Gold versus Bitcoin has been a popular theme in the press and amongst a range of analysts. We find most articles to be shallow attempts to drum up a rivalry where none exists. The latest to gain attention was a January commentary by Goldman Sachs in which Bitcoin is touted as a store of value that may take significant market share from gold. Rather than cannibalizing each other, it is more likely that most of the money that flows into both gold and Bitcoin originates from other asset classes (stocks, bonds, currencies) or from savings and other cash hoards.
Bitcoin has yet to be tested in an economic downturn and bear market. Gold and gold stocks enjoyed outstanding performance during the recessions following the 2000 tech bust and the 2008 financial crisis. With the coming rate hiking cycle, the odds of an economic downturn increase and Bitcoin may have a golden opportunity to prove whether it is indeed a store of value that is just as good as gold.
MVIS Global Junior Gold Miners Index
28/02/2021-28/02/2022
Source: MV Index Solutions. All values are rebased to 1,000. Data as of 28 February 2022.
Get the latest news & insights from MarketVector
Get the newsletterRelated:
