After Donald Trump’s shock win in the U.S. presidential election, gold and silver went up in value — as well as bitcoin. A recent piece from Business Insider informs us how this affected Bitcoin’s biggest wallet provider Blockchain in a very positive way. In fact, the company is having its best month ever.
Blockchain Wallet Has Best Month Ever
Blockchain is bitcoin’s biggest wallet provider, with over 8 million wallets in over 120 countries. Co-founder and CEO Peter Smith spoke to Business Insider about how the U.S. presidential election has increased activity in the platform.
Based in London, Blockchain employs roughly 25 people but still owns over 50% of the market. In the past, it has raised over $30 million from investors. According to Smith, this is the first month where “millions and millions of people” used their wallet, as they saw their biggest increase on election day. Blockchain will soon allow people to buy and sell bitcoin from within their wallets.
The new feature has been under development for roughly 8 months, and is thanks to a partnership with Danish bitcoin startup Coinify. With Blockchain’s position in the wallet market and recent surge of users, this feature is expected to increase activity on the platform – even more than the elections.
People invest in safe haven assets like gold or silver whenever the market is down. According to Smith, Bloomberg recently registered bitcoin as one of those assets. Essentially, people are turning to bitcoin in order to hedge against economic instability, as stocks crashed after Donald Trump was elected to become the 45th president of the United States of America.
Bitcoin and Gold Have a Lot in Common
For thousands of years, gold has been the safe haven people go to whenever the market is down. That may be about to change, as bitcoin is encroaching on gold’s turf, even though a lot of people don’t see it as a safe haven.
Both gold and bitcoin have no ties to any government, both have a very limited supply, and both have value. While gold’s value is determined by its properties, bitcoin’s value is determined by its features. The law of supply and demand has a huge influence on the price of bitcoin and gold.
Therefore, when the market crashed and demand surged, bitcoin’s price rose to nearly $740, even though it came back down soon after.
Is bitcoin really conquering gold’s turf? Do you use it as a safe haven? Let us know in the comments below.
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