The last 24 days mark the longest period in which bitcoin prices have been less volatile than gold prices, going back to 2010, according to The Wall Street Journal. Some see this as a sign of investor perception of bitcoin as a safe store of value.
Not one for lack of volatility, bitcoin has witnessed wild price changes from the beginning. Bitcoin watcher Gil Luria, managing director at Wedbush Securities, who covers payments and e-commerce, stated that the cryptocurrency has taken on a role similar to gold as its usage has grown. Holding bitcoin, like gold, can appeal to investors who see both as an alternative when they lose faith in traditional asset classes.
Luria said it has a lot to do with the perception of value. Gold, he noted, has long been the only refuge for people concerned about the monetary system and the global economy.
What The Trend Means
Bitcoin’s volatility fell below gold’s for a short period in 2012. The more recent trend has more significance as the