The Bitcoin price has continued its record-breaking rally today. It hit the $11,500 level, just the day after tipping the monumental $10,000 milestone. The current price at the moment of writing is $11.290. Yet, speculation is rampant- how much higher will it go? Bitcoin has risen in value so far this year. We see the largest gain of all asset classes, prompting skeptics to think it could be a classic speculative bubble.
Rising Demand & Bitcoin Price
The Bank of England deputy governor, Jon Cunliffe, talked about the Bitcoin price in his latest interview. He states that people have to understand that Bitcoin is not a currency in the accepted sense. No central bank stands behind it. And, we when prices are moving like that, investors need to do their homework.
So, could the rising demand be the demise of bitcoin? Should investors use Bitcoin as a store of value? Or, an alternative asset? Is it the perfect time to convert bitcoins to gold or silver and rebalance your portfolio after this massive run? Perhaps, the key word to watch out for the Bitcoin’s price rally is “currently”?
Now it would be a great time for precious metals come into play. Gold has an accurate history of stability for thousands of years. And, its prices will only increase over time. On top of this, the gold market is regulated. This gives investors some protections that don’t exist with Bitcoin. Gold has also proven itself to be of value even when governments attempt to restrict its usage or outlaw it entirely.
Sometimes it’s better to play it safe. Which is a lesson that might be valuable right now. Or perhaps one that needs to be learned quickly. Will the Bitcoin price rise again?
This article is third-party analysis. It does not constitute any financial advice, which can only be provided by a certified financial adviser.