During times of economic uncertainty and recession, traditional assets such as gold have often been seen as safe havens for investors. However, a recent analysis by Bernstein analyst Gautam Chhugani suggests that Bitcoin (BTC) may now be a better investment option. Chhugani points out that Bitcoin has consistently outperformed gold over the past few years. Here are the details…
Bernstein analyst says ‘better’ for Bitcoin
Bitcoin has delivered nearly five times better returns than gold since 2018, making it an attractive option for investors looking to protect their wealth during turbulent economic times. While some skeptics argue that Bitcoin’s inflation rate is similar to that of gold, currently at 1.8%, Chhugani points out a critical distinction. “Every four years, Bitcoin’s inflation halves,” he says. So, it points to halving.
This unique feature will be demonstrated again in May 2024, when the total Bitcoin supply is scheduled to halve. Historical data has shown that such events lead to significant price increases for the cryptocurrency. This trend is also supported by prominent figures in the financial world, such as billionaire hedge fund manager Paul Tudor Jones, who has voiced his confidence in Bitcoin as a superior investment compared to traditional stocks.
BTC sees upside for its potential
Chhugani’s optimism for Bitcoin goes beyond its historical performance. Chhugani believes Bitcoin’s potential will only increase as concerns about an impending recession grow. The analyst cites the relatively early stage of institutional adoption as one of the reasons why Bitcoin is an attractive investment. Once the U.S. Securities and Exchange Commission approves the first U.S. Spot Bitcoin ETF, Chhugani predicts a surge in demand for the cryptocurrency. It is worth noting that despite Bitcoin’s remarkable performance and growing interest, its market capitalization is still significantly less than that of gold.
This shows that Bitcoin has room for further growth and could be an attractive investment opportunity for those looking to diversify their portfolios. The recent excitement surrounding Bitcoin briefly intensified when news broke about the iShares Spot Bitcoin ETF being approved by regulators. However, this enthusiasm was short-lived as the news was later confirmed to be fake. cryptokoin.com As we reported, it caused a sharp decline in the price of Bitcoin, falling to around $28,000. In summary, Gautam Chhugani’s analysis shows that Bitcoin is emerging as the best option for investors during recessions, given its historical performance, unique supply dynamics, and the promise of institutional adoption through a potential Spot Bitcoin ETF.
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