Bitcoin (BTC) is not a hedge against all global crises, but will ultimately protect users from central banks, where the government prints money thrown in people's faces.

It was a consensus built among cryptocurrency backers on March 10, when traders waited for the next panic phase around the world – which brought the economy on Monday. The darkest since the 2008 financial crisis.

The world is facing an economic crisis

On Monday, the world currency and stock markets created a sell-off chaos when the war against the corona virus was not over and began the oil price war between Saudi Arabia and Russia.

In an unprecedented move in history, the entire US bond yield curve has fallen below 1% – signaling panic from traders about the global economic downturn.

Bitcoin 1-year chart vs 10-year US bond yield | Source: Skew

At the same time, Bitcoin has dropped about 15% overnight, the volatility that at the time of press has yet to recover.

Noting historical behavior, Hunter Horsely, CEO of BitWise, said that BTC has performed much better than before in the S&P 500 in particular.

S&P is -7.6% at present. Based on historical volatility, a move of -7.6% in S&P is equivalent to -41% in BTC, he wrote on Twitter.

However, in the past 24 hours BTC was only -5%. And only -0.5% since midnight today. That is not worrying.

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A fence against money printing

AngelList CEO Naval Ravikant meanwhile suggest investors shrink from recent price adjustments.

Currently, Bitcoin is not a common barrier against all black swans. However, in the long run, Bitcoin is a barrier against central banks that print money, which is unavoidable as a response to the virus.

Gold price plummeted

Each amount of SJC gold piece earlier this afternoon fell more than VND 400,000 compared to the end of yesterday when witnessing the world market's plunge.

At 13:30 this afternoon, SJC gold price was traded by DOJI Jewelry Group at VND 46.8 – 47.5 million, down VND 300,000 in the buying direction and VND 400,000 in the selling direction compared to the closing price yesterday. This price is compared to the peak of 48.2 million yesterday, which is lower than VND 700,000. Trading gap was maintained at a width of VND 700,000 per tael.

Compared to the peak set up yesterday 1,701 USD, every ounce of international gold currently lost more than 44 USD (equivalent to a reduction of 1.2 million). Accordingly, each amount of gold converted in the world currently costs 46.45 million dong per tael, lower than the domestic gold price by about one million dong per tael.

World gold price dropped sharply because investors took profit after gold reached a high of 1,700 USD / ounce. In addition, this precious metal is still affected by the stronger dollar. Earlier this afternoon, in Hanoi time, the greenback increased by 0.77 points to 95.78 points.

Thạch Sanh

According to AZCoin News

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