Bitcoin (BTC) has been trudging through some rough waters lately. With the constantly fluctuating crypto market, its safe to say that the public’s faith in the king of crypto has been stirred, if not shaken. And if you think its not so bad, well, we hate to break it to you, but its “people going back to gold” bad. You read that right. Jan Van Eck, CEO of Van Eck Associates, suggested in an interview, that Bitcoin investors have moved to gold.
The Investment management firm, Van Eck, is most known for its famous Gold exchange-traded funds (ETFs), the GDX gold miners ETF and the GDXJ junior gold miners ETF. And apparently those assets have been acting tremendously well over the last two or three months, according to Eck himself. He also went on to explain them a little, underlying that they seemingly do the opposite of what stock markets do.
During his interview with the CNBC, published on Jan. 26, Eck shared that he thinks that Bitcoin was able to pull the demand away from gold during its peak time, in 2017. He further added,
Interestingly, we just polled 4,000 Bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to Bitcoin and now it’s going the other way.
It seems like people are aborting a possibly sinking ship. Which might not actually sink, but the investors are apparently not taking any chances.
Furthermore, in the same interview, Tim Seymour, founder and chief investment officer of Seymour Asset Management, discussed about Bitcoin exchange-traded funds. And he proclaimed that Bitcoin’s function as a store of value is questionable, saying,
Not only have we lost all liquidity on the underlying [commodity] but truly outside of the existential blockchain argument, it’s been very difficult to argue store of value which is really what we started hearing about. Gold is a store of value and there’s no disputing that.
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