Bloomberg Analyst Compares Bitcoin to Gold! Can Gold, Which Has Been Breaking Records, Replace BTC?

The Bitcoin gold debate, which has been going on for years, has recently become one of the hottest topics in the financial market amid the increasing competition between the two assets.

While the price of gold has recently gained significant traction by reaching a new high of $2,530, Bitcoin is still ahead of gold.

Even as the precious metal gold has recently reached record highs, Bitcoin continues to dominate gold.

Addressing this situation, Bloomberg senior ETF analyst Eric Balchunas stated that the gap between the two assets has narrowed, but gold still has not been able to surpass Bitcoin.

Balchunas emphasized that despite the recent rise in gold and significant inflows into gold-backed ETFs, the leading cryptocurrency Bitcoin's dominance over gold as a store of value is still at the top.

Balchunas stated that investors have invested $2 billion in the SPDR Gold Trust (GLD) ETF in just six weeks and have benefited from gold’s 23% gain in the last 6 months, and that with this rise, gold has outperformed traditional stocks and once again demonstrated its position as a safe haven during economic uncertainties.

Balchunas said that despite the rise in gold, Bitcoin still has an advantage over gold in terms of performance, and that BTC's leadership continues with a thin margin of approximately 500 basis points.

Gold is finally getting rewarded for its big returns, $GLD took in $2b in last 6 wks, after going up 23% in past 6mo, crushing stocks. That said, it's still trailing bitcoin since ETF launch but not by much, maybe 500bps, gap closing quickly. Store of Value Smackdown in effect.. pic.twitter.com/jq5Zgfv5tH

— Eric Balchunas (@EricBalchunas) August 20, 2024

*This is not investment advice.