Gold’s Upside Now Pales in Comparison to Bitcoin (BTC): Weiss Ratings

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Weiss Ratings predicts the value of gold will increase once the coronavirus pandemic is over, but says its upside pales in comparison to that of Bitcoin (BTC).

According to the crypto ratings agency, the digital nature of Bitcoin gives it several advantages over gold, the traditional hedge against inflation.

“Government bureaucrats cannot inflate away the purchasing power of your gold like they can with fiat currency. But they can send their storm-troopers stomping in to seize it.

In 1933, a U.S. President famously confiscated all the gold in America. Australia’s 1959 Banking Act empowered the government to force private citizens to turn in their gold for paper currency. [And] in 1966, Britain’s Labor government made it illegal for any person to own more than four precious metal coins.

Don’t think stuff like this can’t still happen. Bankrupt, spendthrift governments — especially when their backs are against the wall — will grab just about any assets they can lay hands on.”

Bitcoin is also more mobile than gold, argues Weiss Ratings, because it requires costly permits and protection during transport.

The same is true when it comes to storage. Gold needs a secure location like a vault or bank, but Bitcoin does not have the same requirement because there is no physical asset to store.

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At time of publishing, Bitcoin is equivalent to $8,534, according to CoinMarketCap, but Weiss expects it to rise in the long run, after the halving further slashes the rate of new supply entering the market.

“…3 or 4-fold gains are well within the realm of possibility. Already, since the mid-March flash-crash in the investment markets, Bitcoin has been outperforming gold 5-to-1.”

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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