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For the longest time, Bitcoin (BTC/USD) supporters have argued that the primary cryptocurrency can be used as a better store of value to gold, with Bitcoin even earning the term “digital gold.” However, Mike Novogratz, the CEO of Galaxy Digital, has said that this debate is unnecessary.
According to Novogratz, an investor can be bullish on both Bitcoin and gold, as the two assets can be used to hedge against a depreciating fiat currency.
Novogratz says it is possible to be bullish on both BTC & gold
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“Everything doesn’t have to come from a position of either or. The gold charts look good. You can be bullish on gold and BTC. Both are perceived as stores of value to protect against debasement of fiat. Gold underperformed for a while. BTC and crypto are in an adoption cycle,” Novogratz argued.
Novogratz issued this statement in response to an earlier remark made by the CEO of Euro Capital, Peter Schiff. Schiff was criticizing Dave Portnoy for saying that gold did not have value and that it was better to invest in Bitcoin despite the high risk.
Despite being a crypto investor, Novogratz has rooted for gold, arguing that it also made for a good investment. However, last year, Novogratz said that Bitcoin would continue taking up a share of gold’s market capitalization as the rate of global adoption continues.
The battle between Bitcoin and gold
The battle between Bitcoin and gold has been on for many years now. Some analysts have compared Bitcoin’s gain in value to gold’s gain over the past few years to argue that Bitcoin made for a better store of value. However, this argument has created animosity, with gold supporters saying that the yellow metal was not as volatile as Bitcoin.
Bitcoin’s adoption has grown significantly, and it has now found its way into institutions. In 2021, the director of Global Macro at Fidelity Investments, Jurrien Trimmer, said that Bitcoin had an advantage over gold because its supply was capped at 21 million coins, while gold’s total supply was not established.