Bernstein says bitcoin benefits over gold

Analysts highlighted the higher yield of cryptocurrency compared to precious metal

12.04.2023 - 16:15

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2 min

What’s new? Analysts at Bernstein believe that bitcoin will outperform gold as a hedge against a possible economic recession and the depreciation of the US dollar. At the moment, however, investors’ interest in the first cryptocurrency is much less than in gold, even though BTC has shown a 71% growth since the beginning of the year, and the precious metal only 10%. Bernstein compared less investor interest in bitcoin to “hating on a faster horse” and called it irrational, CNBC reports, citing the brokerage’s report.

Material on CNBC’s website

What else is known? According to analysts, when there is a large-scale depreciation of the money supply, both gold and bitcoin demonstrate growth, with BTC always outperforming the precious metal. For example, after the massive issuance of fiat currencies during the COVID-19 pandemic, bitcoin outperformed the precious metal by a factor of 2,9 in about three and a half years. However, despite the higher yields, bitcoin has received less interest from investors.

Bernstein’s report comes a week after Jan van Eck, the CEO of crypto fund VanEck, said that problems in the US banking system have boosted the value of gold and bitcoin, which many investors see as insurance against currency depreciation. He believes both assets are at the very beginning of what could be a multi-year bull cycle.

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Earlier, Larry Lepard, head of US investment firm Equity Management, said that the first cryptocurrency may rise to $10 million as a result of the dollar crash, and the key advantage of BTC over gold will be limited issuance, which will eventually play an important role in long-term growth.

As of April 12, 15:50 UTC, BTC is trading at $29 970, down by 0,72% in 24 hours, according to Binance.

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