2021-5-19 13:57 |
The cryptocurrency market has seen an impressive surge over the past year, as the market currently has more than a $2 trillion valuation. This milestone has brought it close to the current Gold valuation held as an investment.
However, the precious metal’s market is still significantly larger when the value of gold for other purposes is considered.
Crypto assets compete with gold as a store of valueIt has also given credence to the belief by crypto enthusiasts that cryptocurrency has the potential of matching gold as a long-term store of value.
According to Wall Street firm Bernstein, “cryptocurrencies can fit the bill” for investors who want to find return streams to hedge debasement risk.
The strong support from institutional players and companies in the mainstream has led to the wider adoption of cryptocurrencies. More investors are now seeing digital currencies as a reliable store of value for the long-term and as a way to diversify their portfolios.
According to data from Coin Metrics, Bitcoin’s market cap has now hit $800 billion, after trading $43,300 on Tuesday. The top cryptocurrency was even valued at close to $1 trillion when it hit its all-time high of $63,000 a few weeks ago.
Gold still four times larger than cryptocurrenciesBernstein didn’t fail to point out that both digital currencies and gold has other uses apart from being a store of value. Based on Beinstein’s calculations, gold is about four times the size of cryptocurrencies when gold jewelry in people’s possession is added to the precious metal’s market.
Cryptocurrencies also have their differences when it comes to usage. While Bitcoin (BTC/USD) is used mainly as a store of value, other crypto assets such as Ethereum have more functionality apart from being seen as an investment. Bernstein also echoed comments by large money managers and institutional investors who have noted the ease of trading Bitcoin, making it more attractive than gold as a hedge against inflation.
The post Is cryptocurrency going head-to-head with gold as a store of value? appeared first on Invezz.
Similar to Notcoin - Blum - Airdrops In 2024
Market.space (MASP) на Currencies.ru
|
