A rising number of investors now choose Bitcoin over gold as a hedge against inflation says Deutsche Bank. At the time of writing this article, the Bitcoin price is trading at $18,238.71.
Investors Prefer Bitcoin Over Gold
According to a report published by Deutsche Bank’s strategist Jim Reid, investors are more interested in using bitcoin over the gold to hedge dollar uncertainty and rise. His research coincides with one lately published by JPMorgan that reveals institutional investors moving from gold to bitcoin.
Both Bitcoin and Gold are immune to excessive inflation. Bitcoin is limited to 21,000,000 coins with a fixed inflation rate every year, and gold can’t just be conjured up, so there is a natural limit to possible inflation. If the dollar/euro becomes worthless, it can be assumed that both assets continue to be credited with a value greater than zero.
You can share both assets and thus pay flexibly with these assets. With the help of the Lightning Network, it is possible to send fractions of cents and with gold, you could theoretically break the gold pieces down to the atomic level.
Reid further wrote that “Bitcoin is up another +3% overnight and seems to be creating the momentum of its own. It’s up over 70% over the last six weeks as more and more investors are starting to see it emerge as a credible asset to invest in.”