dont reside in an established history of commercial usage or long-established cultural tradition<\/strong>. The precious metals company added,<\/p>\n“As such, the future of cryptocurrency is relatively uncertain. Whereas, the future of gold continues to remain bright.”<\/em><\/p>\nAs per a Barron’s article, the gold verses Bitcoin (BTC) debacle is an unevenly matched game as the limited history of the cryptocurrency<\/strong> makes it difficult to clearly define its role in a portfolio. As cryptocurrencies are still at an infancy stage, it is difficult to determine if digital tokens acts as a safe haven over the long term or if it behaves more similarly to speculative assets. The article stated,<\/p>\n“The cryptocurrency market’s recent troubles are at odds with the prevailing narrative of the past few years, which preached that these digital assets would take the place of [gold] as a haven in turbulent times. It should be clear now that the opposite is true.”<\/em><\/p>\nWhat is Expert’s Take on the Age-old Debate?<\/h2>\n
Will Rhind<\/strong>, founder of a leading ETF company, GraniteShares, said that Bitcoin (BTC) and other cryptocurrencies may be siphoning some capital away from gold, but it\u2019s too early to say if it\u2019s because they successfully hedge against inflation<\/strong>. He explained,<\/p>\n“The reason why people are buying bitcoin and cryptocurrencies at the moment is highly speculative. That\u2019s a complete risk-on situation. It\u2019s less defensive in my mind. The reason why people are buying gold at this point is much more defensive. It\u2019s around the inflation story. It\u2019s around the long-term preservation of capital or purchasing power.”<\/em><\/p>\n