Edmund Moy, a senior IRA strategist at the U.S. Money Reserve, the primary distributor of precious metals issued by the U.S. federal government, indicates that on the surface, Bitcoin could become a competitor to gold since both are alternative assets that can help reduce risk in traditional portfolios. Cryptocurrency bulls have long touted Bitcoin as 'digital gold,' and Federal Reserve Chair Powell recently stated that Bitcoin is 'like gold.'
Edmund Moy believes that their 'differences outweigh their similarities,' and that the correlation between gold and Bitcoin is not strong. Given the uncertainty of the coming year, this may be the strongest reason for investors to hold both. Nevertheless, Edmund Moy states that investors seeking to diversify their portfolios should remember that diversification alone cannot completely eliminate risk, especially considering Bitcoin's volatility. (morningstar)

#BTC