Inflation is a consistent phenomenon, it hits when we least expect it, but during these hard financial times, people look for things and monetary possessions that can help them through this difficult period. For years gold was considered the ultimate hedge against inflation; people used to pour all of their money into gold and other funds which are traded in comparison to gold so that when the inflation period is over, they would have a sufficient sum of money to build their lives again.
The whole thing would have continued the way it always has been but here entered Bitcoin. According to Frank Holmes, the CEO of US global investors, gold being the hedge against inflation, doesn’t hold as much competitiveness as Bitcoin does presently. The decentralized nature of Bitcoin is what has lured investors and traders into making Bitcoin the ultimate spotlight of their investment. These are not your typical day-to-day investors, these are institutional investors who know what they’re doing, and from all the best commodities, they have now chosen Bitcoin.
Bitcoin Has More Features Than Gold
The very reason why Bitcoin has the upper hand over gold is that it is portable and a private commodity. Gold lacks both of these things, and that is why it might be left behind in this race to battle inflation and stabilizing the world economy. Bitcoin might have lured away a big portion of investors to invest in the digital asset, but there is a whole other population of investors and traders out there who prefer gold to Bitcoin any time of the day. Why these people can’t see the future and still are investing in gold, says Holmes.
The very reason as he describes it is that they have their mindset over gold, they have seen amazing returns over the years with this particular commodity, and they are not going to let go of this wonderful opportunity that has always been there beside them, not for Bitcoin and not for any other commodity. But when the global shift takes place and Bitcoin becomes the ultimate store of value, the strict gold investors would surely be pitching in.