The American monetary reserveone of the country’s largest distributors of gold, silver and platinum coins issued by the United States Governmentjust present a study who evaluates the long-term performance of bitcoin (BTC) and gold. Which is better? Let’s dive deeper into the study to find out.
The covid-19 pandemic He taught us different lessons about various aspects of life, but one of the most important was about saving and investing. During the pandemic, more and more people have turned to safe assets. Gold has always provided good returns on our investments, but with the rise of the cryptocurrency industry, digital assets have given even better returns than gold.
Before, the traditional movement was hedge equity volatility with gold. It was an extremely effective method in the past, but a new alternative has emerged that challenges the old-fashioned shelter method.
Is it true that “old is gold”?
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— US Money Reserve (@USMoneyReserve) August 1, 2022
According to American monetary reserve., gold has a long history dating back more than 5,000 years. Gold coins made their debut as a form of money around 550 BC. BC, before the introduction of paper money. Since then, the yellow metal has proven itself by providing guaranteed performance. The U.S. reserve currency backs,
“One of the main reasons for gold bullion is that it is a tangible asset that you retain control of regardless of what is happening in the global economy.“.
However, unlike gold, cryptocurrencies are not considered a safe haven by many analysts because the bitcoin value (BTC) and others digital tokens it does not reside in an established history of commercial use or an ingrained cultural tradition. The precious metals company added,
” VSAs such, the future of cryptocurrency is relatively uncertain. As the future of gold continues to shinethe”.
According to an article by Barron, the debacle between gold and bitcoin (BTC) It is an unequal game, since the limited history of cryptocurrency makes it difficult to clearly define its role in a portfolio. Since cryptocurrencies are still in their infancy, it is difficult to determine whether digital tokens act as a long-term safe haven or behave more like speculative assets. The article said,
“The recent woes in the cryptocurrency market are at odds with the dominant narrative of recent years, which preached that these digital assets would take the place of the [oro] as a refuge in turbulent times. By now it should be clear that it is quite the opposite.
What is the opinion of the experts on the old debate?
Will Rhind, founder of a large ETF company, GraniteParts, said Bitcoin (BTC) and other cryptocurrencies could divert some capital from gold, but it’s too early to tell if that’s because they’re successfully hedged against inflation. He explained,
“Why people are currently buying bitcoins and cryptocurrencies is highly speculative. This is a total risk situation. In my opinion, he is less defensive. The reason people are buying gold right now is much more defensive. It’s around the story of inflation. It’s about preserving capital or long-term purchasing power.”
#BitcoinsThe limited track record and volatility of can be summed up in one word: extreme. George Milling-Stanley argues for #gold more #crypto.
Read his take before you #dropgold: https://t.co/aVe4FLaxRP
— State Street SPDR ETFs (@StateStreetETFs) July 18, 2019
Experts believe that although Bitcoin (BTC) has recorded a 100x improvement over gold as a store of value, it is likely that continue to appreciate in US dollars in the coming years. George Milling-Stanley, Chief Gold Strategist at State Street SPDR ETFs, said gold’s historic promise to investors has always been two-fold. First, over the long term, gold can enhance returns and can also help reduce volatility. Express,
“While gold has a history of improving risk-adjusted returns over longer periods – the holy grail of any asset allocator – digital currencies carry more risk, increase volatility and subject returns to its swings. short-term, often drastic.”
As for the debate Bitcoin (BTC) against gold, the eminent critic of Bitcoin, Peter Schiffwrote,
“In December 2017 Bitcoin peaked at just under $20,000. Bitcoin is a “currency” dead for 4 and a half years, because its current price is about 2% lower than it was then. Instead, the price of gold has risen over 40% over the same period. »
#Bitcoins is not digital #gold, it’s digital fool’s gold. In fact, since the price of Bitcoin is negatively correlated to the price of gold, it is a digital anti-gold. I will discuss this LIVE with @RichardHeartWin. Be sure to secure your spot here: https://t.co/33I8XZEH4l
— Peter Schiff (@PeterSchiff) February 22, 2022
It’s a statement, Sylvia CarrascoCEO and Founder of Goldex Gold Exchange Platform, said that although Bitcoin (BTC) is a new form of investment that is certainly getting a lot of hype, gold has retained its value through the ages. Continued,
Gold has long been considered the preferred safe haven And while bitcoin is “the new kid on the block”, it’s arguably going to eat away at gold’s market share for a number of reasons. Both bitcoin and gold have significant advantages over fiat currencies, as neither can be diluted or debased.
Bitcoin can be an alternative to fiat currency
The U.S. Monetary Reserve has pointed out that gold is considered a traditional hedge against the stock market And, now more than ever in the current economic turmoil, gold should be considered part of a diversified portfolio.
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— Bitcoin IRA (@Bitcoin_IRA) January 5, 2022
However, in support of Bitcoin (BTC), Chris KlinCOO and co-founder of Bitcoin IRA, a company that allows individual investors to buy cryptocurrencies, clarified the potential for cryptocurrency to act as a defense against money printing by central banks. He reiterated,
“Bitcoin has a finite supply. The government has printed unprecedented amounts of money since 2008, and it’s starting to have an impact on the broader economy. This manipulation cannot be manufactured in the same way, as Bitcoin is limited to only 21 million coins, providing an alternative to the fiat money system.