Cryptocurrency Impact On Gold and Silver Market II

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Gold and Silver are often traded in the financial market and are considered as precious metals having real value in the digital financial world and possessing physical asset too that's a physical representation of the asset itself and they are often used as a hedge against an inflationary economy.

Now often talking cryptocurrency it's not really like gold and has no physical identity in the form of paper or anything of such and is only available digitally but ofcourse rising on a global stage and sharing the spotlight with these asset which has been around for centuries now and whilst gold and silver has often been revered as a standard and the perfect hedge cryptocurrency emergency has no doubt impacted the gold and silver market, though having no physical identity it offers almost everything that gold and silver does.

I will like to talk on some of the impacts it has had on the gold and silver market that is cryptocurrency impacts on the gold and silver market.

I know ordinarily it seems like nothing could rival this precious metals well it depends on how you view things maybe you may feel cryptocurrency is another alternative though and not a competitor but there is no denying the impact of cryptocurrency on gold and silver market and some of these impacts are worth noting.

Impact of crypto on gold and silver

Well if we look back to the physical gold standard and compare it with cryptocurrency and what cryptocurrency offers then we would understand why a good percentage of the masses would prefer cryptocurrency over gold especially considering that cryptocurrency is built on hard technology that's blockchain technology this technology sets cryptocurrency a world apart and makes it to be more appealing to the masses as it offers users much accessibility that is not readily there with gold and silver.

Cryptocurrency offers a unique opportunity is both a currency and and asset a digital asset which is used as a store of value like gold and yet more also used digitally for transactions like your normal currency and easily traded which for young ones in this modern age the allure of cryptocurrency is more appealing that of gold and silver market which no doubt draws this one's to the cryptocurrency market more than the gold and silver market which is another considerable impact.

Well there is something that could really determine cryptocurrency impact on the gold and silver market something that could be a really deciding factor if these impact becomes great or it reduces considerably and that's regulations.

Gold and silver is considered as a legal standard and accepted by almost all government today and most often run to it to save a crumbling economy, no country I think have a problem with gold maybe only few if there is but with cryptocurrency the regulations around it is really inconsistent and constantly changing and those that also determine the level of impact it could have on the gold and silver market.

If let's say the cryptocurrency market where to be properly regulated and seen in a positive light by many governments of the world that will really turn the tide in cryptocurrency favours as it would draw even more investors into cryptocurrency and make many who shy away from cryptocurrency due to its poor regulations to venture into it and by so doing the investors in gold and silver may drop as a properly regulated cryptocurrency would seem an offer to good to pass and that will really impact gold and silver market in ways never seen before.

But if then the regulations on cryptocurrency where to develop in a way that's bad for cryptocurrency it would see it's impact drop on gold and silver market as investors may run for safe heaven which means regulatory framework a proper one is vital for cryptocurrency to maintain its position on the global market and impact the gold and silver market.

Well ordinarily gold often is seen as the only hedge against inflation but then when Bitcoin arises it seems well the narrative didn't really change but Bitcoin is now seen as another alternative often even refered as digital gold and some even fancy it more due to the fact is a scarce asset even more scarce than gold.

Yes there could ever only be 21 million Bitcoin ever in supply and that's fixed but gold can always be mined and that means Bitcoin is more scarce than gold and many knows that eventually there would be a rush as to who owns Bitcoin as there won't be any left anymore which makes many to fancy Bitcoin even as a more store of value than gold.

True bitcoin is rather very volatile now but with time as it comes to halve time will come when it's becomes also stable like other traditional asset and even the halving event won't impact it much, now because of this many tend to flock into Bitcoin more especially this young generation which is exactly the ally Bitcoin needs to reign supreme, that is especially why Bitcoin and cryptocurrency in generally has impacted the gold and silver market.

Sometimes too they are macro economic factors that determine which investors goes to whether to gold or Bitcoin as there are times when fiat and yes the dollar is usually the king, so many things guides or determine event in the financial market but no denying that Bitcoin is on the same spotlight as the biggest asset today and with it comes the rest of the cryptocurrency asset.

Conclusion

Indeed the impacts of cryptocurrency on gold is to a large extent is visibly felt and it is my believe that it could only grow from here on out, not saying cryptocurrency will completely put it out of just that in time Bitcoin will live to it's fullest potential as a digital gold and a perfect store of value.