Here's what bitcoin bulls are saying as priceđ¨đ¨â°ď¸â°ď¸đ remains stuck during global rally
Itâs no secret that bitcoin BTC$89,145.47 is currently failing its many narratives, including the claim that it can serve as an inflation hedge or a safe-haven asset amid uncertainty.
While gold has climbed more than 80% during this period of high inflation, geopolitical skirmishes, and interest rate uncertainty, bitcoin has dropped 14% year over year.
In theory, assets that protect against inflation should rise when the value of money falls. For gold and the rest of the precious metals complex, that theory has worked. For digital gold, not so much.
That divergence has raised fresh questions: why would anyone buy bitcoin now when precious metals and equities give better returns?
CoinDesk has asked a group of longtime bitcoin bulls, and this is how they are defending buying bitcoin:
Comfort in the known (Jessy Gilger, senior advisor at Gannett Wealth Advisors, a bitcoin-native wealth management firm)
"Goldâs current surge is a temporary political distraction. In times of fear, institutions tend to retreat to what they know because they often lack the foresight to embrace a genuine phase shift in technology. We are currently seeing a historical standard deviation move in the GLD/BTC power law ratio, but hard assets are a long game.