Will 2021 really be a year of gold or will Bitcoin (BTC) manage to gain the upper hand? Some investors would decrease their investment in gold in favor of Bitcoin. The latter is still far behind gold in terms of market capitalization, but BTC continues to rise. Its market cap even surpassed that of Facebook after BTC crossed the $ 41,000 mark.
Bitcoin vampires gold
Some experts believe that Bitcoin feeds on a liquidity drain from gold.
The spot gold registered a decline of 4.6% during the week of December 28, 2020 to reach $ 1,857.
The tweet of January 8, 2021 from the founder of ByteTree Asset Management, Charles Morris, indicated that this decline could be attributed to a shift in investors from gold to Bitcoin.
A little earlier, the CNBC presenter, Jim To screw up, also indicated that the outflows of gold investment funds (ETFs) were redirected to the crypto markets.
The inflows and outflows of gold ETFs and Bitcoin Trust Fund of Grayscale seem to indicate the same thing. The trajectory of gold has hitherto evolved in parallel with that of Bitcoin.
Gold and Bitcoin: these anti-fiats
Gold and Bitcoin have long been presented as tools for hedging an asset portfolio against inflation and macroeconomic uncertainties.
During an interview with Bloomberg, one of the managers of Coinshares, Frank Spiteri, had indicated that the hypothesis that Bitcoin is a hedging instrument against inflation, continues to gain ground in a very unconventional monetary policy environment.
Some gold enthusiasts and detractors of Bitcoin as To fart Schiff, refuse to reconsider their position on the BTC.
Schiff believes that when investors understand the risk relating to inflation, they will understand that gold is the only asset to hedge against the devaluation of the fiats and in particular the dollar.
Bitcoin hit an ATH at the $ 42,000 level. BTC has since undergone a major correction which took it to the $ 30,000 level. Gold and BTC are waging a leadership war to gain the status of the best hedge against dollar bankruptcy. Peter Schiff has taken a radical position, other investors are more flexible. Gold or Bitcoin: as long as it protects against improper use of the printing presses!
Litecoin, welcome in the Silver Age