Insights

Bitcoin Beats Gold With A Digital Hammer

An unprecedented amount of capital has flowed into the digi-sphere as the new generation of investors have clearly made a choice as to what is the safe haven they’re most comfortable with parking their capital. Bitcoin has even taken the name “Digital Gold” infuriating gold bugs who insist “Gold is GOLD!” What goldbugs must understand is that the market determines what is a store of value, and the market has clearly spoken. We agree however that having a store of capital in Gold is a wise idea. You can’t be a serious investor without understanding the importance of a diversified portfolio. So instead of Goldbugs like Peter Schiff demonizing bitcoin perhaps it is a wiser strategy to advise diversification in safe haven assets. 

Gold is a time tested and proven hedge against inflation. And inflation is heating up everyday it seems. Why not park some of that capital into the precious metal? The worst thing that could happen is your portfolio only barely outpaces inflation. While with bitcoin the possibility of governments preventing growth by taxing the asset into the ground is always in the realm of possibility. This is not to be ignorant of the historical record of governments seizing its citizens’ gold.  Perhaps a digital currency would be much harder to take that Gold, let’s hope we don’t ever get to that state of the State. 

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