Bitcoin (BTC), an alternative to gold?  The debate rages on

As the banking crisis shook the stablecoin market, several investors had suggested bitcoin (BTC) as an alternative. A more effective way than gold to fight against inflation and the loss of purchasing power. Some analysts believe that the flagship crypto lacks this capability despite trending quite favorably.

Bitcoin, an unreliable asset to store value?

In February, Gianluca Benigno, a FED researcher said: bitcoin is a store of value like gold”. Was he right? It’s hard not to give him the benefit of the doubt given recent bitcoin trends.

However, the investor Ray Dalio does not share this opinion at all. A position that he has been defending for several months and that the surge in bitcoin prices does not seem to affect. In a talk show delivered this Sunday, April 16, Dalio reaffirmed his opinion on the financial nature of bitcoin.

According to him, the latter is not as effective as gold to reserve value as many think. The reverse would have been true, he argues, were the flagship crypto not to engage in inconsistent and unexplained yoyos.

Ray Dalio’s analysis suggests that bitcoin’s fluctuations seem mostly tied to subjective elements. In particular, the enthusiasm shown by players in the Tech sector. A kind of bias that influences its price and pushes it up or down.

“Bitcoin is not an efficient currency. It’s got volatility that’s pretty much unrelated to anything… It’s going down because, say, people in tech like it, then there’s a tech problem, then they sell it to raise cash, And so on… “explained the investor.

Because of this, he adds, BTC would be “a very, very bad alternative to gold”. A situation that would also make the asset a potential candidate for increased regulation by governments.

Nothing is less certain for the moment. What we do know, however, is that the queen of cryptos has been on a positive streak since the start of the year. It is currently trading around $30,330 and may be in contention to touch the $50,000 mark.

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