Koinal.io offers an accessible process for purchasing Bitcoin and cryptocurrencies on major exchanges. This process does not rely on transferring physical property and operates at high efficiency.

Gold Market Squeeze

Gold is a traditional investment vehicle for those seeking to retain value during times of sudden change. The COVID-19 pandemic has caused periods of severe economic uncertainty. Just as investors began to turn to gold in the early part of 2020, the supply began to fail under strain: the increased demand and the disruptions caused by COVID-19 combined to create shortages of the metal.

In early 2020, the shortages showed disconnected pricing between spot and contract prices in New York versus London. Banks reacted by limiting trading. Gold shortages caused extreme steps like flying bars across the world to ease demand.

Gold markets and COVID-19

Gold markets can change and become inaccessible due to breakdowns in the supply system. The pandemic showed that mining, refining, transporting, and insuring gold can be difficult or impossible in severe conditions. The supply chain for gold and other precious metals can be fragile and subject to interruption.

Gold production is not as transparent as Bitcoin production. Its cost can vary and often remain undisclosed. Bitcoin hashing rates and fees are open to everyone. The hashing process is not efficient and electricity costs are high. They are transparent procedures and do not result in costly transaction fees.

Bitcoin Is Resilient

Bitcoin has traditionally been more volatile than gold or the stock market. The COVID -19 pandemic has not affected Bitcoin’s production, the hashing power available to support the system, or the steady march towards mining the limited supply of Bitcoin.

As a physical matter, Bitcoin has no need for processing and transportation from various parts of the world. Bitcoin mining is safe and secure, and the supply of available mining capacity does not depend on a complex global supply line.

Koinal can help you get started in Bitcoin and other cryptocurrencies. Whether your plan calls for a hedge against inflation or other financial goals, your journey can begin with a Koinal account. You can purchase large or small volumes and use your bank credit cards and debit cards to buy cryptocurrency. Open an account today!