The comparison between Bitcoin and Gold is not only within the crypto scene is omnipresent. BTC is referred to as the digital Gold, and often even better than the Gold, because the precious metal surpasses it in many ways (portability, divisibility). On the other hand, Bitcoin is also a competitor of the Gold, since many investors, investors and hedge funds prefer to be in front of the popular precious metal digital currency. Compared to Bitcoin, Gold has a much longer history and enjoys, therefore, a General trust as the still-young digital Asset BTC.Especially in times of corona crisis and the related consequences, such as the money supply increase and the risk of (rapidly) rising Inflation, it attracts more and more investors into Gold and Bitcoin. What paradigm shift could now be facing and what impact this might have on BTC, a letter from the Investor Crispin Odey only imagine.
Gold and Bitcoin: High demand in times of crisis
Just in the last few weeks, the positive news increased all around the crypto-currency Bitcoin. After the BTC was able to recover not only from the course a technical point of view significantly from its year’s low, managed the digital currency is equally clear from his year in the beginning of the course to withdraw. For investors and investors in the digital gold has shown once again that Bitcoin is an excellent Hedge in times of crisis.Parallel to this, news came that large hedge funds spent more and more time on the subject of BTC and Bitcoin as part of their portfolio strategy. In addition to BTC, many of the billion-dollar hedge funds increased their positions in the precious metal Gold.Crispin Odey, the CEO of the London-based asset management company Odey Asset Management, wrote in a recent letter to his investors about a paradigm shift.4 reasons why Bitcoin must have in each Portfolio are: Free from any ideology or emotions we show you in this article, 4 reasons why Bitcoin must in every Portfolio. Correlation, return-to-risk ratio, scarcity and Adoption are the four major keywords. We let the facts speak! Of the 4 reasons.
Gold prohibition in the US? – Effects of Inflation
In this letter, the hedge Fund Manager said that it is quite possible that the Central banks (in particular the American Federal Reserve), to prohibit the private possession of Gold, or as illegal could declare. This would be an opportunity to bring more Gold into the hands of the state and to provide this in order to be an effective agent against a androhende Inflation.With an increased amount of gold in stock, our Fiat would be currencies, all of more covered than you are currently, and this is made in the quantity of money increase more than so far, so Odey. Who thinks now that it was all just a fairy tale, and States would never resort to such a measure, think only of the great recession in the 30s of the last century. So Odey said:
The history is full of examples in which Governments resorted to such means in order to justify the money printing.
As an example, the Manager called the just bought led to the Situation in the ‘ 30s when the American government established the “forced purchase” of Gold and the US citizens Gold. Here, too, the goal is to stabilize the value of the US dollar again.
Bitcoin is not confiscated izierbar: A benefit for BTC?
In the further course of the letter, Odey writes that he did not expect increased Inflation in the range of 5 to 15%. In view of the specified inflation target of around 2%, this would be a worrying value. Such an increase resulted in, of course, from an economic point of view, to a spiral, which required a long-term perspective – always more and more money.In view of all the just described scenarios Odey comes to the conclusion that Gold and Bitcoin are the two winners of the recent crisis and financial policy. In contrast to Gold Bitcoin, however, brings the enormous advantage that it preserves is not just the standard. So BTC has with regard to the determination of the owners not only have the advantage of pseudo-anonymity, but also, in particular, the advantage of the fixed property while the owner of the BTC Private Keys.Final said Odey, that he rate in addition to Gold around the investors, therefore, according to the better Safe-Haven Assets. Fortunately, there are Bitcoin is digital, not confiscated or Alternative that has a better rate performance. In this sense, we must sit back and wait to see what the future brings.75 % of private CFD accounts lose money. No EU investor protection.(Image source: Shutterstock)The versions in this article, no trade recommendations or investment advice.