Bitcoin could drop dramatically in the short term, replicating what happened during the 2008 gold boom, before experiencing a sudden rise again and hitting new high records. That’s what Dan McArdle, co-founder of the analysis company Messari and one of the best-known researchers in the cryptocurrency industry, claims.
Bitcoin replicating gold?
Adding his opinion to the current discussion about the usefulness of bitcoin over gold, Dan McArdle of Messari said that BTC could replicate the behaviour of the precious metal in the coming years.
In particular, as he himself wrote in his comments on social media on August 7th, BTC/USD could repeat the performance recorded by gold after the financial crisis of 2008.
“I would not be surprised if BTC performs like gold did 2008-2011. Initial spike on fears of crises, big fall as liquidity crises actually sets in, followed by [an] even bigger rise as real debt/sovereign/currency fears take hold”.
McArdle referred to comments on gold from Raoul Pal, a wealth manager who recently spoke of a favourable outlook for both bitcoin and gold on Stephan Livera’s podcast.
And this currency crisis of dollar strength is causing an enormous deflationary wave globally. The CRB is literally the second worst chart in the world, after the EU banks. And we are right on the fucking CLIFF OF DEATH. Right there. Today.
I think oil breaks lower, today. pic.twitter.com/YK5C0HapGG
— Raoul Pal (@RaoulGMI) August 7, 2019
For some time now, many investors looking for a hedge against inflation have been taking refuge in bitcoin and gold. In the last period, this is also due to the recent devaluation of the Chinese yuan.
The latest significant price increases for BTC could be tangible proof of this.
Other prominent figures remain against it, including Peter Schiff, who reiterated his view that gold is a much better investment than cryptocurrencies.
“The Chinese aren’t buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!”