Pitcairn's role as a new gold and safe haven for investors remains worthy. A relationship between gold and digital currency prices emerged late last year as investors started to trade the currency for gold. Analysts expect the trend to continue, despite the recent drop in the price of the Pitcairn.
Precious metals are converted as a capital for protein
Thomson Reuters analysts in a 2017 gold survey released in January suggested a rise in digital currency prices in December and the transfer of large amounts of capital from precious metals. Investors in the retail sector have a shorter investment horizon at present, many of whom have been unable to resist the temptation to ride the digital currency wave, the report said.
"The development, a possible relationship between gold value and digital currency rates, is fairly recent, according to Fortune reports," said Christopher Loney, strategist at RBC Capital Markets. He said he saw a possible correlation between the value of gold and currency rates. While there had never been a relationship, Lonnie said the trend had emerged late in 2017 and continued until early 2018. He noted that with the price of the Betquin in the quadrants, investors could use gold to buy digital currencies
Loney stressed that the simple link is not enough to trigger the price of gold, and it is not enough to say that investors are currently studying Betcuin as an alternative solution to gold. Macroeconomic factors that have traditionally affected gold prices continue to dominate the playing field, such as the performance of the stock market. He also said that with the end of the year for the year it is expected that gold prices will be lower than they were, an average of $ 1,303 this year, mainly due to higher equity earnings.
The road is still long
Bitquin's currency, in addition to being volatile, is still relatively unknown relative to other investment assets. Gold, on the other hand, is well established with institutional investors and has a lot of liquidity. While the turnover in the currency of the Betquin just over $ 3 billion in daily trading recently, the volume of gold trading in 250 billion dollars a day, according to the World Gold Council. Loney said the gold bond with the protein could increase over time. The evolving relationship also means that the opposite can happen, as Pitcairn investors pay money for digital currencies in difficult times for gold as a less volatile asset.
In a report sent to bank customers in January, Goldman Sachs Bank analyst Sach Bandel wrote that the rapid increase in demand for Betquin was the result of growing dissatisfaction with current regulatory systems and banking infrastructure. In the long term, digital currencies will mature and evolve into the major asset class. Bandel said digital currencies such as Betquin would generate lower returns but would prove a high level of stability, such as gold and other safe haven assets.
Source: CCN