The interest in Bitcoin and other cryptocurrencies have reached a an all time high in recent weeks as more businesses are looking into the new technology.
According to Morgan Stanley, cryptocurrencies like Bitcoin recent exponential rise is causing investors to claim that Bitcoin may be a better hedge against inflation than gold.
Bloomberg has reported that Morgan Stanley has been asking cryptocurrency questions after prices recently soared past $4,000 a Bitcoin. By comparison, the price in gold have been stagnant with prices approaching $1,300 an ounce
While Bitcoin and gold offer store of value, durable, portable, divisible and scarce, the bank says it’s too soon to call bitcoin a greater investment than the precious metal right now. While gold has been slowly marginalized by the rise of fiat currencies over the centuries, a lot of time and trust-building will be needed before it becomes clear whether bitcoin will also undermine demand for the metal, he said.
Tom Price, a London-based equity strategist is quoted saying:
“The popular view that this immature currency is superior to gold as a hedge against inflation/uncertainty, still needs to be tested.”