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World Gold Council/2-2-2021
“The advent of blockchain and cryptocurrencies has catalysed innovation in the financial industry. Their proliferation and recent exponential price increase have captured investors’ imaginations. However, the developments in blockchain and cryptocurrencies do not imply that cryptocurrencies are a substitute for gold. The argument that gold and cryptocurrencies such as Bitcoin 2, 3 are similar appears to stem from perceptions of:
• their limited supply
• their role as alternatives to fiat currencies.
However, this comparison is simplistic and overlooks fundamental differences between gold and cryptocurrencies – not only in terms of their market dynamics but also in terms of their performance and the role they play in portfolios.”
USAGOLD note: Most of our clients have not had a great deal of difficulty separating the differences between cryptocurrencies (if we can call them currencies) and gold. We post this article for the general reader who may be intrigued with the cryptocurrency argument and see it as a competitor and alternative to gold. The World Gold Council does a good job of explaining the many differences between the two in this article and why gold is likely to remain the top choice among investors as an alternative to local fiat currencies.
Courtesy of World Gold Council-GoldHub • • • Click to enlarge
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