Tell people how the economy has gone in a state of crisis, and they won’t even be surprised anymore. It’s all too normal, these days.
Back during the times, during economic fluctuations, people have only one thing to hang on to, and that is gold. People considered gold as a safe haven during the time, and it’s all thanks to its market value.
You might be thinking, gold is nothing but a piece of rock. Why on earth should it have any value? If you’re asking that question, then it means that you have no idea how value is attained.
Value goes way back to utility and demand. If something is useful, then it automatically gains value. If something has a high market demand, then the value for product goes higher.
Gold is not exactly useful but it is rare. This said, there is no surprise why people want it. Given the demand for gold, its value has gained a good place in the market.
But nowadays, the price of gold has gone down so badly. People thought that gold will be getting back to its heels when the price improved by 1% last August. However, the increase was not enough to significantly affect the status of gold. If we look at some traditional gold models, gold should have a higher market price than the one it has now, proving that the status of gold has gone astray.
Who Can We Blame For This Predicament?
There is one culprit for the demise of gold, and that one culprit is bitcoin. Let’s go back to economic crises. The world is affected by this economic matter. Some countries have even the lost its currency’s market value. That is how horrible the times has become.
People are desperate. They do not know who to turn to. With the demise of their own currency, how will they be able to cope up with their daily needs? If this was during the ancient times, then people would be shouting “gold” everywhere, and gold has lost its touch anyways. So, people turn to bitcoin.
Bitcoin had to make its way up to earn the attention it now has, but due to the economic crises that the world has, it has been given more attention as people realize how it can be a useful tool, as well as an effective resolve to economic matters.