Bitcoin vs gold debate with Contrarian Capitalist

Is bitcoin or gold a better investment?

Uranium investor and

The Contrarian Capitalist

have teamed up in this post.

Uranium Investor wrote the 8 reasons why the BTC price can go up.

The Contrarian Capitalist

played devil’s advocate and wrote the 8 reasons why the BTC price can go down.

There is a comparison to gold mentioned throughout this article. To be clear, we are both bullish on BTC in the long run, but my personal preference is gold over BTC whereas Uranium Investor’s stance is vice-versa.

We are also NOT Independent Financial Advisors (IFA’s), so please do not take any of this as investment advice.

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8 Reasons why the BTC price can go higher (written by Uranium Investor)

1) - Bitcoin has lower market cap than gold despite having similar but better properties than gold. Bitcoin market cap should reach golds market cap. Giving it over 13x returns.

2) - Bitcoin is better because it allows digital transactions.

3) - Bitcoin supply is capped (21 million coins) whereas gold's is not.

4) - Bitcoin can be used for other purposes gold cannot be used for (will explain).

5) - Several demand tailwinds for bitcoin such as ETF's, bitcoin yield, bitcoin banks, SBR's, reflexivity with $MSTR etc.

6) - More censorship resistant + no risk of fools’ gold.

7) - MPT suggests bitcoin should be accepted as part of a portfolio especially all-weather portfolios.

8) - Convertibles and preferereds allow low risk investors to get access to bitcoin increasing the price.

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8 Reasons why the BTC price can go lower (written by The Contrarian Capitalist)

1) - Governments could look to impose stricter regulations or possibly introduce outright bans on BTC.

2) - As global economies stabilise after the coming recession, investors may shift funds from Bitcoin to traditional investments, thus reducing demand.

3) - Rising popularity of alternative cryptocurrencies/altcoins with possibly better features or use cases could divert investment away from Bitcoin.

4) - Negative news, such as hacks, scams, or high-profile criticisms, could spark fear-driven sell-offs.

5) - Whales (large holders) selling off significant amounts of Bitcoin could trigger panic selling and price drops.

6) - Rising interest rates or a stronger U.S. dollar could make Bitcoin less attractive as a store of value, leading to price declines.

7) - Increased scrutiny over Bitcoin mining’s energy consumption could lead to reduced institutional adoption and negative sentiment.

8) - A broader financial market crash or liquidity shortage could force investors to sell Bitcoin to cover losses elsewhere, driving prices down.

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BTC v Gold?

This is almost the million-dollar question at the moment.

BTC certainly has a lot of qualities and has a role to play in the future of finance and decentralisation.

The difference between BTC and Gold is that the latter has much more history and so we know how this is going to play out moving forwards.

Pardon the pun but BTC still has the element of the unknown about it at the moment with regards to its future outlook.

Government’s devaluing their fiat currencies has led (and will continue to lead) to the price of gold going up. The simple argument here is that it is not the price of gold that goes up, but in fact is the value of the currency going down.

When monetary systems change and currencies get debased/devalued, then this is very good for gold. There is a reason why there is a popular phrase ‘as good as gold’.

Because you are reading this then the chances are that you also have a keen interest in being decentralised, wanting to get out of the tyranny of the world and want to also protect both yourself and your family.

It is for these reasons why it would be prudent to have an allocation to BTC (and physical metals) moving forwards. What that % allocation is would be up to you. BTC very likely has a role to play in the future but what exactly that role is and how it is carved out, remains to be seen.