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Gold and Bitcoin (BTC): Two assets with multiple advantages for sophisticated investors

Tue 27 Jun 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Invest

In the financial markets, gold and bitcoin are two distinct but highly valued asset classes. Gold benefits from long-standing trust, while bitcoin has managed to establish itself as an essential asset despite the fluctuations it undergoes. According to some experts, both assets have advantages that can be asserted for a long time to come.

A bitcoin coin and gold bars

Bitcoin and gold: two different assets with balanced prospects

Expert Dan Tapiero recently shared his tips for smart investing during a bear market. In a recent podcast, he shared some of his thoughts on bitcoin and gold.

The specialist’s analysis focused on the value of these assets on the financial market. Above all, it addresses the question of the economic influence that bitcoin and gold may have in the medium and long term.

As for gold, its importance is well established. For centuries, it has been the most reliable asset for many investors. A reliability that conceals a major disadvantage compared to stocks and bonds.

Tapiero explains that unlike stocks and bonds, gold is not inherently capable of generating profits in the form of interest, for example. Nevertheless, gold has always outperformed other asset classes due to its ability to preserve wealth.

The expert maintains that bitcoin does not. At least, not as things currently stand, even if some analysts see bitcoin as a remedy for inflation. Nevertheless, its potential to achieve this stature is certain, according to Dan Tapiero.

According to him, bitcoin is both a “monetary revolution” and a “societal revolution”. As a result, he is convinced that the queen of cryptos can grow significantly in the future. Even though it only represents a $1,000 billion market, compared with $12,000 billion for gold.

Despite the structural differences that set them apart, Dan Tapiero sees bitcoin and gold coexisting in the global financial system. Each asset pursues relatively specific goals. For a savvy investor, holding shares of these assets would be an interesting portfolio diversification strategy.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.