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Bitcoin Remains One Of The Best Performing Assets In 2020

· in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

In the first two months of this year, Bitcoin (BTC), the largest virtual currency in the market, became the best performing asset in the world. This is despite the current situation in the market in which Bitcoin fell from $10,500 to under $8,600 for a short time in the last few days. 

Cryptocurrencies Become Profitable Assets in 2020

Despite the volatility and the recent outbreak of Coronavirus, cryptocurrencies remain as one of the best profitable asset class in the market. While US treasuries and other bonds provided good and stable returns for traditional investors, virtual currencies grew by a median of 30% since the beginning of the year. 

Other assets such as Australian Equities, stock markets or commodities lost up to 20% in the current year. This shows that 2020 started very bad and affected by the fast-growing Coronavirus. Countries all over the world are being affected by the current virus that is spreading in Europe and other countries and regions. 

This situation has affected the profitability of stock markets and other financial tools. Nevertheless, Bitcoin was able to generate great returns for investors in the current year. Indeed, it was possible for the largest virtual currency to grow by around 20% in the first two months of this year. 

https://twitter.com/arielsbdar/status/1234219412200316931?s=20

It is worth taking into account that Bitcoin is going to experience a halving event as soon as in May. This is expected to push Bitcoin price even higher if the market remains bullish as in the first two months of the year. Indeed, Bitcoin will reduce the new issuance of BTC from 12.5 BTC to 6.25 BTC, which could push the price higher if demand for it substantially increases. 

While US Treasuries registered a 4% increase, Commodities fell by 12% throughout the current year. At the time of writing this article, Bitcoin is being traded around $8,800 and it has a market capitalization of $160.7 billion. 

Bitcoin and gold have been trading in tandem until the last week when Bitcoin started to move down following the outbreak of the Coronavirus in Italy. However, Bitcoin seems not to be correlated to any special macro asset. 

The main question is whether Bitcoin will behave like a safe haven asset in the coming years or if a massive financial crisis explodes. Many consider that Bitcoin remains a risk asset rather than a store of value. 

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