The economist shared a chart showing that since the October peak of Bitcoin at around $126,000, the first cryptocurrency has fallen by 21.6% and is currently trading at $87,000. Gold during this same period has risen by about 48% — the value of the precious metal has surpassed a record $5,000.
According to Hanke, this rise in gold indicates a steady demand for this safe-haven asset, which maintains and increases its value even in times of crisis and economic instability. However, Bitcoin remains volatile, with prolonged downturns, Hanke notes. The divergence between gold and Bitcoin in the chart suggests that when investors seek to preserve capital, they choose gold, asserts the professor.
Hanke has long criticized bitcoin for lacking intrinsic economic value, as it does not generate income, does not grant owners rights to productive assets, and is not widely used as a currency.
Previously, the professor urged governments not to add bitcoin to the state strategic reserve, and large companies not to place bitcoin on their balance sheets due to the high volatility of the cryptocurrency. The economist categorically disagrees that the limited supply of bitcoin at 21 million coins will contribute to the widespread use of BTC in the financial market.
According to Hanke, the price of bitcoin mainly depends on speculation rather than fundamental factors. Previously, Hanke stated that bitcoin is still far from fiat currencies: the Japanese yen, US dollar, and euro.
