Speaking to Kitco News, Stoeferle noted that the next phase of Bitcoin’s price growth is yet to begin. According to Stoeferle, Bitcoin price appreciation will be due to factors like the asset increasingly becoming a hedge against inflation. Notably, the debate on Bitcoin being a hedge against inflation was recently put to test after the asset’s price plunged around June by almost 50% from the April all-time high of almost $65,000. At the moment, inflation was soaring while Bitcoin corrected amid increasing regulatory scrutiny alongside the debate on the asset’s environmental impact.
‘No competition between gold and Bitcoin’
With proponents increasingly viewing Bitcoin as a replacement for gold, Stoeferle suggests that there is no competition between the two assets, especially from a portfolio perspective. He, however, acknowledged that despite being new, Bitcoin had attracted a lot of attention from the media. Stoeferle states that Bitcoin discussions are always controversial, considering that the asset is highly volatile like the general cryptocurrency market. Stoeferle opines that the price of gold influences investments into the precious metal. He notes that when prices surge, instruments such as gold ETFs record a surge in investments. He notes that gold is currently witnessing the slowed entry of investors compared to Bitcoin. Currently, gold is in search of a new record price above $2,000. Elsewhere, Bitcoin is attempting to move towards $50,000 after recording a flash price plunge last week. [coinbase]
