Bitcoin versus Gold

Sometimes fashions attract people.

Everyone knows bonds, real estate, stocks, and of course gold, as a safe haven. But have you seen how bitcoin rises while gold almost doesn't?

The fashions, the news and the fact that it can become a reference asset-class is making everyone start looking at bitcoin.

In addition, we already have bitcoin cash ETFs. That's why bitcoin "rolls more."

Fiat money is Inflation

Inflation is an economic term that refers to the widespread and sustained increase in the price level of goods and services in an economy over a specific period of time. This phenomenon is usually measured by indicators such as the Consumer Price Index (CPI), which tracks changes in the prices of a basket of goods and services representative of typical consumer spending. When the inflation rate is high, the purchasing power of the currency decreases, meaning that the same amount of money buys fewer goods and services.

Inflation can be caused by a variety of factors, such as increased demand for goods and services, higher production costs, growth in the money supply, external shocks such as increases in energy prices, or natural events. , among others. Although a moderate rate of inflation can be beneficial in stimulating spending and economic growth, hyperinflation, which is extremely high and out of control inflation, can have devastating effects on an economy, including loss of confidence in the currency and decrease in the value of savings.

Bitcoin money is des-inflaction

Refers to a decrease in the rate of inflation, that is, when the rate of increase in the general price level decreases, although prices continue to rise, just at a slower rate. It is important to note that disinflation does not mean that prices fall, but rather that the rate at which prices increase is reduced.

Disinflation can result from various causes, such as restrictive monetary policies implemented by a central bank to control inflation, a decrease in commodity costs, reduced demand pressure due to weaker economic conditions, among other factors.

Unlike deflation, where prices decrease across the board, disinflation implies a slowdown in the rate of price growth. Although it can be seen as positive in terms of price stability, prolonged disinflation can indicate underlying economic problems, such as weak demand or sluggish economic activity. Central banks often seek to keep disinflation within a target range to balance economic growth and price stability.

But also and speaking of bitcoin we could add a few words:

Bitcoin reduces its money supply by half every 4 years, so if we cut the supply, reducing it even if demand does not increase... the price would tend to rise. And if the offer also increased, reader, think what could happen to the price.

Bitcoin ETF

An ETF, or Exchange-Traded Fund, is a type of investment fund that combines features of both mutual funds and individual stocks. It's essentially a basket of assets—such as stocks, bonds, commodities, or a mixture of these—designed to track the performance of a particular index, sector, commodity, or asset class (like bitcoin from now on?).

ETFs investors can buy and sell them throughout the trading day at market prices. This differs from traditional mutual funds, which are typically bought or sold at the end of the trading day at the fund's net asset value (NAV).

One of the key advantages of ETFs is their diversification potential. By owning shares in an ETF, investors gain exposure to a wide range of assets within a single investment, reducing the risk associated with holding individual stocks or bonds, and from now, bitcoin too. Additionally, ETFs often have lower expense ratios compared to mutual funds, making them cost-effective investment options for many investors.

ETFs also offer flexibility in terms of trading strategies. Investors can use ETFs to gain exposure at bitcoin.

Overall, ETFs have become increasingly popular investment vehicles due to their liquidity, diversification, transparency, and cost-effectiveness. They provide investors with a convenient way to access a wide array of investment opportunities while offering the flexibility to tailor their portfolios to meet their specific investment objectives.

With bitcoin ETFs, where behind them are BlackRock, Vanguard, Invesco, Fidelity, Citadel, Valkyrie... and many more, what do you think can happen with bitcoin?

The nice subsequent creativity is not a recommendation to purchase any crypto asset or investment product.

Returning to the title of bitcoin versus gold, you will have read little about gold, but now, gold could be bitcoin.

This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell any asset or crypto asset. Please do your own research (DYOR) or contact your trusted financial advisor.

Jesús Sánchez-Bermejo

BELOBABA