Commodity Trade Mantra

Posts Tagged ‘Bitcoin and Gold’

Think AGAIN! - Is Bitcoin a Better Store of Value than Gold?

The bitcoin story has grabbed the trading and investing world’s attention like nothing else, hence the huge rise in its price this year. The root cause of the recent price plunge is a long-running conflict over Bitcoin’s failure to fix its most obvious flaws. But if we get a period of market stress then it could be time for the gold bugs to step up a gear as no one knows how bitcoin will react to a market panic.

Cryptocurrencies will Never Replace Gold for a Number of Good Reasons

Would the gold price be higher today if massive amounts of money weren’t flowing into bitcoin? Both assets, after all, are sometimes favored as safe havens. They’re decentralized and accepted all over the world, 24 hours a day. Transactions are anonymous. Supply is limited. But I don’t think for a second that cryptocurrencies will ever replace gold, for a number of good reasons. Here’s why.

Gold Wins in 3 out of 4 Scenarios - None Bode Well for the Economy

If you think of gold, the only way gold loses is if normal business and private sector cycles come back. If that is the case, gold goes back 100 dollars per ounce. The other outcomes, deflation, stagflation, hyperinflation are good for gold. So gold wins in three out of four scenarios, but none of the three are particularly appealing. Here is why.

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