Bitcoin (BTC) is often considered an inflation hedge and recent market behavior seems to support this belief. ARK Invest CEO, Cathie Wood, said that Bitcoin (BTC) and Ethereum (ETH) are behaving like “risk-off” assets amid financial uncertainty. According to Wood, BTC’s resilience during the banking crisis is one of the most impressive indicators.
Wood believed that Bitcoin (BTC) and Ethereum (ETH) will “disrupt the traditional world order.” Both assets can be considered like gold because investors are using them as “flight to safety” assets, she added. According to Wood, cryptocurrencies will eventually be raised during elections. As the sector becomes more widely accepted, the public would want to see regulatory measures by the US government. However, not everyone is sold on the idea that BTC and ETH behave like gold.
Bitcoin and Ethereum “poor alternative” to gold?
American billionaire, Ray Dalio, however, does not share Wood’s sentiment. Dalio feels Bitcoin (BTC) “is neither an effective store hold of wealth nor a medium of exchange.” BTC has volatility, which Dalio mentioned, and has no relation to anything. Because of this reason, Dalio says that BTC is a “poor alternative to gold.” Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund by assets under management.
Dalio has previously called Bitcoin “one hell of an invention.” However, the American billionaire seems to have changed his stance on the original cryptocurrency.
Regardless of opinions, one cannot thwart Bitcoin and Ethereum’s performance, compared to traditional assets. BTC has made gains of over 80% since January 2023, eclipsing the S&P 500’s 7.7% growth so far in 2023. Although BTC has its fair share of problems, there is no denying its position as the best-performing asset, amid the financial challenges that the world is going through.
At press time, Bitcoin (BTC) was trading at $29,976.74, down 1.3% in 24 hours, while Ethereum was trading at $2,100.13, with no change in the 24-hour charts.