Is Virus Behind BTC’s 2020 Gains?
The notion of Bitcoin as a safe haven asset is an increasingly popular one. However, a more established use case for the crypto asset is certainly speculation.
This makes it difficult to determine the exact cause of sudden increases in buying pressure during periods of global uncertainly. As NewsBTC has reported previously, there are plenty that believe it to be speculation on the existence of safe haven investors driving Bitcoin rallies, not capital protection itself.
It’s undeniable that the Bitcoin price has gone up since the outbreak of the coronavirus late last year. However, there are a myriad of factors that could be behind the recent gains, including the upcoming Bitcoin halving.
One crypto industry observer of the opinion that Bitcoin is indeed serving as a safe haven is Clem Chambers. He believes that the coronavirus outbreak is making the digital currency more appealing than ever. Speaking to Kitco News the CEO of InvestorsHub.com said that a lot of the BTC gains since the start of the year are down virus.
The coronavirus has proven that bitcoin, not gold, is the flight asset of choice, says Clem Chambers of https://t.co/zudpjqALxQhttps://t.co/[email protected] @ClemChambers #gold #bitcoin #coronavirus #KitcoNews
— Kitco NEWS (@KitcoNewsNOW) February 14, 2020
Bitcoin More Immediate Safe Haven than Gold?
Chambers makes the case that the outbreak is causing sudden movement of people. Bitcoin, being infinitely more portable and convertible than gold, is far easier to travel with.
The cryptocurrency is also much quicker for the average person to take a position in or exit from one. In a sudden crisis, Chambers reasons this accessibility makes it preferable to gold and this preference is reflected in the market.
Calling the digital currency the “flight asset of choice”, the CEO reasons:
“You can’t take gold through the airport but you can take as much Bitcoin as you can carry in a smart stick.”
Of course, Chambers isn’t the first to highlight the advantages Bitcoin has over gold. Both scarce, prohibitively expensive to create assets, the cryptocurrency trumps the yellow metal by being non-physical. This makes transportation and storage of high value sums much simpler.
Later in the interview, Chambers states that the May halving event, reported extensively on by NewsBTC, has created the bullish momentum we have seen in the market since the beginning of the year. However, he adds that the price would likely be significantly lower were it not for coronavirus-related safe haven investments.
After confirming he holds Bitcoin and a few other cryptocurrencies, Chambers commented the following on his own gold allocation:
“I like gold, but Bitcoin is 5x gold, so I don’t need any gold.”
Related Reading: Bitcoin Be Mine: Celebrate Valentine’s Day the Crypto Way
Featured Image from Shutterstock.