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The Fight For Dollars

Commentaries & Views

Yesterday I wrote about the competition of cryptocurrencies and gold, and this was met with a great deal of resistance from gold bugs. Looking at the facts and the reasons people buy gold, silver or Bitcoin, it is clear they are in direct competition. Gold is considered a safe-haven play, as is the cryptocurrency world, especially against fiat currencies.

Bitcoin is not a fiat currency and is not affected by the price of the U.S. dollar. Gold is more manipulated by movement in the dollar and the change of interest rates, making it more dependent on what fiat currencies are doing. Bitcoin trades in the true free market, while gold is tied in with monetary policy and not totally free.

Gold has held support and is higher this morning and Bitcoin is lower. Gold is always a good hard-asset investment and everyone should own a percentage in a portfolio. Bitcoin is becoming more accepted but still has some possible issues. They are in competition for consumer dollars. Gold looks like the safer play, but cryptocurrencies are real and can be bought in small quantities.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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