Generally seen as a safe haven asset and a hedge to combat inflation, gold is the number 1 reserve asset of central banks around the world. However, asset manager Bernstein believes that Bitcoin (BTC) could take over this role in the medium term.
Over the next decade, Bernstein believes Bitcoin will take over from gold
What if Bitcoin (BTC) came to replace gold as an essential investment asset and reserve asset in the world? That's what the asset manager thinks Bernstein which states that within ten years, cryptocurrency could take over the role of the most precious and noble of metals.
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In a note, Gautam Chhungani, analyst for Bernstein, returned to this prediction:
We expect that Bitcoin emerges as leading “store of value” asset of the new era, ultimately replacing gold over the next decade, and becoming a permanent part of institutional multi-asset allocation and a standard for corporate cash management.
This analysis came just a few hours after the price of Bitcoin experienced a rebound allowing it to cross the symbolic level of $100,000 for a time and reach its ATH at $103,679.
Since the announcement of Donald Trump's victory in the American presidential elections, the price of cryptocurrency increased by 35%. Even more impressive, its course is up almost 140% since the start of the year.
This upward trend encourages many political figures to react favorably around Bitcoinwhile they could have been reluctant towards cryptos in the past. So, Jerome PowellChairman of the United States Federal Reserve (FED), compared Bitcoin to gold, considering it a real competitor to the gold metal.
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Is Bitcoin on the verge of becoming a must-have reserve asset?
In addition to Bernstein analyst Gil Luria of investment bank DA Davidson, also looked at the future of Bitcoinmaking the comparison with gold:
I view Bitcoin's primary current application as a store of value, a low-correlation, appreciating asset which could in the future replace gold as a hedge against a decline in economic stability.
DA Davidson's collaborator nevertheless specifies that at present, gold is seen more as a safe haven asset and a hedge against inflationunlike Bitcoin, “ despite studies proving that Bitcoin price fluctuation is weakly correlated with inflation “.
👉 Also read – Why did Bitcoin end up exceeding $100,000?
For Gil Luria, “ it is certain that there is still a long way to go before Bitcoin was widely accepted as a medium of exchange and reserve value “.
During November, Bernstein sent an advisory note to his clients, inviting them to buy everything you can » in terms of cryptocurrency. For the asset manager, Bitcoin could well reach the $200,000 mark by the end of next year. A prediction that several analysts agree with.
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Source: CNBC
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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