Cryptocurrencies like Bitcoin and altcoins are suddenly heating up once again, thawing out of their long extended crypto winter. Alongside crypto, precious metals are also rallying potentially due to the two asset classes sharing similarities, such as scarce supply. But a sudden “perfect storm” causing silver prices to surge sky-high shouldn’t have investors expecting a similar breakout in altcoins – the silver to Bitcoin as digital gold. XAGUSD Surges By Over 18% To $23 A Troy Ounce On Monetary Mismanagement In the last 48 hours, spot silver prices have exploded from under $20 a troy ounce to $23 at the high. The now over 18% rally has the finance world abuzz with what’s causing the incredible run in the precious metal. Gold has also been surging as investors continue to look to the asset as a safe haven and hedge against inflation. Precious metals, due to their scarce, limited supplies rise in value during monetary conditions like the present. Central banks across the globe are printing more and more fiat money, devaluing the overall money supply through inflation. At the same time, gold and silver supplies remain finite, prompting their valuations to rise along with demand. RELATED READING | GOLD CHART SHOWS WHY BITCOIN IS THE FASTEST HORSE IN RACE AGAINST INFLATION The same sort of conditions are also causing Bitcoin and altcoins in the crypto market to rise. Bitcoin’s two-year performance is currently neck and neck with gold, despite the rollercoaster ride BTC took to get there. Altcoins, which feature a price chart eerily similar to the silver market, has also recently been breaking out. These assets too have hard-capped supplies in many cases, or at least supplies that are limited in some way. But silver’s “perfect storm” surge likely won’t repeat in altcoins, despite the similarities. This is because there are some unique factors driving silver’s rally that crypto-assets can’t replicate. Silver XAGUSD to Total Altcoin Market Cap Comparison | Source: TradingView Green Initiatives Keep Silver Shining While Comparable Crypto Altcoins Get Left Behind Altcoins may be the crypto version of silver much like Bitcoin is to gold, but don’t expect altcoins to follow the recent pump in XAGUSD. The two price charts may be similar, but there are unique factors fueling the silver rally that altcoins can’t mimic. In addition to being used as a hedge against inflation, precious metals existing in a physical form gives them added benefits that crypto-assets can’t match. Being digital-only has its benefits too, but its the physical use cases of silver that are driving the price increase. RELATED READING | GOLD TO BECOME MORE LIKE BITCOIN IN COMING DECADE AS WORLD GOES DIGITAL Precious metals, like crypto, are both currency and commodity. Because supply and demand heavily impact the price of commodities, silver being central to a greener future is driving renewed demand. Gold is used in computer motherboards and circuitry, while silver is used in solar panels and other environmentally friendly efforts. Altcoins may be performing well due to the bear market ending, coinciding with money supply flooding the market, but without a physical form or use case, crypto won’t surge in the same way silver has. Featured image from Deposit Photos.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

201 +