Financial markets will continue to debate the viability of Bitcoin (BTC) and gold, with cryptocurrency proponents suggesting the flagship digital asset could topple the precious metal. In addition to the store of value, the supply and scarcity of the two assets continues to generate debate.
In this line, in a Tweeter published on August 15, Foss Greg, a high-yield credit trading veteran with 30 years of market experience, pointed out that Bitcoin scarcity is more beneficial than gold.
According to the expert, the Bitcoin supply cap of 21 million is an added advantage as any price movement does not influence it. He noted that, unlike gold, miners would likely search for more deposits and bring additional supply to market if the metal’s value increased.
Bitcoin Remains Superior Despite Gold’s Large Market Cap
However, he noted that “this is why Bitcoin is so much better than gold” despite the precious metal having a higher market cap.
“If the price of Bitcoin doubles, triples or increases tenfold, we know what the supply is. It’s such a thing chose beauty. This is why Bitcoin is so much better than gold. That being said, gold is a $10 trillion market. It’s always a rounded tune,” he said.
Furthermore, he highlighted the importance of strategizing while investing in Bitcoin and Gold. According to Foss:
“If you’re going to invest in bitcoin, don’t put your money from gold and put it into bitcoin, put your money from bonds and put it into pure bitcoin.”
Status Bitcoin vs. Gold Tested
Notably, as Bitcoin matures, the asset has been seen as a potential replacement for gold as a store of value and as a hedge against inflation. However, this status was tested in 2022 amid the general crypto market crash. As Finbold reported, as of July gold has emerged as a better investment than Bitcoin since the start of the year.
However, a portion of the market, led by outgoing MicroStrategy CEO Michale Saylor, believes Bitcoin is on course to topple gold, suggesting that the flagship crypto will quickly demonetize the precious metal.
According to Saylor, Bitcoin’s path to replacing gold would be characterized by ups and downs like increased necessity.