Gold or bitcoin?

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The following is the Gold or bitcoin? recommended by recordtrend.com. And this article belongs to the classification: Blockchain, Bitcoin.

Recently, with the fall of gold and the rise of bitcoin, who is the better safe haven asset? Will bitcoin replace gold? Is the sharp rise of bitcoin a repeat of the speculative market in 2017? These issues once again sparked heated discussions on Wall Street.

Will bitcoin replace gold?

Some investors believe that bitcoin is now replacing gold.

Jean Marc bonnefous, a former commodity hedge fund manager and now a digital currency investor, said: gold is indeed a safe asset for the world and the baby boomers of the past, and now it has been replaced by digital assets such as bitcoin. At present, many retail investors, speculative professionals and momentum investors have poured into bitcoin, but the traditional institutional investors have been in a wait-and-see state.

But that seems to be changing.

Paul Tudor Jones and Stan Druckenmiller recently joined Guggenheim, an investment company. Their joining seems to be changing this situation, and more and more institutional investors are starting to look at bitcoin.

Institutional investors take bitcoin seriously

It is worth noting that when bitcoin soared in 2017, wall street didn’t take this asset seriously. Now, bitcoin has hit a record high again, and more and more Wall Street investors begin to take this digital currency asset seriously.

I changed my mind, wrote Inigo Fraser Jenkins, a strategist at Sanford C. Bernstein, on Monday! Bitcoin will not replace gold, but there is room for both to rise, especially if the macro outlook for the future is higher inflation and higher debt levels.

At present, bitcoin has found a loyal supporter among the world’s largest asset management companies, proving its growing appeal on Wall Street.

Recently, the head of BlackRock, the world’s largest asset management company, made a rare positive assessment of bitcoin, believing that bitcoin may evolve into a global market asset.

In a conversation with mark Carney, former governor of the Bank of England on Tuesday, BlackRock chief executive Larry Fink said that although bitcoin did not attract his own attention, it did attract the attention of Wall Street.

Fink believes that bitcoin could evolve into a global market asset: these huge amounts of money are moving every day This is a fragile market. Can it evolve into a global market? Maybe.

Analysts at J.P. Morgan believe investors, including family funds, are selling their holdings of gold in favor of digital currencies. Since November 6, gold and silver investment funds have been reduced about 93 tons, worth about $5 billion. However, funds flowing into the gray bitcoin trust fund have doubled since the beginning of August.

Can bitcoin rise?

Simon Peters, an analyst at eToro, a multi asset investment platform, believes: Although the current rapid rise in bitcoin is indeed similar to that in 2017, there are some basic differences, which means that bitcoin may go further. First, it’s not just ordinary investors who buy bitcoin now. Larger institutional investors, such as pension funds and hedge funds, are investing in digital currencies, which many see as a hedge against inflation. Second, bitcoin continues to be in short supply and investors want to hold it for a long time. For these reasons, bitcoin is likely to continue to climb this year. If we maintain the current upward trend, bitcoin is expected to stand at $25000 by the end of the year.

According to James butterfill, an investment strategist at coin shares, the market value of bitcoin is currently only 3.1% of gold. He estimated that if the market value of bitcoin could reach 5% of gold, it would mean that the price of bitcoin would rise to $31300, which has not yet exceeded $20000.

Bitcoin is establishing itself as a reliable anti inflation asset, butterfill said. This is particularly attractive in an unprecedented period of loose monetary policy. For these reasons, investors will naturally compare it to gold.

Gold falls, bitcoin rises, is it true that the safe haven assets have rotated?

However, the reason for gold’s recent underperformance is not entirely due to investors’ shift to digital currencies. For example, the recent good news about health event vaccines has reduced the market demand for safe haven assets. In addition, the media believe that, with the relatively stable inflation expectations in the market, the fall in gold is only driven by the animal spirit of investors, while bitcoin has always been affected by speculative enthusiasm.

Now bitcoin is attracting more and more investors, but another factor that gold has fallen out of favor is the transparency of bitcoin trading.

Bitcoin transactions are all on the blockchain, and transaction records can be traced at any time. However, gold is different. Many young investors believe that the success of gold trading depends more on mutual trust between people, which is more similar to “black box trading”.

This article is transferred from “wall street news”, written by Cao Zexi. Read more: BofA Securities: bitcoin has become Google’s best investment in the past decade Bitcoin: bitcoin’s true value in China Credit: data shows that 4% of the top European economists hold 97% of bitcoin and nearly 75% of Europe’s top economists believe that bitcoin is not a systemic financial risk. Bank of Canada: 58% of Canadians hold bitcoin for investment purposes surveymonkey: 71% of bitcoin owners are male blockchain: in April 2018, 17 million bitcoin have been dug up. University of Sydney: research shows that nearly half of bitcoin Currency trading involves illegal activities. In January 2018, the market value of bitcoin evaporated by US $44 billion

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