33.8 C
Saturday, May 25, 2024
HomeBitcoin NewsAnalysts: Gold Is the Answer to Fiscal Problems Instead of BTC

Analysts: Gold Is the Answer to Fiscal Problems Instead of BTC


Related stories

With the federal government printing new money every five minutes, many analysts and traders say that the threat of inflation is upon us, but strangely, many are not turning to bitcoin in these troubled times, but rather to gold. Several analysts believe that gold is the answer to many incoming economic troubles.

Analysts: Gold Is Stronger than BTC

Fund manager Crispin Odey, for example, recently commented:

Gold is the only escape from global monetizing. In the short term, the money will be made on the inflation bet.

Gold is intriguing in the sense that it is often considered a “safe haven” asset. In other words, Armageddon could happen, and the precious metal would not lose its value. While this shouldn’t be taken literally, mind you, the power of gold has not been seen in virtually any other asset.

Consider the recent coronavirus pandemic that struck markets without warning. At the time, stocks were dropping left and right, while bitcoin and other forms of crypto lost hundreds if not thousands of dollars from their values in a relatively short period. Gold, on the other hand, went from trading at around $1,700 per ounce to roughly $1,300 per ounce. This wasn’t much of a drop, and on top of that, not one that lasted long either.

Within weeks, the asset managed to regain all it had lost, so perhaps there is some truth to the “safe haven” legend behind gold.

Everyone’s convinced that the stimulus package designed to fight COVID-19 in the United States could result in serious financial problems. While nothing is set in stone yet, many analysts agree that simply printing mass amounts of money out of thin air is not the best way to handle an economic crisis, and believe that gold is the answer to hedging one’s wealth and fighting against fiscal catastrophes.

A new report suggests that people may have put as much as $14.5 billion into gold ETFs during the first part of 2020. This is considerably higher than the amount of money put into gold and other precious metals during the Great Recession of 2008. The fact is that bitcoin, while it has done well this year no doubt (at press time, it’s trading for over $9,600) the asset space is still too small by comparison, which may be leading to less trust.

Many Still See BTC in a Positive Light, However

However, Delphi Digital believes more people are turning to BTC than one might think. In a statement, the company explained:

The short answer is yes. We have seen a sizeable uptick in [bitcoin] interest among investment professionals and fund managers. Many just aren’t as outspoken because they’re still conducting their own due diligence to formulate a well-informed opinion.

The cryptocurrency has recently undergone its third halving, which has caused it to flirt with $10K for the umpteenth time this year.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.


Latest stories