Analyst: Bitcoin Will Not Be Able to Shift Gold Position as a Safe-Haven Asset
Although many Bitcoin investors believe that multi-layer scaling solutions such as "Lightning Network (LN)" will ultimately make BTC a viable payment instrument to become a currency that can be used daily. Most argue that the number 1 case of short-term cryptocurrency primary use is "digital gold." However, an equity analyst at one of the most respected investment research companies in the world said that he did not expect Bitcoin to make a real impact on the yellow metal market share. that.
Analyst: Bitcoin Will Not Steal Gold Luster
Writing in the short form investment commentary series Morningstar Research Services, "Morningstar Minute," equity analyst Kristoffer Inton noted that if Bitcoin starts to replace gold as a safe haven asset, it would represent a "seismic shift" in the case of investment. For precious metals because 40 percent of gold is from investors.
"If crytpcurrency is to replace the case of gold investment, the implications for the price of gold will be very detrimental. 40% of gold demand is related to investment, so a change in investment from gold to cryptocurrency will be a seismic shock. "
However, Inton, who has been at Morningstar since 2013, wrote that the company has created a ownership framework to evaluate assets as a store of value and found that cryptocurrency does not get a good score in this rubik, which directs it to continue to recommend long-term investments in gold stocks. Including Goldcorp.
"To assess threats, we have created a framework to assess the feasibility of any asset class as a safe haven by focusing on liquidity, functional objectives, scarcity of supply, future demand certainty, and permanence. Through this framework, we conclude that cryptocurrency does not and will not challenge gold as a class of safe-haven assets. "