‘Faster Horse’ Bitcoin Will Continue to Outperform Gold, Says Bernstein Investment Research: Report
Wall Street firm Bernstein Research is arguing for Bitcoin (BTC) as a hedge against a potential economic recession and deterioration of the US dollar, according to a CNBC report.
The report cites Bernstein Research’s analysts, who said that while gold is becoming increasingly attractive, Bitcoin is seeing lower interest despite offering better returns.
“Despite Bitcoin being the best performing asset this year (up about 71% year-to-date), there is limited belief that structurally this is a new Bitcoin cycle and that Bitcoin will see new allocations.”
According to the report, Bernstein analysts have compared the relatively lower interest Bitcoin enjoys relative to gold to “hating a faster horse.”
“When there is a massive monetary degradation event, while both Bitcoin and gold rally, Bitcoin outperforms gold.
For example, post-Covid monetary printing, Bitcoin outperformed gold (2.9x over about 3.5 years).
In fact, even this year, as fears of the banking crisis have escalated, Bitcoin is up about 71% year-to-date, versus gold rallying about 10% year-to-date.
In our view, liking gold but not liking Bitcoin is like hating a faster horse.”
The report comes about a week since the CEO of exchange-traded fund (ETF) giant VanEck, Jan van Eck, predicted that both gold and Bitcoin are set for multi-year bullish runs amid the banking crisis and the possibility of an economic recession. The VanEck CEO says Bitcoin investors see it as a hedge in their investment portfolios.
“It is [Bitcoin] up like 70% year-to-date, best performing asset, again, rewarding people who own Bitcoin for that thesis of having a hedge in their portfolio.”
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