Better Buy: Bitcoin vs. Gold

Core Insights - Bitcoin has increased by 30% this year, while gold has surged by 50%, which is an unusual trend compared to historical performance [1] - Historically, Bitcoin has been the top-performing asset class in 9 of the past 12 years, often outperforming gold significantly [2] - In years of Bitcoin's decline, gold has proven to be a reliable safe-haven asset, with minimal losses during Bitcoin's downturns [3] Historical Performance - In 2023, Bitcoin rose by 157%, while gold only increased by 15% [2] - In 2021, Bitcoin's value increased by 60%, contrasting with a 4% decline in gold [2] - In 2022, Bitcoin lost 65% of its value, while gold was up by 0.4% [3] - Bitcoin has shown extreme volatility, often losing more than half its value every few years [5] ETF Performance - Since the launch of spot Bitcoin ETFs, they have significantly outperformed gold ETFs, with the iShares Bitcoin Trust up 180% since January 2024, compared to a 97% increase in the iShares Gold Trust [4] Market Trends - Both gold and Bitcoin have seen substantial gains this year as Wall Street traders engage in the "debasement trade" [6] - Despite gold's current outperformance, Bitcoin is expected to outperform gold in the long run [6] Digital Gold Concept - Bitcoin is increasingly referred to as "digital gold," given its scarcity, with only 21 million bitcoins that can ever exist [7] - Bitcoin may serve as a hedge against macroeconomic uncertainty and geopolitical risks, similar to physical gold [8]