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Bitcoin bull market will lower gold price: CCTV

A recent article in Chinese state media said the bitcoin bull market would push the price of gold and precious metals down.

A Bitcoin bull market could put long-term downward pressure on gold, according to a report on China Central Television (CCTV). The news, published by CCTV, was retweeted by red Li, founder of 8btc, and Qiao Wang, an entrepreneur from DeFi Alliance.

The state regime in China is fiercely opposed to Bitcoin and cryptocurrencies as it launches its own central bank digital currency (CBDC / DCEP).

“It’s really incredible if you think about it. Ten years ago, we started printing a digital notebook that is still less than 1 terabyte today and absorbs the life of an element in the periodic table that has existed since the birth of the universe.”

The broadcast by China Central Television quotes a JP Morgan statement claiming it could be an alternative to BTC.

Bitcoin outperforms gold in 2020
A recent digital wealth fund flows report from ETF provider CoinShares suggests investors are pulling out of the gold markets and into Bitcoin-based investments.

Compared to the performance of its assets, which are seen as two safe ports, it is clear that Bitcoin2in’s performance is much better than its bottom. Since the beginning of 2020 and during the period of the global Covid-19 outbreak, Goldprice.org according to him, the price of gold rose by 21% from its current level. Bitcoin, on the other hand, rose 165% over the same period.

Despite this glaring obvious difference in asset performances, controversial gold investors such as Peter Schiff are still not convinced.

“The latest Bitcoin marketing trick is that many private and public companies accumulate Bitcoin as a store of value instead of gold. Several companies that bought Bitcoin did not do so by selling their gold. Bitcoin is not the new gold.“

Bigger Fixes For Precious Metals
If gold were indeed a better asset, it would have made gains of more than 20% in a year when financial markets were destroyed and the storage of value assets increased rapidly.

Even Silver has managed to outperform gold in the last 12 months. It has gained about 34% since January. However, both precious metals are lower than their peak prices this year. Gold lost 11.3% and silver lost 18.6%. Bitcoin’s decline since its 2020 High is only 4% compared to current prices.

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