A third of the gold buyers surveyed sees Bitcoin as the better choice

A third of the gold buyers surveyed sees Bitcoin as the better choice

Approximately half of the gold buyers surveyed plans to acquire more of the asset, but a third of the respondents believe that Bitcoin is a practical alternative A survey from the blockchain-infrastructure platform Paxos.

The survey published on Wednesday collected answers from 1,000 adults in the USA, Great Britain, Singapore and Germany, which have bought some form of gold - ETFs, physical bars, gold coins or symbolized gold in the past two years. The answers were collected in mid -April.

The main motivation for those who say that they are planning to buy more gold is the concern for inflation that has achieved a 40-year high.

The other main motivations included stock market problems and concerns about geopolitical factors and the devaluation of the Fiat currency, according to the survey. In terms of the cryptom market, concerns ranked fifth in the reasons to buy more gold.

Since unpredictable geopolitical, global health and economic forces continue to shake the markets, the demand for the relative stability of gold investments will continue to increase, wrote Anoushka Rayner, growth manager for raw materials at Paxos, in a blog post on Wednesday.

"There is also a joker in the mix," added Rayner. "Bitcoin's popularity is expected to have an effect on the market, with 33 % of those surveyed say that 'Bitcoin is the new gold', and they plan to buy more of it instead of gold."

The survey comes because Bitcoin and the wider crypto market have experienced price declines in the past few weeks. Bitcoin, the price of which was just over $ 20,000 on Thursday morning, fell by more than 30 % compared to two weeks ago.

"I hear so often: 'Why is Bitcoin not protection of inflation?'," Said Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence. "Sorry, but Bitcoin is one of the most powerful assets in human history. If the Fed takes away the punch shell, you have to expect it to go down."

mcGlone alluded to the fact that the Federal Reserve raised the interest for 75 basis points last week, which has been the strongest rate increase since 1994. In March, the central bank also increased the key interest rate by a quarter percent point, the first increase since 2018.

The best protection against inflation this year was crude oil, McGlone told Blockworks. But he wrote A Twitter-post Thursday that crude oil "may have become a bit too hot within a continuing bear market", and stated that Bitcoin could exceed the raw material in the second half of the year.

The Bloomberg Intelligence strategist said that despite all the spoke about inflation, the greater risk is deflation-an environment in which he expects buyers of Bitcoin and gold to be cut off well.

"Most clever investors realize that they have to have some bitcoin in this bucket, or risk keeping an analog asset in a world that becomes digital," said McGlone.

A quarter of the Paxos interviewed bought gold for the first time in 2020 or later. Gold ETFs and physical gold bars are the preferred method to buy gold, since 29 % provides information that the asset has bought the asset in each of these formats.

The number of people investing in gold ETFs varies depending on the generation, since 60 % of people between the ages of 18 and 34 have invested in them, while 45 % of over 44-year-olds have chosen ETFs.

The SPDR Gold Trust (GLD) from State Street Global Advisors-the largest gold ETF with a fortune of $ 62 billion-has increased by about 1 % this year until June 17. A spot bitcoin ETF has not yet been approved in the United States, although the SEC will decide on Bitwise Asset Management and Grayscale investments within the next two weeks.

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The contribution "A third of the gold buyers surveyed see Bitcoin as a better choice" is not a financial advice.