Industry leaders across the globe are anticipating that Bitcoin will be worth more than gold. For instance, Eric Peters, the CEO and co-founder of One River Asset Management, has placed the value of Bitcoin at approximately $500k, while expecting the leading cryptocurrency to be worth more than gold. While Bluford Putnam, chief economist and managing director of CME Group, sees bitcoin as an emerging competitor to gold.
One River Asset Management CEO Expects BTC to Worth More Than Gold
Just last week, Eric Peters appeared in an interview with Bloomberg where he spoke on cryptocurrencies. Firstly, he revealed that his asset management holds bitcoin worth over $1 billion. He then proceeded to talk about cryptocurrencies saying it has some unique qualities, part of which resemble the qualities of gold except that cryptos are quite underpriced relative to gold.
Moreover, he also stressed that Bitcoin appears unique to gold due to its technological properties. For instance, gold has looked the same two thousand or two billion years ago and will continue looking the same two billion years from now. While in contrast, the technological aspects of cryptocurrencies will make them different in the next decades to come.
He also compared bitcoin to gold in contrast to Bitcoin’s fixed supply of 21 million bitcoins, saying:
“I think it will be worth more than gold at some point because gold is not infinite. Gold continues to increase in terms of supply.”
CME’s Chief Economist Optimistic on Bitcoin Over Gold
Meanwhile, Bluford Putnam, chief economist and managing director of CME Group, explained in a video posted by Bloomberg saying that the production supply of Bitcoin likely to increase in 2021 in contrast to Bitcoin‘s fixed supply. Although, he did warn that the fixed supply of Bitcoin does not necessarily indicate less volatility. Putnam has also noted that his firm has begun to notice gold’s waning appeal as a hedge against global political risk, saying:
“In the 2017-2020 period, the mostly ups and occasional downs of the gold price appeared to be directly tied to the U.S. Federal Reserve policy shifts more than anything else.”
The chief economist also noted that, since equities respond to the same driving force in markets around the world, the gold-equity relationship tends to become tighter. This only indicates gold’s weakening as a safe-haven asset.