The long-standing debate over the best way to store wealth is reignited as bitcoin and gold collide. Peter Brandt, a veteran financial trader, supports bitcoin, stating that he will dethrone gold as the long-term champion.
Brandt cites a chart showing the leading cryptocurrency's meteoric rise against gold over the past 12 years, suggesting a clear trend. However, Bloomberg ETF analyst Eric Balchunas presents a counterpoint. He highlights a recent influx of investor interest in gold, with trading volumes even surpassing the popular bitcoin ETF (IBIT).
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In a longer-term framework, bitcoin is king over gold and should remain on the throne for a long time. Think of btc as the ruler, gold as the baron, and silver as the court jester. twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$btc twitter.com/search?q=%24GC_F&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$GC_F twitter.com/search?q=%24SI_F&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$SI_F pic.twitter.com/Uz9k3aoMg4
—Peter Brandt (@PeterLBrandt) twitter.com/PeterLBrandt/status/1775246925564187005?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>April 2, 2024
bitcoin vs. Gold: the clash of points of view
This clash of outlooks reflects the current uncertainty surrounding the future of bitcoin. Proponents like Brandt emphasize its long-term growth potential, driven by its innovative nature and finite supply. The rise of the crypto asset coincides with a growing distrust in traditional financial systems, with some seeing it as a hedge against inflation and economic instability.
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Return of the golden montage, twitter.com/search?q=%24GLD&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$GLD seeing volume that twitter.com/search?q=%24IBIT&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$IR, probably because gold has had a good run lately while btc struggles (although btc still outperforms gold 3x since spot launch). Possible early sign of twitter.com/search?q=%24IBIT&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$GO exhaustion = could see an exit day soon to break his absurd 54-day entry streak. pic.twitter.com/0XMd39gJSM
– Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1775268022506381683?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>April 2, 2024
However, bitcoin's detractors point to its volatility as a major drawback. The recent price correction, which saw bitcoin losing significant value in a short period, exemplifies this risk. Additionally, bitcoin's regulatory landscape remains murky, with some governments wary of its decentralized nature. This uncertainty may deter institutional investors seeking stability.
Gold, on the other hand, has a long and illustrious history as a store of value. Its tangible nature and limited supply have made it a safe haven in times of economic upheaval. Recent geopolitical tensions have driven investors towards gold, seeking its traditional stability. Furthermore, gold's established role in the global financial system makes it a familiar and reliable asset class.
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BTCUSD trading at $66,258 on the weekly chart: TradingView.com
bitcoin or gold?
The recent increase in gold trading volume could be a temporary problem, as Balchunas suggests. Investors may be seeking refuge in gold following the decline in the price of bitcoin. However, it could also signal a more lasting change in market sentiment. The long-term viability of bitcoin ETFs like IBIT also remains to be seen. If these funds experience outflows, it could further dampen investor enthusiasm for bitcoin.
Ultimately, the battle between bitcoin and gold is a complex one, with strong arguments on both sides. Investors should weigh their risk tolerance and investment objectives when deciding where to allocate their assets.
Those looking for high growth potential with the ability to disrupt traditional finance might prefer bitcoin. However, they must be comfortable with significant price swings and a rapidly evolving regulatory landscape. Conversely, those who prioritize stability and a proven track record may find solace in gold.
The future remains unwritten. Whether bitcoin emerges as the undisputed king or gold retains its crown, the battle for financial supremacy promises to be fascinating to watch.
Featured image of Kinesis Money, TradingView chart
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