In financial markets, gold and bitcoin are two different but popular asset classes. The first enjoys secular confidence. The second has managed to establish itself as an essential asset despite the fluctuations it undergoes. For some experts, one like the other has advantages to be asserted, for a long time to come.
Bitcoin and gold: two different assets with a balanced outlook
Expert Dan Tapiero recently shared his topos for investing smartly during the bear market. In a recent podcast, the latter shared some of his thoughts on bitcoin and gold.
The specialist’s analysis particularly concerned the value of these assets on the financial market. It mainly addresses the question of the economic influence that bitcoin and gold can have in the medium and long term.
On the subject of gold, its importance no longer needs to be demonstrated. For several centuries, it has remained the most reliable asset for many investors. A reliability that hides a big disadvantage compared to stocks and bonds.
Unlike these, Tapiero explains, gold is not inherently likely to generate profits in the form of interest, for example. However, gold has always eclipsed all other asset classes. This, because of its ability to protect heritage value.
This nature, the expert argues, bitcoin does not have. Well… not as things stand, although some analysts see bitcoin as a cure for inflation. Never mind, his potential to reach this stature is certain according to Dan Tapiero.
For him, bitcoin is both a “monetary revolution” and an “societal revolution”. Hence, he is confident that the queen of cryptos can grow significantly in the future. Although it is only a $1 trillion market compared to $12 trillion for gold.
Beyond the structural difference that sets them apart, Dan Tapiero sees bitcoin and gold coexisting in the global financial system. This, however, while each pursuing relatively specific goals. For an informed investor, having shares of these assets would be an interesting portfolio diversification policy.
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