Bitcoin And Gold Are Doing The Same Thing In Coronavirus Crisis: Pomp

The cryptocurrency news today feature Tyler Winklevoss who is the co-founder and CEO of the Gemini exchange and the prominent and early Bitcoin investor. He took it to Twitter and tried to defend Bitcoin despite the recent crash. The popular crypto personality Anthony Pompliano jumped in as well, saying that Bitcoin and gold are doing the same thing in the current crisis.

Winklevoss was first to note a couple of words about Bitcoin. He said that the cryptocurrency is still in its infancy and stated:

“If bitcoin isn’t gold 2.0, then what is it? The fact that it’s not acting how you might expect only underscores just how early it is.”

If bitcoin isn't gold 2.0, then what is it? The fact that it's not acting how you might expect only underscores just how early it is.

— Tyler Winklevoss (@tylerwinklevoss) March 14, 2020

Supporting his assertion, the co-founder and partner at Morgan Creek Digital, Anthony Pompliano, has attributed the recent crypto market meltdown to a broader liquidity crisis coursing through the global economy. As the famous ‘Pomp’ said:

“Bitcoin and gold are doing the same thing, just as you would expect them to in a liquidity crisis..they go down. Same thing happened to gold during liquidity crisis of 2008 too.”

Bitcoin and gold are doing the same thing, just as you would expect them to in a liquidity crisis..they go down.

Same thing happened to gold during liquidity crisis of 2008 too.

Here is context https://t.co/UJUB08smYN

— Pomp 🌪 (@APompliano) March 14, 2020

As in 2008, the metals markets have suffered a lot of losses as a result of the current liquidity crisis, with gold futures falling 4.25% and the silver futures crashing 8% in a single day on the Indian markets. Over the past week, gold is down 10% when compared to Bitcoin’s 50% downward turn and both of them are inter-related now.

In a recent episode of the Off the Chain podcast, Pomp was vocal in the Bitcoin news and pointed out that Bitcoin and gold are doing the same thing in response of the COVID-19 coronavirus pandemic, sparking a liquidity crisis.

“A liquidity crisis means that investors all rush to the exit doors at the same time, but there are so many more sellers than buyers that investors actually have a hard time offloading their assets for cash. Quite literally, investors begin aggressively lowering the price they are willing to accept for each asset in exchange for the cash which they are desperately seeking right now,” he noted.

Pomp also pointed out to the 30% crash in the price of gold during the 2008 global financial crisis and said:

“This [wasn’t] because gold is a bad store of value or that it had lost safe-haven status after 5,000 years. It [was] because gold has a liquid market and investors needed liquidity over anything else.”