Crypto Crashes While Gold Holds, But The Bulls Are Waiting

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Just when we thought that life was getting back to normal after Covid, a full-scale war breaks out on the doorstep of Europe.

The short-lived enthusiasm that came with the end of lockdown and vaccine mandates now seems like a distant memory. The markets have reacted in horror at yet another setback, with trillions of dollars being wiped off the global balance sheet.

For crypto lovers, this has been a particularly tough time. The long-standing refrain from Bitcoin maxis was that Bitcoin and its minions would mature into a digit-gold that rode out such a crisis, but that script has not been followed. As the traditional markets dive into the red, the crypto markets have started to mirror these very same movements. 

Gold Does Hold

In the midst of the meltdown gold continues to do what it has done for centuries. Standing firm as a solid hedge while everything else goes south, gold is still where the smart money goes in times of uncertainty.

It has fallen back after an early March spike past $2k per ounce, but it remains strong and solid with most other assets in free fall.

Holding strong as the markets crumble is already something to shout about, but Nitesh Shah, head of commodities and macroeconomic research at WisdomTree, believes that gold prices are still on a path back to $2,000 an ounce even as the Federal Reserve embarks on an aggressive tightening cycle. He added that his updated forecasting models point to gold pushing to $2,300 by the first quarter of 2023.

Mixing Solidity With Innovation

Asia Broadband, Inc. AABB built up its name on the back of decades working in all aspects of the production, supply, and sale of gold. The constant demand for gold meant things worked out well for the company in this sphere and they are now using their strong position to do something which may seem a little unwise given the current market conditions.

Instead of resting on their laurels after the big sale of one of their mining operations in Mexico, Asia Broadband decided to use this windfall to diversify and enter the crypto market.

In March 2021, Asia Broadband launched the AABB Gold Token which does something others in this sphere can’t come close to. Many projects have tried to merge crypto and gold, but none seem to have the know-how or resources to do it the way AABB did.

Its unique vertical integration of mine-to-token gold-backing means AABBG benefits from the upsides of both gold and cryptocurrency, delivering a built-in level of price stability without negating the potential for price appreciation from both markets.

To support and drive up the rate of adoption of AABBG, the company also released the AABB Wallet and a proprietary digital exchange called AABB Exchange.

These new additions to the company’s crypto offerings give AABBG token holders quick and easy access to liquidity and the ability to instantly exchange AABBG for other cryptocurrencies such as Bitcoin, Ethereum, or Solana.

But Isn’t Crypto On The Outs?

Many of the old guard might like to wish away crypto and the digital future, but that simply isn’t going to happen.

Crypto is here to stay. The current mirroring of the traditional markets won’t make hodlers happy, but that change shows a new level of maturity and it is with this maturity that institutional investors are now turning to Bitcoin and other major cryptos.

A recent tweet from Fidelity executive, stated that boring is good for crypto alongside a graph that charted the impact institutional money that is coming in is likely to have on Bitcoin in the short to mid-term.

On the “demand model” (mobile phone s-curve) used in his chart, BTC hits $387k by 2026. If it follows the “supply model'' (S2F), BTC will almost be touching an incredible $1 million per coin by 2026.

There is no guarantee that Mr. Timmer is correct about what the future holds, but even if he’s half-right, crypto is about to go on another mighty bull run in the not-too-distant future.

If this is the case, the people who were smart enough to merge the stability of gold with the innovation of Bitcoin will certainly be celebrating.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Photo by Jared Schwitzke on Unsplash