Gold or Bitcoin? What is the safest asset in the age of inflation?
Investing in gold and Bitcoin in times of economic uncertainty.
In these times of economic uncertainty, investors are scrambling to find investment products that can potentially provide the best possible protection for their capital. The most common of these types of assets include both gold and Bitcoin (BTC). The king of cryptocurrencies is considered a viable option that provides security in investing. Mike McGlone, who is a senior commodity strategist at Bloomberg, recently suggested that gold is likely to continue outperforming Bitcoin for the foreseeable future over the next few months. This is because, most likely, the precious metal is striving to reach new heights.
Gold and Bitcoin have been experiencing increases recently
In an interview with Red Cloud TV on May 12, McGlone suggested that Bitcoin's ratio to gold suggests a continuous and uninterrupted advantage of gold over the oldest cryptocurrency. While gold may no longer be seen as a primary investment asset, there is no escaping the objective fact that it still has value as a risk-off asset.
Additionally, McGlone expressed his uncertainty about a potential gold price rally in the future against Bitcoin. With mounting inflationary pressures, both gold and Bitcoin have been hailed as safe haven assets by investors.
Both of the asset classes mentioned above have experienced significant gains in recent months. The situation on the gold and BTC charts is partly due to significant problems related to the ongoing banking crisis. According to McGlone, gold in a recession is likely to surpass Bitcoin in the near term, especially if it involves a significant fall in the stock market.
It is worth noting that recently gold ETFs have increased by as much as 10% in just the last two months, thus outperforming the benchmark SPX stock index, which gained only 3% during this period. Therefore, as reported by Finbold, there is still a large group of investors on the market who perceive the yellow metal as an extremely safe haven for investing their capital.