What is the world looking for? Google has the answer. Google Trends gives us a lot of insight in consumer’s investment behavior. The tool shows us how often, when and where people are googling certain words or sentences. It also keeps track of interests in Bitcoin, gold, and silver. Being able to compare people’s search habits regarding different investment methods is important. Although it doesn’t show how many people actually invest, it can show us where interests lie.
That being said, what does Google Trends tell us regarding bitcoin’s worldwide popularity? What about its position in regards to the popularity of silver and gold as an investment? I made a comparison for the search ‘bitcoin price’ and compared it to ‘silver price’ and ‘gold price’ over the past 5 years. The results may surprise you …
Gold and silver are especially popular in India and Pakistan. Gold is traditionally used in wedding ceremonies and is considered a safe investment in times of uncertainty. All of this makes it a popular means to counter inflation.
Whilst ‘bitcoin price’ isn’t the most searched term worldwide, we can see that it is being searched in a wide variety of countries. In comparison, searches for gold and silver prices were less widespread.
Over the last 5 years, we can see that ‘bitcoin price’ has become a very popular search term, even overtaking ‘gold price’ and ‘silver price’ in several countries.
‘Bitcoin price’ is the more popular search term in the United States of America, Mexico, Spain, Ireland, Sweden, South-Africa, Switzerland and the Netherlands, overtaking searches for gold and silver prices over the past 5 years.
Global Pandemic Breaks Records
Gold, Silver and Bitcoin all took a fall when the global pandemic first really hit, around March 17th. Since then, however, all three investments have gained a lot of popularity and prices have steeply gone up as well.
There is a large distrust in the US dollar now that the US government is overspending during the battle of COVID-19.
Furthermore, the global pandemic has caused the central banks to buy huge amounts of extra treasuries to support the economy, causing the value of all national coins such as the US dollar, euros, pounds, yens and so on to decline.
All this is causing people to invest their money in safe haven assets, allowing those to approach or break their previous all-time records.
In H2/2011, the price of gold reached an all-time high with 1,900 dollars per ounce as a result of the US economy crisis. As of the end July 2020, that all-time record has been broken due to consequences of the global pandemic.
Although the price of silver is also rising quickly due to the pandemic, it is nowhere near the record of H2/2011. Silver is believed to have attained such a high price per ounce in 2011 because of the use in solar panels at that time, combined with a falling US economy.
When the US economy started to recover around 2012, gold and silver prices were dropping up until the end of 2019.
Bitcoin wasn’t widely accessible during the US economy crisis in 2011. It reached its all-time record price in 2017, caused by a single cryptocurrency trader according to a University of Texas study. In 2018, the Bitcoin price dropped significantly for a while, going back up in 2019. The price of Bitcoin has fluctuated a lot more than gold or silver prices. However, it has been rising since the end of March 2020, just like gold and silver.
Bitcoin is Dominating Globally
It is fair to say that Bitcoin sparks people’s interest as an investment and is currently dominating globally, according to Google Trends. Will Bitcoin continue to overtake countries and other more classic investments such as gold and silver? Will the global pandemic cause gold, silver and Bitcoin prices to rise even further? What do you think?