Is there a lot of ‘catch-up potential’ in Bitcoin as an inflation hedge?

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‘Bitcoin vs Gold’ – which is a better investment option?

On a global scale, this is one of the most frequently asked questions by financial institutions and investors. While some like the “yellow metal,” others prefer Bitcoin or “digital gold.” This article, too, covers a similar story.

Ronald-Peter Stoeferle, the managing partner of investment management firm Incrementum AG put forward his stance in a recent interview. According to him, there was no competition between the two assets, especially from a portfolio perspective.

Despite being the new “kid on the block,” Bitcoin had attracted a lot of attention from the media. While Bitcoin is considered controversial or an asset with high volatility, Stoeferle opined, “you either love it or hate it, there’s nothing in between…I think what’s missing for gold at the moment is investors’ demand.”

In addition to this, Bitcoin will witness a price appreciation as the next phase of Bitcoin’s price growth is yet to begin. He stated,

“I think if Bitcoin will be around in five to ten years, prices will go to regions that we cannot imagine at the moment. Because, if you really see it as a hedge against inflation… and if you compare it to the size of the real estate market to the bond market…I think there’s a lot of catch-up potential.”

Having said that, Bitcoin still has a long way to go before it can catch up to its main competition. When the market capitalizations of the two digital assets are compared, “Gold is around $10 trillion, whereas Bitcoin is between $800 and $900 billion- so it’s still tiny compared to Gold (but) of course it’s catching up,” Stoeferle remarked.

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With the increase in institutional acceptance in the crypto sector, it will be interesting to see how BTC performs against Gold.

Bitcoin vs. gold is a frequently disputed topic. On the ‘What Bitcoin Did’ podcast, for example, a debate between Bitcoin strategist Greg Foss and gold bug Peter Schiff saw each side putting out alternative narratives of BTC being better than gold and vice versa.

Recently, Michael Saylor, CEO of MicroStrategy and a Bitcoin bull, enthused about Bitcoin in a tweet.

Other experts, on the other hand, remain steadfast in their anti-Bitcoin stance. As previously reported, Leo Kelly, CEO of Verde Capital Advisors, attacked Bitcoin when compared to gold.

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