Bitcoin’s crash is turning the investors towards gold yet again says Jan Van Eck, CEO of Van Eck Associates. However, Crypto industry experts have shared that gold is rather “physically vulnerable” and bitcoin is better at being gold than gold itself.
The Tide has been Turned
Bitcoin has crashed over 80 percent from its all-time high at $20,000 in December 2017. But it couldn’t deter the investors from buying this digital asset, until now, if this ETF strategist is to be believed.
Jan Van Eck, CEO of Van Eck Associates in an interview with CNBC’s “ETF Edge” said that Bitcoin investors are now moving to the traditional commodity that is gold.
“I do think that Bitcoin pulled a little bit of demand away from gold last year, in 2017. Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way.”
During the period Bitcoin rallied and made its all-time high in December 2017, gold surged 4 percent in the same period. According to another expert, Tim Seymour, founder, and Chief Investment officer at Seymour Asset Management, the move now made toward gold will be difficult to turn back to Bitcoin.
“Not only have we lost all liquidity on the underlying [commodity] but truly outside of the existential blockchain argument, it’s been very difficult to argue store of value which is really what we started hearing about,” said Seymour. “Gold is a store of value and there’s no disputing that.”
But Bitcoin is Better at Being Gold than Gold!
This year, according to VanEck whose firm created the most well known gold ETFs, the best way to play is through gold ETFs, “The shares have been acting tremendously well over the last two or three months … It’s starting to zig when the stock market zags. In the majority of the days in Q4 when the S&P was down, GDX was up. So that zigzag, that decoupling makes me really excited about gold shares as a diversifier.”
Well, VanEck’s firm in association with SolidX and Cboe is also the one that is proposing a Bitcoin ETF. Though the proposal has been revoked by Cboe for now, it is expected in the future the approval would be acquired.
Also Read: Experts Predict Gold to Surge over Fiscal Woes & USD Crisis, What about Digital Gold-Bitcoin?
Recently, Tyler Winklevoss who runs Gemini stated Bitcoin would rather surpass gold’s market cap.
“Our thesis around Bitcoin’s upside remains unchanged. We believe Bitcoin is better at being gold than gold. If we’re right, then over time the market cap of Bitcoin will surpass the ~$7 trillion market cap of gold.”
For some, the VanEck’s comment might be seen as not motivating but for others, they are actually hopeful as one Bitcoin enthusiast commented on Reddit,
“$7.8 trillion gold picking on $0.063 trillion bitcoin… The fact that bitcoin and gold are even compared this much is promising.”
Article source: https://coingape.com/bitcoin-no-more-craze-expert-says-investors-turning-gold/?utm_source=notification&utm_medium=push-notification&fbclid=IwAR0zmtxJgUOruKEtzW1BMGFny3IETNYglPIm7C61LPO8wgiIDnD9eghIvaI
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