Gold followers recognize the appeal of Bitcoin

Is Bitcoin Better Than Gold? This question has fascinated the Bitcoin community since its inception. In fact, many people even call Bitcoin “digital gold“This cryptocurrency has developed as a store of value for the wealth of many people.

MicroStrategy CEO Michael Saylor is one of the most notable names of recent times. In fact, the executive went so far as to comment that short-term hedge funds will soon start selling their gold to buy bitcoin as the currency becomes scarcer.

As more mutual funds turn to cryptocurrencies as portfolio diversifiers, why is Bitcoin a better investment than gold? Speaking to Kitco news agency, Frank Holmes, CEO of US Global Investors, gave a number of reasons why he thinks this is right.

Although his hedge fund deals primarily with precious metals, Holmes found that these are unlikely to be worth the same as Bitcoin in the future. In addition, institutions that invest in gold run the risk of being investigated by large financial institutions such as banks.

On the other hand, Bitcoin’s decentralized nature makes it more attractive to investors. Holmes added that it also has an advantage over gold as it is a private good and is very portable.

In fact, a recent survey of institutional investors found that Bitcoin’s “innovative technology game” is the second most popular factor in its appeal. In addition, Bitcoin’s presence on social media platforms like Reddit also serves as an important gateway for young investors in this digital age.

According to the Holmes manager, retail investors were drawn to the digital asset because of its limited supply and informed nature before institutional investors flooded the market this year. He pointed out that this is something that precious metals don’t have.

Now that institutional investors are increasingly interested in investing in digital currencies, what can CEOs do to ensure they remain influential in both asset classes? According to Holmes, they need to reposition and diversify their offerings to ensure customer satisfaction.

Unsurprisingly, his firm recently announced a $ 566,389 stake in Greyscale Bitcoin Trust stock. Previously, this fund was primarily marketed for investment in precious metals, oil, minerals and other natural resources.

The gold price has recently faced stagnation. Indeed, the price has been falling since the beginning of the year, at a time when inflation and economic stagnation were ubiquitous. Bitcoin, on the other hand, has seen a positive ROI greater than 300% at the time of writing.

Institutional interest in Bitcoin is growing day by day. The aforementioned Fidelity study found that 37% of the investors surveyed have Bitcoin in their portfolio. In addition, the institutional adoption of Bitcoin in Europe has increased 22% year over year.

Right now, Holmes is becoming increasingly interested in Bitcoin and he believes institutional money won’t stop pouring into it.

The source: ambcrypto