Bitcoin Outshines Gold, as Indicated by This Significant Figure
Let's talk gold and Bitcoin, two popular assets being eyed for their potential as inflation hedges.
In the midst of US President Trump's trade policies pushing both stock and crypto markets to their limits, Bitcoin is taking a hit once more. The cryptocurrency is correcting as we speak, but long-term investors should stay alert - here's why digital gold has the potential to outshine the precious metal in the long run.
Despite Gold setting new records approaching $3,100 per ounce amid global uncertainties, what's interesting is that the Bitcoin-gold ratio support line, which has been around for over a decade, was recently shattered. This could indicate that traditional investors still feel safer with gold as a safe haven, compared to the young and volatile digital gold.
But don't let that fool you. In the long run, Bitcoin's inflation-resistance is far more robust than that of gold. Unlike Bitcoin, which has a hard-capped supply of 21 million coins, the supply of gold is still being mined. Each year, around 3,000 tons of gold are added to the world's supply, resulting in an inflation rate of about 1.6 percent for gold. In contrast, the inflation rate for Bitcoin is currently a mere 0.84 percent, as new Bitcoins entering the market during each halving event do not react to increased demand or rising prices. Bitcoin's supply remains constant, making it an attractivestore of value, especially during periods of high inflation.
In simpler terms, the old-school gold may have held the crown for a while, but digital gold, with its one-of-a-kind properties, is ready to make its move. So, buckle up, folks! It's going to be an interesting ride.
Check out the latest issue of BÖRSE ONLINE here for more insights on this topic, and don't forget to explore our article: "Finance professor reveals: With this strategy, I have been investing in stocks and ETFs for generations".
(Potential) Conflict of interest note The publisher Börsenmedien AG's board and majority shareholder, Mr. Bernd Förtsch, holds positions in Bitcoin.
In the dynamic world of finance, it's worth considering long-term investing strategies for both gold and Bitcoin, given their potential as inflation hedges. Surprisingly, theinflation-resistance of Bitcoin is more robust than that of gold, making it an attractive store of value, particularly during high inflation periods.
