Both are very valuable and potential investments. it's just that they're different somehow. Market Cap Gold is currently very high, this is a backup for a country's wealth. And we know that gold has a very important value for a country. Because of this, Gold's market cap has always been number 1 for a long time. Meanwhile, Bitcoin is still a long-standing debate among several parties. Even though this time the development has started to be good, it has not been able to achieve the Gold brand market itself. But what's certain is that if it's in the top 10, that means it's truly recognized, right?
I think you are addressing the role of gold as monetary reserve of a country.
Yes, while Central Banks have been net buyer of gold for some time, they still don't accumulate BTC.
On the other hand, in the investment sector, the 1% rule is getting established, particularly among institutional investors:
“Nobody got fired for buying IBM” …but you might get fired for not buying Bitcoinin the next cycle, the institutions will show up, and because of the huge asymmetry in Bitcoin, they will find it compelling enough to allocate a small percentage to it.
I predicted a new investment mantra for institutional fund managers, “The 1% Allocation”.
Let the data points commence: Fidelity, with $12.6 trillion AUM and one of the spot ETF providers (the only one who built out their own custodian to handle it) has added an allocation of “crypto” to their flagship, “All-In-One Conservative ETF” – self professed as, “A one-ticket solution diversified across regions, market caps and investment styles/factors, with the attractions of professional management.”
The new 1% Rule: Buy BitcoinWe all know the old adage, “Nobody got fired for buying IBM”, which was a mantra back in the “Nifty Fifty” days (which was before my time, but there have always been later iterations: substitute IBM for Microsoft, Google, Apple, etc.)
Here’s what I think happens now: while today nobody may get fired for buying, say, The Magnificent Seven, tomorrow you may very well get fired for not plunking 1% into Bitcoin. Yes, really.
So I now humbly present you with “The Theme” of this cycle:
The Theme is: The Institutions are Coming.
The core driver is: The Bitcoin Spot ETFs.
The mantra will be: Allocate 1% to Bitcoin.
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