🌟 Gold vs Bitcoin: Who Can Outperform Inflation?
This year, gold and bitcoin are facing rising inflation pressures, and both assets are seen as hedges. However, their performances have been quite different.
The Federal Reserve recently made its third interest rate cut but lowered its expectations for rate cuts in 2025, which triggered market concerns and led to the Dow Jones Industrial Average dropping over 1,000 points. In such an economic environment, the advantages and disadvantages of gold and bitcoin are magnified.
Gold and bitcoin are considered ideal choices for inflation resistance due to their limited supply. However, in reality, gold prices are influenced by interest rates because it does not generate cash flow. Bitcoin's price is primarily driven by market speculation, especially with the launch of bitcoin ETFs and political factors at play.
Famous investor Paul Tudor Jones once said, "All roads lead to inflation... I am long on gold, and I am long on bitcoin." This statement reflects the confidence in the investment community regarding these two assets.
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