Investors’ debate on Bitcoin and gold continues. As the American economy grapples with labor and supply shortages, the country’s central bank said “the risks of high inflation have increased”. And once again, the issue of cryptocurrencies like Bitcoin, which offers investors protection against rising inflation, has been brought up for discussion. Detail cryptocoin.com‘in.
Gold or Bitcoin?
Speaking at a recent Bloomberg event, Starwood Capital Group Chairman Barry Sternlicht featured cryptocurrencies as a smart hedge for investors in a world that only “prints” money. He also expressed similar concerns to the US Fed about the inflationary pressure on commodities. The investor, who manages the company with assets in excess of $100 billion, also revealed that around 2-3% of his net worth is invested in digital assets that include top-tier Bitcoin and Ethereum. The investor continued: “If it goes to zero, it won’t hurt me.” The billionaire detailed his discussions on the crypto market. Investor says:
The reason I have BTC is because the US government and every government in the Western hemisphere is now and constantly printing money. And it’s a limited amount and can be traded globally and in Nigeria or… Bolivia or anywhere people can have fiat currencies, you can switch to something the world accepts as a substitute for gold.
However, not everyone seems to agree on preferring Bitcoin to historical and eternal gold. Speaking to the Economic Times recently, Mark Mobius, founder of Mobius Capital Partners, stated that cryptocurrencies are more of a religion than an asset, as they are only valued on the basis of “speculation” and “belief”. The trader said: “Bitcoin or cryptocurrencies are in the religion class. It is a belief that they will rise if others believe as you do, otherwise it is not an investment. It is not something that makes money, pays dividends, produces something.”
Is BTC reasonable for hedge?
According to Mobius, gold is “not just a currency, it can also be used for industrial purposes.” Gold is considered a superior conductor to copper or other metals and is therefore preferred by electronics manufacturers, but its high price deters its use. The analyst said: “So I don’t think cryptocurrencies are in the category of viable investments. It’s speculation you can play with, have fun with, but don’t think of it as an investment.” Long-time Bitcoin critic Peter Schiff also tweeted earlier today assessing the cryptocurrency’s capacity to hedge inflation.
Similar to the stock market, the cryptocurrency market is also trading in the red today, with all major tokens including Bitcoin losing 15-20% of their valuation in the past day.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.