Analyzing the protective properties of Bitcoin and gold, Bloomberg analyst Athanasios Psarofagis noted that gold significantly outperforms cryptocurrency during market downturns.
Gold vs Bitcoin: Asset Protection Properties
Athanasios Psarofagis mentioned on the 'ETF IQ' program that during declines in the S&P 500, gold demonstrates a more stable performance compared to Bitcoin. He explained that even when the market rises, Bitcoin offers higher potential returns, but during declines, gold is clearly superior.
Volatility of Bitcoin and Gold
Psarofagis emphasized that both investments are volatile assets, yet Bitcoin is more fragile. He also pointed out the ambiguity regarding Bitcoin's status as a currency, a store of value, or a speculative asset.
Investor Interest in Bitcoin
The analyst noted that Bitcoin's limited supply of 21 million and its inability to be replicated by governments attract investors. However, during the decline of tech stocks, Bitcoin did not provide the expected support.
Thus, according to the analyst, gold shows greater resilience during economic downturns while Bitcoin is more suitable for speculative investments during upward trends.
