Bitcoin vs Gold

Cryptos attract a certain range of investors. e.g. younger generation that’s disenchanted with global financial systems; tech enthusiasts; fin-tech enthusiasts; die-hard inflation believers that also believe centralised finance is rigged so want alternative inflation hedge, etc There’s no doubt that this creates a degree of competition for traditional havens. Maybe only a few % of crypto wealth would have been put into gold plays if crypto wasn’t around, but a few % of 2 trillion dollars is nothing to sneeze over.

For me, crypto plays like bitcoin is for people who don’t have a clue about crypto. Sure, there’s a narrative that it’s like digital gold. i.e. the benefit is that it doesn’t come attached with logistical / storage / security costs traditionally limiting access to bullion to the rich… The key thing is that the big banks are officially advising their top customers to keep 1-2% of their assets in crypto. KPMG and other big consulting companies are also exploring impact of integrating crypto into Basel IV. That is huge!

If you want to look into crypto, watch some youtube documentaries on where Cardano and Polkadot are heading. You’ll quickly understand that dismissing crypto today is like denying wifi will take off 30 years ago.