Wall Street firm Bernstein Research is making the case for Bitcoin (BTC) as a hedge against a potential economic recession and the debasement of the US dollar, according to a CNBC report.
The report cites Bernstein Research’s analysts, who said that while gold is increasingly becoming attractive, Bitcoin is seeing a lower interest despite offering better returns.
“Despite Bitcoin being the best-performing asset this year (up approximately 71% year-to-date), there is limited belief that this is structurally a new Bitcoin cycle, and that Bitcoin will see fresh allocations.”
According to the report, Bernstein analysts have likened the comparatively lower interest Bitcoin is enjoying vis-à-vis gold to “hating on a faster horse.”
“When there is a massive monetary debasement event, while both Bitcoin and gold rally, Bitcoin outperforms gold.
For example, post-Covid monetary printing, Bitcoin outperformed gold (2.9x over approximately 3.5 years).
In fact, even this year, since the banking crisis fears have escalated, Bitcoin rallied approximately 71% year-to-date versus gold rallying approximately 10% year-to-date.
In our view, liking gold, but not liking Bitcoin is like hating on a faster horse.”
The report comes about a week since the CEO of exchange-traded funds (ETF) giant VanEck, Jan van Eck, predicted that both gold and Bitcoin are set for multi-year bullish runs amid the banking crisis and the possibility of an economic recession. The VanEck CEO says Bitcoin investors view it as a hedge in their investment portfolios.
“It’s [Bitcoin] up like 70% on the year, best-performing asset, again, rewarding the people that own Bitcoin for that thesis of wanting a hedge in their portfolios.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
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 loses 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.
Generated Image: Midjourney
