Why in 2020 Gold and Cryptocurrency Have New Significance in Watches

Bloomberg Intelligence analysts have noted a fundamental shift in the perception of traditional and digital assets. Over the past two years, it has become increasingly clear that the role of gold and cryptocurrencies extends far beyond speculation. These assets reflect responses to deep structural problems in the global economy that cannot be ignored.

Money Supply Doubles: Context for Asset Revaluation

In the last decade, the global money supply has grown to $22 trillion — doubling compared to previous periods. This expansion of the money supply inevitably leads to monetary devaluation, which directly impacts the purchasing power of traditional currencies. In other words, accumulated savings lose their real value, and classic investment tools become less reliable. In this context, seeking alternative assets is no longer a whim of traders but a rational necessity.

Cryptocurrency as a Hedge Against Censorship and Control

A second critical factor is the increasing risk of financial censorship, especially evident in developing countries and regions with unstable political situations. Traditional financial systems remain vulnerable to government control, blockades, and sanctions. Cryptocurrency offers a solution: a decentralized network that provides personal control over funds without intermediaries. For millions of people in politically risky countries, this is not an exotic option but a matter of financial security.

Why the Value of These Assets Is Growing in the Current Era

Gold continues to serve as a classic hedge against inflation, and its poor performance in 2023–2024 merely reflects market volatility rather than a loss of significance. Cryptocurrencies, in turn, offer greater liquidity and technological innovation. Together, these assets form a new portfolio approach for investors who understand the risks of modern monetary policy. In 2020, the importance of these instruments is defined less by their historical returns and more by their role in protecting wealth amid systemic economic transformations.