CoinVoice has learned that, according to Morningstar, Edmund Moy, a senior IRA (Individual Retirement Account) strategist at the US Money Reserve, the main distributor of precious metals for the U.S. federal government, stated that on the surface, Bitcoin could become a competitor to gold, as both are alternative assets that can help reduce risk in traditional portfolios. Cryptocurrency bulls have long touted Bitcoin as 'digital gold,' and recently, Federal Reserve Chairman Powell also stated that Bitcoin is 'like gold.'
Edmund Moy believes that their 'differences are greater than their similarities,' and 'the correlation between gold and Bitcoin is not strong.' Given the uncertainty in the coming year, this may be the strongest reason for investors to hold both.
Nevertheless, Edmund Moy indicated that investors seeking to diversify their portfolios should remember that diversification alone cannot completely eliminate risk, especially considering the volatility of Bitcoin. [Original link]
