“I’m not saying it won’t—I just think gold has worked as an inflation hedge for centuries, so people should use gold in combination with Bitcoin as a hedge,” he said.
The spot price of gold has dropped 1.8% this year, while Bitcoin has gained more than 130% in that span, according to data compiled by Bloomberg.
“People are looking for places to put their money,” JJ Kinahan, chief market strategist at TD Ameritrade, said by phone. But, he added, “it’s hard to say if it’s an inflation hedge or not because we haven’t lived through inflation with cryptocurrencies. It’s one of those things where everyone thinks it will be, but time will tell.”
This article was provided by Bloomberg News.