CSO of Blockstream, Samson Mow, has sparked up a new rave amongst his followers after he told them Bitcoin and Gold are backed by the same factor which is Demand.
Before the emergence of Bitcoin, most investors that were in the financial market were trading in Gold. After Bitcoin made its grand entrance into the market scene, most investors in Gold have since moved to the Bitcoin space. Quoting him on his Twitter profile @Excellion, Samson mow said;
"#Bitcoin is backed by the same thing gold is. Demand".
This is not the first time the CSO would be advocating to place the coin in a high status after he asked his followers to buy Bitcoin.
Even with Mow's in-depth knowledge of the crypto space, his followers have however divided over the influencer's latest comments with some supporting him, others have been quick to let him know that Bitcoin suffers volatility while Gold doesn't. Replying to the CSOs recent comment, Noble bera (@DANSHILLZERIANN) said "I have yet to see somebody wear a bitcoin blockchain. Gold is actually used daily by a lot of companies" while JeySon (@JeySonBTC) supported him and said "Buy the dip! Stack more #Bitcoin and HODL, $20k is next stop $100k 2021"
Gold and Bitcoin price analysis
After a seemingly fall in price in previous weeks, Gold saw a quick movement after it went up to around the $1745 resistance figure. With the coronavirus pandemic largely contributing to its rapid fall, Gold has enjoyed rapid price rise since the lockdown in most countries was relaxed and most economies swung back to full action. If the new wave of the coronavirus hits and countries return to full lockdown, then the price of Gold would only make a massive decline.
While Gold has recorded a price increase, Bitcoin too witnessed small jumps in price to move towards the $10,00 mark but has seen its price declined a little to presently trading at $9,499. Despite the fact that the coronavirus was a limiting factor for Gold, it was a driving factor for Bitcoin. Take, for instance, a trader that wishes to get profits in the long term during the time of this pandemic lockdown would take to Bitcoin rather than Gold. This is to note in the case of American Nationals who used their $1,200 palliative checks to buy Bitcoin.
Demand drives the adoption of both bitcoin and Gold
According to the words of Samson Mow, demand drives the popularity and the increase in the adoption of Bitcoin and Gold. According to statistics, about 65% of the global population have heard about Bitcoin with a little more than that adopting. Bitcoin has seen more global adoption after analysts told people to hoard Bitcoin because it would be useful during these times. This notion has prompted most people to purchase the crypto which has moved its price in a high direction.Â
Gold has seen little adoption compared to Bitcoin because of its drop in price since the coronavirus lockdown began. Even though Gold is now enjoying an increase in price, a new wave of coronavirus pandemic might force the price to go under.
In a nutshell, Demand is the only factor that drives both assets, removing factors that would hinder demands would mean that there would be a considerable surge in the price of the assets. Bitcoin is still enjoying its time in the limelight after investors are actively backing it to go higher in the coming weeks.