In a new interpretation of Bitcoin's competitive landscape, expert Horsley proposes that the real rivals of this cryptocurrency are not precious metals but government bonds.
Bitcoin and Gold: Nature Differences
Horsley notes that "Gold and Bitcoin are both apolitical stores of value." While gold is less volatile, Bitcoin remains a highly volatile asset. Both appeal to investors seeking value protection independent of state influence.
Government Bonds as Political Assets
According to Horsley, government bonds represent the "ultimate political store of value." Their performance is shaped by interest rate policy, central bank decisions, and fiscal strategies.
Bitcoin's Prospects in Traditional Finance
Horsley argues that Bitcoin is set to rival these instruments—not because it mirrors them, but because it offers an alternative grounded in decentralization and fixed supply. He emphasizes that for the average person, stores of value can differ, citing residential real estate as an example.
Commenting on the current situation, Horsley underscores that viewing Bitcoin not just as a hedge against inflation but as a challenge to traditional governmental monetary tools may become a significant discussion point among institutional investors.
