There has been a longstanding debate within the cryptocurrency space and beyond regarding the best asset that serves as a store of value.
Investors and market experts have been arguing about Bitcoin and Gold and which of the assets serves as the better store of value. Bitcoin is regarded by many as the digital gold, but the leading cryptocurrency has outperformed the precious metal since it was launched a decade ago.
Mad Money host on CNBC Jimmy Cramer has voiced his opinion on this debate during a recent session. When a caller asked about gold’s status as a hedge against inflation, Crammer replied that he believes gold has lost its status as the store of value.
Cramer stated that he prefers cryptocurrencies like Bitcoin as a hedge against inflation and the store of value over gold. In the past, Cramer said he recommended investors put 10% of their portfolio in gold, but he now recommends only 5%.
Bitcoin has outperformed gold over the past few months. Despite the recent dip in price, Bitcoins value is still up by more than 50% since the start of the year. Meanwhile, gold has lost more than 6% of its value during that period. Thus, indicating which of the asset is performing better now.
While Bitcoin was initially created to serve as a medium of exchange, the cryptocurrency has evolved over the past few years and is now considered as a store of value by most investors. This has seen huge companies like MicroStrategy and Tesla add bitcoins to their balance sheets.
Bitcoin has underperformed over the past few weeks. The leading cryptocurrency reached a new all-time high of $69,044 in November. However, its value has dropped by nearly 30% since then, and it is currently trading below the $50k level. Market experts and investors are still optimistic about the medium and long-term prospects of Bitcoin.