Blockchain technology companies are having a stellar performance amid the COVID-19 pandemic. According to Bloomberg, the stocks of these companies fared better than gold and Bitcoin.
Published earlier this year, the report revealed that Elwood Asset Management LLP’s Blockchain Global Equity Index, a basket of stocks of blockchain companies, showed a stellar 54% increase since 2019. This is twice the performance of gold, which recorded a 27% growth during the same period.
Meanwhile, top cryptocurrency Bitcoin still struggles to break past the $12,000 psychological resistance level. At the time of writing, Bitcoin is changing hands at $10,916.33, according to CoinGecko.
There are about 45 blockchain companies under the Elwood Blockchain Index. Top companies include Taiwan Semiconductor Manufacturing Co., a manufacturer of chips used for cryptocurrency mining rigs; Kakao, a South Korean messaging app that started its foray into blockchain technology two years ago; and Monex, a Japanese online brokerage company that purchased crypto exchange Coincheck in 2018.
This report comes as a surprise, especially that many investors are encouraged to invest in Bitcoin & gold during the economic downturn caused by the COVID-19 pandemic. Others even speculate that Bitcoin will have a $100,000 valuation per piece before 2024.
At the moment, Bitcoin seems to not perform according to the expectations of many investors and analysts. In fact, S&P 500 companies have outshined Bitcoin in the last months despite the current economic situation, considering that the US dollar has had a weak run in the early months of the coronavirus crisis.
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