Bitcoin Wants Gold’s Crown in the Store of Value Asset Class: Analysts Debate Which is Best
The U.S-China trade war is already taking its toll on stocks on Wall Street. Investors have therefore started moving their money into Bitcoin and other currencies in anticipation of a worsening war that may shake the stock market. However, there are still disagreements concerning which of Bitcoin and gold is a better store of value for storing wealth now that the stock market is at risk
Two analysts, Jim Iuorio, a broker/trader and a CNBC contributor and Anthony Grisanti argue against and for Bitcoin respectively. Luorio said golf has broken a major resistance and may be on its way to the $1,360 range while Bitcoin which came very close to $10,000 has crashed to under $8,000 so gold is a better option.
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Grisanti, on the other hand, argued that Bitcoin is becoming more popular in terms of buying goods and services while gold is not. For instance, Bitcoin is now being accepted in several retail stores globally but gold cannot be used to buy things as small as a cup of coffee.
Meanwhile, even Chinese investors have started moving their funds to Bitcoin and other cryptocurrencies which are now considered as safe havens. According to analysts, this is likely to further pump the price of Bitcoin in the coming months if the war continues to worsen. This, in turn, will crash the Chinese Yuan against the U.S Dollar as the war continues to ravage the market.
However, prominent crypto bear Peter Boockvar said on CNBC that although Bitcoin is gaining from the trade war, he only watches it as an indicator but does not consider it an investment worth having. He also adds that Trump’s multi-front war will also give gold and the U.S Dollar enough momentum to compete with Bitcoin.
“I still think it’s in its infancy, and I only bring it up here because we saw a short move over the past month that I was thinking, well something is causing this,” he said. “I don’t recommend bitcoin in either direction because I don’t really care for it in terms of an asset, but I do care for it as a signaling mechanism that I think was a tipoff to this bounce in gold,”
He insists that he would rather own gold than buy Bitcoin.
The controversy over which of Bitcoin and gold is a better store of value has been on for some time now since Barry Silbert started the Dropgold campaign. The argument has been further aggravated by the developing trade war between the two largest economies of the world. According to Boocvar, the war is likely to get worse and as it does, it will become more apparent whether Bitcoin or gold is preferred as a safe haven for investors as the war worsens.