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Here's Another Piece of Evidence That Bitcoin Is Becoming "Digital Gold"
Bitcoin (CRYPTO: BTC) has often been called "digital gold," supposedly able to preserve an investor's purchasing power from inflation. But for the most part, such claims have yet to face a real test.Nonetheless, there's now one more piece of evidence suggesting that at least some investors are putting their money where their mouth is with regard to the cryptocurrency's merits as a safe haven. Here's what's happening and how it changes the calculus for these investments.One way to gauge how enthusiastic investors are about an asset is to measure the inflows of money to exchange-traded funds (ETFs) that hold the asset. If people are eager to hold something like a cryptocurrency or a commodity, they'll allocate their capital to financial vehicles that allow them to hold that asset by proxy if anything might prevent them from holding it directly. For both gold and Bitcoin, such scenarios exist, so inflows to ETFs are a valid way to see what's in demand.Continue reading
Bitcoin (CRYPTO: BTC) has often been called "digital gold," supposedly able to preserve an investor's purchasing power from inflation. But for the most part, such claims have yet to face a real test.
Nonetheless, there's now one more piece of evidence suggesting that at least some investors are putting their money where their mouth is with regard to the cryptocurrency's merits as a safe haven. Here's what's happening and how it changes the calculus for these investments.
One way to gauge how enthusiastic investors are about an asset is to measure the inflows of money to exchange-traded funds (ETFs) that hold the asset. If people are eager to hold something like a cryptocurrency or a commodity, they'll allocate their capital to financial vehicles that allow them to hold that asset by proxy if anything might prevent them from holding it directly. For both gold and Bitcoin, such scenarios exist, so inflows to ETFs are a valid way to see what's in demand.
