In recent years, a wave of discussions has been unleashed between gold and Bitcoin supporters to present their asset as the best one to the world's investment community. Both communities claim that they are the best (and only) option to counteract the disastrous effects of the fiduciary model on the global economy, launching arguments on specialized pages, social networks, television programs and even in public squares to attract attention as if they were pastors trying to attract new faithful to their church.
Gold supporters claim that BTC is a kind of fraud highly manipulated by anonymous individuals, which is why institutions and wealthy investors avoid cryptocurrencies due to transparency issues, while speculative retail investment makes bitcoin behave as an excessively risky asset. According to Goldman Sachs, one of the world's largest financial institutions, "We see no evidence that the bitcoin rally is cannibalizing the gold bull market and believe the two can coexist."
On the other hand, gold advocates believe that the precious metal has for centuries proven its value as real money, as well as being the main bastion of the global economy with every crisis always occurring every 10 to 20 years. Although BTC may be reducing part of the demand for gold, for gold lovers its position as a safe haven value par excellence will endure.
Those who defend Bitcoin direct their arguments towards the fact that most of this market has been "kidnapped" by institutions such as Goldman Sachs, who apply the same strategy with the metal as they do with fiat money, that is, they issue millions of paper positions under the assumption that they are backed by physical gold, so that the investor delivers his money believing that the metal they keep in a vault is theirs when the reality is that perhaps not a single gram of gold remains inside those facilities. Likewise, the institutions will never give you the physical gold you deposit, only the dollars, euros or any fiduciary money you have agreed with them (without a doubt, an absolute Ponzi scheme).
On the other hand, the price of gold has been so manipulated that it no longer offers guarantees (BTC supporters believe so) as a true safe haven security. In recent months gold has only experienced a rise of 24%, although it has reached its highest historical levels with respect to all fiat currencies (euro, dollar, pound) comparatively speaking BTC exceeds it with an astronomical 218% and with nothing to indicate that this figure will vary downward in the current year, on the contrary, a dizzying increase in the price of cryptocurrency is expected as the economic crisis worsens.
Those of us who own BTC know and are convinced that this is a safe haven value as important or more important than gold, we have no doubts about the capacity and the bright future of this cryptocurrency, however there are situations that we also have to consider to maximize our investments and in that I believe that physical gold can play a very important role in our finances. It is clear that the institutions will no longer be able to manipulate the gold bubble with their strategy of flooding the market with paper gold (worthless), then that will be the time to see the value of the precious metal take off at the same levels as BTC, yes, only for those who own it in physical form.
There are also things that we must prevent with respect to BTC that are not under our control, for example, electricity, a strategic element for the implementation of the cryptocurrency blockchain, which is usually distributed by private companies and in other cases by governments. A power outage could affect the operation of cryptocurrencies, and telecommunications services could also threaten the use of our funds in digital money, so it is always useful to foresee a physical "Plan B", and gold and precious metals can certainly provide great help in case of emergency.
It is clear that both gold and BTC will continue to be at the forefront in the fight against the domination of the fiat model and using both assets to our advantage is a smart move for the future.
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Quite right!
An excellent cut through the polemic and recognition that both physical gold and BTC are excellent stores of value.
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Yes, I think both assets complement each other and if we know how to make them perform well we will have a great and powerful investment in the future.
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