Bitcoin is a riskier version of gold and bonds, believes Mike McGlone

Cryptocurrency analyst compares the oldest cryptocurrency to other assets.

Mike McGlone, in one of his recent interviews, discussed the potential of Bitcoin (BTC) as a hedge against problems in the banking sector. He compared the oldest cryptocurrency to gold and US Treasuries, saying that BTC is becoming more and more like them, but is a higher-risk version of them. The American believes that people are well aware of the need to have a certain amount of Bitcoin in their investment portfolio, especially if they are looking for an escape from risky assets such as the stock market.

Bitcoin is riskier gold

According to McGlone, “in terms of potential hedging against problems coming from the banking sector, Bitcoin is similarly useful to gold and bonds, but with a certain amount of greater risk.”

The analyst in question believes that people are fully aware that they probably need to hold such an asset in their portfolios, especially if they are serious about escaping the risks associated with the stock market.

In his opinion, Bitcoin is currently still in the early stages of development and constitutes only a small part of global wallets. However, he believes that BTC has the potential to be a game changer in the future.

Concerning the current financial crisis, McGlone said people are realizing that their money does not need to be secured in a fractional reserve banking system at all, and that these funds may be safer in a stable cryptocurrency or a digital dollar that is fully secured.

During the interview, McGlone admitted that the current administration of President Biden is not enthusiastic about Bitcoin, but believes that it will be difficult to stop this revolutionary technology if interest rates rise again. The American sees a major recession on the horizon and is confident that Bitcoin will continue to outperform other virtual assets if his core thesis of a major global economic reset comes true.

– Bitcoin starts another bull rally, but it is largely dependent on the outflow of funds from the stock market. I think the longer BTC stays above 25,000, and the more the S&P 500 pushes below 4,000, the more the oldest cryptocurrency will start to push upwards, he added.

Overall, McGlone believes that BTC is by far the most future-proof and strongest among all virtual assets, especially in the current situation where everyone is facing a serious global economic crisis.