Having a market cap of over two trillion, and a price of bitcoin that is traded at less than 118, 000, the cryptocurrency has become a store of value that can compete against precious metals. Almost 1.3 million BTC are owned by listed companies, and that spells more institutional confidence. As gold fetches a close above a record price of $3,355 a ounce, analysts are saying that Bitcoin is no longer a matter of pure speculation but a usable hedge.
5% Allocation Strategy of Lyn Alden
Macro analyst Lyn Alden advises gold holders to proportion 5 percent of their gold portfolio to Bitcoin. It has an upside potential in case Bitcoin continues to perform alongside limiting downside risk. So, say that one has a metals portfolio of 100k to hedge. Only 5k worth of BTC would be necessary to achieve a strategic hedge position, not getting rid of gold itself.
Historical Switch in Perspective
Vijay Boyapati, the author of The Bullish Case for Bitcoin, said he previously viewed Bitcoin as protection against gold but in the current worldly view, he is seeing gold as protection against Bitcoin. BTC is likely to shift, because over the past 10 years the type of risk associated with it has reduced. Furthermore, it has shown itself to be well within the scope of an institutional-grade store of value.
Cynicism Still Lingers but so are the figures
The opponents such as Peter Schiff claim that silver offers more potential and less risk compared to Bitcoin. Nevertheless, his warnings are less effective, however, adoption and liquidity increase. The statistics prove the argument of Alden and Boyapati. A a low percentage of Bitcoin investments allows gold investors to protect themselves against possible future changes caused by the rise of digital assets.
