Today we saw bitcoin hit an all time high of $23k while its traditional counterparts are suffering a decline in value. Historically, when someone desires financial stability, they naturally go for safe investment is, such as gold, stocks, real estate. But with the outbreak of the corona virus pandemic we have experienced a shift in global economy, countries are facing inflation. As a result many individuals are beginning to see Bitcoin as a safer investment than its counterparts. Countries are slowly adopting crypto as a means of payment. Will bitcoin eventually dominate the world economy and replace traditional currencies?
The time period is too short to make a conclusion that people actually look at cryptos as a safer investment because we can see people enters into the market at the time of bullish trend but most of them will cash out after a while which will make the prices to get dumped and then again the cycle will repeat. People still look at gold as safest because while also got a decent amount of rising but it is not comparable with bitcoin no matter what. Well, people completely lost their trust in fiat money so they are not looking for something to hold their value of assets.