Insights

Why this expert thinks gold is a better investment than Bitcoin

Bitcoin vs. gold… Who wins?
The post Why this expert thinks gold is a better investment than Bitcoin appeared first on The Motley Fool Australia. –

Ever since the cryptocurrency Bitcoin (CRYPTO: BTC) exploded onto the mainstream investing consciousness, it has been compared to gold. Some investors even call Bitcoin ‘digital gold’, an alternative to the yellow metal for a modern world. After all, gold has been mined, collected and stored as an investment or store of value of thousands of years of human history. Bitcoin has been around since 2010.

So gold and Bitcoin do have some similarities. Both are finite and scarce commodities. Everyone knows gold is a rare metal. And there are only 21 million Bitcoins that can ever be mined. Because of this scarcity, many investors often claim that Bitcoin has the same inbuilt protections against monetary debasements like inflation or deflation.

Bitcoin is also often touted as an alternative to gold because of its decentralised nature and fungibility. Governments have little control over Bitcoin. And it can be used in a similar way with a consistent value anywhere on the planet. The same is more or less true for gold.

So is Bitcoin really the 21st century’s answer to gold? A decidedly medieval investment by comparison?

Well, one expert doesn’t think so.

Bouris: Bitcoin doesn’t shine up to gold

Mark Bouris is chair of the financial services group Yellow Brick Road. According to a report in The Australian today, he has a rather strong opinion on the idea of Bitcoin as digital gold.

Mr Bouris told the Australian that gold “has shown a consistent trajectory over the past few decades, and as a physical asset it tends to hold its value”. But in contrast, he sees cryptocurrencies like Bitcoin as nothing of the sort, noting their “extreme deviations and “lack of pedigree”.

Bouris also pointed to the recent legalisation of Bitcoin as legal tender in the Central American country of El Salvador. He pointed out that Bitcoin crashed by 10% just as it was legalised. “Blockchain technology is pretty cool and could have interesting and widespread applications in the future, but quite simply, it’s volatile,” he said.

The report also quoted the manager of listed products and investment research at the Perth Mint, Jordan Eliseo. Mr Eliseo agrees with this sentiment. Here’s some of what he added:

Gold is seen as the ultimate safe haven, with a multi-millennia track record of preserving wealth… Despite the hype, cryptocurrencies remain a market characterised by enormous volatility, and have so far failed to act as safe haven asset in the traditional sense over the last 10 years.

So it appears that opinions on just what Bitcoin can (or should) be used for do differ wildly around the world. It seems only time will tell which clothes Bitcoin will end up wearing. It could well be digital gold, a currency or a speculative asset. Or it could end up being… er, rat poison, as Warren Buffett’s right-hand man Charlie Munger once put it.

The post Why this expert thinks gold is a better investment than Bitcoin appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Survey reveals big shift in Australians investing in Bitcoin and Ethereum

Bitcoin just crashed 11%. Here’s why…

Bitcoin cracks above US$50,000 as more altcoins soar… now what?

These 2 altcoins are leaving Bitcoin in the dust this week

Billionaire investor: Bitcoin going to zero but this ASX share should shine

Motley Fool contributor Sebastian Bowen owns shares of Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!