Jan Van Eck, CEO of Van Eck Associates, steered that buyers at the moment are turning their consideration to gold, leaving Bitcoin and different cryptocurrencies behind.
In current interview with CNBC, Jan Van Eck famous that Bitcoin managed to pull “a little bit of demand away from gold” in 2017, however added that information confirmed issues are altering:
“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,” he mentioned.
During the identical interview whereas speaking about Bitcoin exchange-traded funds (ETFs), Tim Seymour, founder and chief funding officer of Seymour Asset Management, declared that Bitcoin’s perform as a retailer of worth is questionable:
“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.”
Notably, whereas the S&P 500 dropped 14% within the fourth quarter of final 12 months, the GDX ETF rallied 14%, a pattern that modified this 12 months, with GDX rising lower than 1% and the S&P 500 rising 6%. So far this 12 months, bitcoin has been underperforming each.
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