Bitcoin and gold are clearly competing for investor attention. When it comes to saving, gold reigns supreme. Bitcoin remains a riskier but more rewarding digital newbie. Here’s what industry insiders have to say about these two asset classes.
Gold remains the industry standard for savings. However, the more versatile digital asset is gaining more traction in the gold market. Bitcoin has become popular over the past ten years. Investors are now considering owning bitcoins for the next ten years.
This is an extremely fast maturation: just ten years ago, Bitcoin would not even be mentioned in comparison to gold. Experts from both provided Business Insider with their feedback on why they will hold gold or bitcoin for the next ten years.
Bitcoin VS Gold
Maximalist explains that Bitcoin will continue to rise in value against the US dollar. Pompliano believes that Bitcoin’s market capitalization will overtake gold by 2030.
Pompliano further states, “I have no gold and a significant percentage of my net worth is invested in bitcoins.” Pavel Matveev, CEO of Wirex, acknowledges that bullish gains have attracted tremendous market attention.
Bohdan Prylepa CTO of Prof-it Blockchain Ltd and COO in Bitcoin Ultimatum said in an interview that “Bitcoin is built on a transparent layer with known supply. The coin’s digital nature and censorship-resistant arms have unique properties unlike gold. Accompanying the crypto rally which began in Q3 2020 was this stagnation of gold prices and a marked expansion of BTC’s.” – “this hinted at capital injection, a sign of confidence, and a possible reassessment of BTC as a replacement of gold as a go-to store of value.” – he added.
Matveev believes that gold and BTC are completely different, and that gold is just a defensive goal that is to conserve value. Bitcoin, by contrast, offers several use cases including ease of exchange. Uphold JP Thierot also believes digital asset use cases make them an attractive option. Tiero states that Bitcoin’s growth momentum could push it up over the next decade as the price continues to rise.
“Bitcoin is also limited, unlike gold. No increase in demand can change that. ” Daniel Ives of Wedbush Securities,we believe bitcoin will become a major asset class in the future.” Finally, Mike Venuto, who manages one of the ETF portfolios Amplify Transformational Data Sharing, adds a valuable moment. Venuto prefers to have both in their portfolio. He states that he would add both assets, stating:
“I would add gold as a diversifier. I would add bitcoin as a diversifier. Hedging is diversification. Bitcoin is a tool to achieve this. Bitcoin is a protection against losing money in favor of something stable. ” Obviously, maximalists on both sides think their respective asset classes are better.
But it is also clear that diversification in both directions is a viable path. Bitcoin certainly turns out to be more volatile than gold, which remains a stable method of holding in value. However, Bitcoin’s use cases make it a likely investment option for investors.