Investing.com – After losing more than 9.2% between its all-time high on October 30 and the November 14 low of $2541.5, the stock posted a strong rally last week, culminating in a peak at $2718 on Friday.
Interestingly, this rise in Gold occurred simultaneously with new all-time highs near $100,000 for , while the two assets instead displayed a strong inverse correlation in previous weeks.
Some would see this as an opportunity to relaunch the debate according to which Bitcoin could complement Gold, or even replace it, by offering a digital version. However, there are still many detractors of this view of things.
This is particularly the case of George Milling-Stanley, of State Street Global Advisors, who created the oldest gold ETF, the SPDR Gold Shares (GLD).
According to him, the rise in gold creates a false sense of security among investors, as cryptocurrencies do not offer the stability of gold.
“Bitcoin, plain and simple, is a yield play, and I think people have jumped on the yield plays,” the strategist said on a CNBC show last week.
Milling-Stanley believes investors who value gold's security qualities should reconsider investing in bitcoin, suggesting the crypto world is trying to manipulate them.
Referring to the process of creating new BTC, he also declared:
“That’s why they [les promoteurs du bitcoin] called it mining. There is no mining. This is a pure and simple computer operation”, “they called it mining because they wanted to look like gold – maybe take away some of the aura of gold”.
He acknowledges, however, that it is difficult to know how high the yellow metal can actually rise.
“I have no idea what's going to happen in the next 20 years, other than it's going to be a great ride,” Milling-Stanley said, conceding, however, that he “thinks gold will be well”.
Finally, it should be noted that although it is true that Bitcoin and Gold differ on many levels, governments around the world are giving it more and more credit, with some countries having even included BTC in their reserves.
If a major developed country does the same, expect most of the world's central banks to follow suit. And only then will the “Bitcoin Vs Gold” debate take on its full meaning…
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