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Cryptocurrencies: are they the best assets of 2020?

Cryptocurrencies are growing more and more and attracting more investors every year. But are they the best asset of 2020?

cryptocurrency rise - Cryptocurrencies: are they the best assets of 2020?

Investors are increasingly attracted to world of cryptocurrency. This is why these are considered one of the best performing assets during 2020. The returns of digital currencies during the year exceeded that of commodities (even those of safe haven assets par excellence such as gold) , but also that of stocks and bonds.

The trend leads more and more investors to an interest in decentralized finance, which is why the DeFi and cryptocurrencies see a thriving market and present themselves as an asset that offers optimal performance. 

The rise of digital currencies in investing

During 2020 the index Bloomberg Galaxy Crypto dedicated to digital currencies in 2020 saw a jump over 65% compared to that of gold which instead advanced only 20%. Driving the positive trend of cryptocurrencies and the benchmark index for this year was Ethereum.

In fact, according to what was stated by Mike McGlone, the Bloomberg strategist: the increased interest and adoption of decentralized finance more and more internationally, has led to the rise of Ethereum, which now maintains a leadership status within the platform.

One of the main advantages of DeFi it is certainly the transfer of financial functions to digital registers which are called blockchain. This also makes it possible to lend and earn interest, without having to go to the bank or interface with financial intermediaries.

The popularity of DeFi is growing more and more and consequently leads to a greater use of the blockchain. So much so that many of the applications that belong to DeFi are run on the Ethereum blockchain. 

According to analysts, however, other cryptocurrencies, among which the Bitcoin, have become a reserve asset, given the reliable value, as was seen during the pandemic crisis due to Covid-19.

Digital currencies during the pandemic have seen optimal performance, making them a safe commodity like raw materials, as gold has been for decades.

Buying Cryptocurrencies? Exchange Binance Binance

Silvia Faenza

Graduated in Political Science and International Relations at the University of Salento, in the 2014. From 2015 he is in charge of content management for online companies and publishing agencies, mainly as a ghostwriter, copywriter and web editor.

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