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Cryptocurrency and Silver

By Kenny Stevens – Cryptocurrency Speculator

Altcoins and Bitcoins are suddenly going up once again, defrosting from their long and brutal crypto winter as investors begin to more frequently buy and sell Bitcoin and Altcoins, detailed through Bitcoinist. Crypto is not the only one that is thawing out, alongside them are precious metals rallying to the fray. This correlation between the two asset classes shows remarkable similarities like scarcity of supply. However, this sudden ‘perfect storm’ that is causing the silver prices to reach the skies should not have investors carry the same expectations for a similar breakout in the Altcoins.

Recently, there has been an explosion in spot silver prices, at one point going from $20 a troy ounce to a high of $23. This has the finance world buzzing with just over an 18% rally, and they are curious as to what is causing this fantastic run in the precious metal markets. Gold has also been increasing as investors continue to utilise the asset as one of the safe havens to hedge against inflation. Due to their relatively low and limited supplies, the value of metals rises in monetary conditions such as the present.

It has also been noted that Central Banks have been printing a more significant number of Fiat money, which is resulting in the devaluing of the money via inflation globally. At the same time, silver and gold supplies remain finite, resulting in their value rising as the demand increases. The same conditions could be seen as responsible for the cause in the rise of Altcoins and Bitcoin in the crypto markets. The last two-years of performance for Bitcoin right now is neck to neck with that of gold.

Though analysts have compared the ‘perfect storm’ of silver to Bitcoin, the same events are not likely to happen with the crypto markets. This may not encourage users to buy Altcoins even though both have similarities. The rally of silver is due to unique that the crypto assets are just not able to replicate.

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