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George Aliferis, CAIA's avatar

It would really be interesting to see if Bitcoin could take over Gold's role. It wasn't really the case during the first Covid crisis but could investors opinion of Bitcoin have changed? Both gold (or Bitcoin) both work as insurance against crises because enough people believe they will.

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Joachim Klement's avatar

I think the perception about Bitcoin is quite different from gold. Gold is perceived as a crisis hedge and inflation hedge while I think Bitcoin is perceived as an inflation hedge (or rather a hedge against central bank overreach) and a high return asset. So one is driven more by fear, the other one more by greed.

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George Aliferis, CAIA's avatar

I hadn't seen it this way but I like this a lot. Very useful distinction thanks!

If institutions fail but the internet is still on, we could still use blockchain.

If everything fails and I have to barter something against food, gold should be useful.

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Kris's avatar

Interesting study. The authors should go back further in history to back-test gold’s role in pre- & post-gold standard periods.

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