Jan 27, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

The Bank of Japan (BOJ) raised its key policy rate to 0.5% on Friday, marking the highest level since 2008 and reflecting a more optimistic outlook on inflation. This decision, anticipated by the market, follows a two-day meeting led by BOJ Governor Kazuo Ueda, who noted the need to assess wage trends and the impact of Donald Trump's return to the U.S. White House.

The BOJ's statement highlighted stable global financial markets, suggesting it has carefully monitored reactions to the new U.S. administration. Ueda emphasized that future rate adjustments would depend upon economic conditions, indicating no predetermined hike pace. Following the announcement, the yen strengthened against the dollar, and yields on 10-year Japanese government bonds rose.

Market analysts expect further rate increases, possibly by May 2025, contingent on wage pressures. This latest hike is Ueda's third in less than a year, contrasting sharply with the surprise increase in July 2024 that spurred a global market downturn.

Economists had largely predicted this move, with inflation projections now above 2% for the first time. Ueda’s comments on the neutral rate suggest that the BOJ might not align with economists’ expectations of a 1% endpoint, as he believes significant distance remains to reach neutral status.

This rate increase positions Japan uniquely among major central banks, as others, such as the Federal Reserve and ECB, are lowering rates. It allows Japan to respond more traditionally to future economic events. The decision came amid a favorable political climate, with Prime Minister Shigeru Ishiba's cabinet supporting the hike, unlike past cycles that faced strong opposition. Ueda’s confidence, however, remains cautious, due to uncertainties around U.S. economic policy.

Weekly Crypto Highlight — Trump’s Executive Orders to Support Crypto

U.S. president Donald Trump has taken a significant step in supporting the digital asset sector by signing an executive order that establishes a working group to advise the White House on cryptocurrency policy. This group includes key agencies, such as the Treasury, Justice Department, SEC and CFTC, and aims to submit recommendations for a regulatory framework within six months.

The order emphasizes the importance of the crypto industry for U.S. innovation and economic development, while encouraging regulated dollar-backed stablecoins. However, it expresses concerns about central bank digital currencies (CBDCs), citing potential risks to the financial system and privacy.

Industry leaders view this executive action as a historic win, with Matt Hougan of Bitwise Asset Management stating it establishes crypto as a national priority. During the signing, Trump highlighted the potential economic benefits of these actions and expressed a desire for America to lead in the crypto space.

This order aligns with Trump’s campaign promises, which included streamlining regulations and appointing crypto-friendly officials. He has made some strides in this area, including the pardon of Ross Ulbricht, the creator of Silk Road, and the appointment of agency heads supportive of the crypto industry.

In a related move, the SEC repealed a guideline that had restricted banks from offering custody services for digital assets, which the industry has criticized as being limiting. Following these developments, Bitcoin rose 1.5%, reflecting positive market sentiment.

Trump's evolving stance on digital assets, from skepticism to advocacy, coincides with increased political engagement from the crypto sector. His administration's actions suggest a commitment to fostering a favorable regulatory environment for digital currencies, potentially setting the stage for significant growth in the industry.

Advanced

27 Jan Weekly Newsletter.png

Weekly Institutional Insights: Trump’s Executive Orders Might Further Boost Crypto

The cryptocurrency market experienced significant movement following Donald Trump’s inauguration, which traders had closely anticipated. 

The cryptocurrency market experienced significant movement following Donald Trump’s inauguration, which traders had closely anticipated. His promise to establish the United States as the "crypto capital of the planet" and create a strategic Bitcoin reserve resonated positively with market participants. Bitcoin’s market capitalization surged, reaching an all-time high of $109,300 just before the inauguration on Jan 20, 2025. This surge illustrated the optimistic crypto market sentiment surrounding Trump's administration and its potential influence on cryptocurrency regulations.

However, this rally was tempered by a common market phenomenon known as "buy the rumor, sell the news." Following the inauguration, many traders who had invested in anticipation of the event sold their holdings, leading to a price decline. This reaction highlights the volatile nature of cryptocurrency markets, as excitement can quickly turn into profit-taking.

World Liberty Financial and Ethereum Accumulation

In related news, World Liberty Financial (WLF), a cryptocurrency venture associated with Trump and his family, made headlines by significantly increasing its Ethereum (ETH) holdings. From Jan 17–19, 2025, WLF acquired 55,247 ETH, bringing its total to 56,332 ETH, valued at approximately $181.6 million at the time of the report. This acquisition drew attention due to its substantial scale and timing, occurring just days before the inauguration.

WLF's wallet also held a diverse array of assets, including Wrapped Bitcoin (WBTC) and USD Coin (USDC), indicating a strategic investment approach. The rise in attention to WLF's holdings reflects a growing interest in institutional investment in cryptocurrencies, especially in the context of a pro-crypto administration. While Ethereum's price action has been somewhat disappointing compared to that of other altcoins, the accumulation strategy by WLF suggests confidence in Ethereum's long-term potential.

The report also highlights Solana’s remarkable performance, as SOL reached an all-time high of $295 on January 18, 2025. This surge was largely driven by the launch of an official TRUMP meme coin on the Solana network, which generated significant investor interest. The TRUMP meme coin achieved a market cap of $14.92 billion within two days of launching, illustrating the power of meme culture in driving market activity.

The correlation between the TRUMP meme coin's popularity and Solana's price rise indicates how new products can influence established cryptocurrencies. Despite the initial hype surrounding the meme coin, Solana has shown resilience, bouncing back above $258 after the inauguration, suggesting a robust underlying demand.

Looking toward future developments, the report discusses the recent filings for cryptocurrency exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). These filings include proposals for Bitcoin (BTC), Ethereum (ETH) and various meme coins, signaling a potential shift toward mainstream adoption of cryptocurrency-based financial products. The anticipated pro-crypto policies under Trump’s administration could play a crucial role in shaping the regulatory framework for these ETFs.

The SEC’s response to these applications will be a significant indicator of how institutional investment in cryptocurrencies may evolve. Should these ETFs gain approval, it could lead to increased demand and price volatility, particularly as traders react to the outcomes of these regulatory decisions.

Intro to Santiment.png

Bybit x Santiment: ETH Faces Pressures as SOL, XRP, Meme Shine

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

Trump's inauguration on Jan 20, 2025 was preceded by the launch of two meme coins from the Trump family, TRUMP and MELANIA, which quickly garnered billions in market capitalization. Speculation about a strategic Bitcoin reserve being included in the executive orders signed on the first day of his administration led to a significant bullish shift in derivatives market positioning. This shift resulted in an inversion of the term structure of volatility, increased funding rates on long positions and a tilt in short-tenor volatility smiles toward calls. However, when the anticipated bullish announcements didn’t materialize, implied volatility levels decreased, even as realized volatility increased. Despite this, the bullish skew toward out-of-the-money (OTM) calls persisted.

In the perpetual markets, funding rates remained consistently high across almost all assets, continuing beyond the inauguration event. In the options market, realized volatility surged to post-election highs, even as implied volatility levels fell due to an overestimation of the significance of inauguration day for crypto. Overall, positioning across all tenors remained bullishly tilted.

Please check out the report’s highlights.

During the inauguration weekend, perpetual swap trade volumes hit their highest levels in over a month as traders positioned for expected crypto-friendly executive orders. Notably, SOLUSDT perpetuals experienced a significant surge in activity, reaching new all-time highs and a spike in realized volatility. Trump's launch of the TRUMP meme coin on Solana DEXs allowed Solana’s network to surpass competitors in fee generation, highlighting the symbolic choice of a sitting U.S. president to launch on Solana instead of Ethereum.

Perpetual swap funding rates saw minimal repricing despite the lack of significant announcements on inauguration day, remaining at neutral-to-bullish levels across all coins. Open interest data indicated no major changes in positions, even amidst spot price volatility. Consequently, while options markets adjusted short-term expectations, sentiment in the derivatives market viewed the lackluster inauguration day as just one of many opportunities for future positive news in the industry.

Speculation that the incoming president would announce a strategic Bitcoin reserve in his inaugural speech led to a buildup of short-tenor options positions just before the event. This resulted in a significant increase in call buying and the strongest inversion of at-the-money term structure since the Nov 5, 2024 election. While the extreme pricing of front-end volatility has diminished, the strong skew toward OTM calls remains, reflecting a continued preference for upside exposure as Trump prepares to sign executive orders.

block-scholes-x-bybit-report.jpeg

Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 22, 2025): Sentiment Cools While Remaining Bullish Following Trump’s First Day

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Learn more here.

If you keep up with financial news, it can often feel like you’re hearing a story about a self-made crypto millionaire every other day. However, smart investors know that the reality is a little more nuanced. The crypto market comes with high rewards, but it also has high risks. To be successful, you need to be willing to 

 and make wise choices. This guide will explore one of the most basic things you’ll need to decide on before choosing to jump into the world of crypto — how much you should invest in crypto.

Figuring out how much to invest in crypto can be even more important than deciding which specific coins you want to purchase. Not only does the amount you invest in crypto impact your other finances, but it also determines which strategies you can afford to use.

The simple answer to how much you should invest in cryptocurrency is based on your net worth. Someone with millions of dollars can easily risk a lot more than, for instance, a college student without any savings. Traditional investment advice from financial expert Douglas Feldman 

 people shouldn't invest more than 1% to 5% of their total net worth in cryptocurrency. However, some crypto enthusiasts, such as

 be wise to invest up to 10% of your income in cryptocurrency.

Factors to Consider When Deciding How Much to Invest in Crypto

There's a lot of variation in guidelines for how much to invest in crypto. To find the right amount to invest for your specific situation, you'll need to stop and consider these essential factors.

One of the most important factors in determining how much to invest in crypto is the level of risk you’re willing to consider, or your risk appetite. If you have a high risk tolerance, you can invest more. Risk tolerance is partially a matter of personal preference. Some people are naturally cautious, while others are more comfortable making risky moves. However, it’s also wise to factor in your age. A high risk tolerance can work well when you're young because gradual market growth over the years will help balance losses. However, if you're older and closer to retirement age, a lower risk tolerance is advisable.

When planning to invest in crypto, it's a good idea to consider the best-case scenario as well as the worst. Ask yourself: What will happen if my crypto assets suddenly skyrocket in price and I make thousands of dollars overnight? If you're the type of person who would throw in more money or keep holding onto your crypto until the bubble bursts, it might be smart to reduce the portion of your money that you invest in crypto. The flashy profits associated with crypto can lead to overly emotional decisions that can cause problems for certain types of crypto investors.

, the types of coins you're holding make a big difference. Not all types of crypto have the same level of risk. If you intend to go for a risky investment portfolio with nothing but 

, you probably shouldn't take all your assets and invest them in crypto. However, if you intend to invest in a broad range of reliable coins, especially 

, allocating more of your assets toward crypto is a reasonable choice.

Things change fast in the crypto world, so the same advice doesn't always work in different situations. Any time you’re going to invest in crypto, you need to take a look at crypto market conditions. In a 

, prices are consistently high, so you may want to invest less. Meanwhile, in a 

, prices are low, and you can often get big returns by putting extra into crypto investing.

Your liquidity refers to the amount of easily accessible cash you have at hand. Crypto markets are fairly liquid, since you can remove your funds at any time. However, since crypto is a volatile asset class, trying to remove your funds during a bear market can lead to considerable losses. Before putting large sums into crypto investing, think about when you'll need liquid cash. For instance, if you're going to need a large lump sum for a house deposit or another big purchase soon, you need to invest less money in crypto.

Keep in mind that a lot of the recommendations to invest between 1% to 10% of your money in crypto are based on income. However, the reality is that different people have different budgets. Some may need almost all of their income for things like food and housing, so it's not smart to take all your money and invest in crypto. However, others who have more disposable income left over after managing other budgetary needs can invest in crypto more often.

The cryptocurrency market as a whole does follow certain trends, but crypto investments always fare better if you actually understand projects before you invest. It's a poor decision to put a large portion of your assets into obscure crypto you know nothing about. Informed investors only put significant investment into specific cryptocurrencies if they take the time to 

, understand its real-world utility, explore its pricing history and see how well it performs on crypto exchanges.

What Is a Good Allocation for a Well-Balanced Crypto Portfolio?

Once you figure out how much money you want to invest in crypto altogether, you need to consider how much money to put into each specific crypto. It's important to have a diversified portfolio, so a single coin running into issues won't tank your entire crypto investment portfolio. There are a lot of different ways to invest in crypto.

The simplest investment advice, as suggested by

, is simply to put 60% of your money into Bitcoin and 40% into Ethereum. That's a decent choice if you know nothing about crypto assets but still want to invest in crypto. However, if you're willing to research individual coins and pick your favorites, try this asset spread:

If you are open to some speculative exposure, consider allocating a small percentage (2 - 3%) to emerging sectors like 

Compared to some other investments, such as bonds, cryptocurrency is considered risky. The 2020 - 2024 chart below, detailing Bitcoin and S&P's weekly returns, reveals the relatively drastic peaks and troughs of Bitcoin in comparison to S&P 500. Notably, Bitcoin recorded a weekly drop of over 40% and nearly 30% rise in 2020, thugh its volatility has declined over the years. In contrast, S&P 500's gains and losses rarely exceeded 10% throughout the entire period.

Despite Bitcoin's drop in volatility, it is still considered relatively risky to invest in crypto because of the market’s significant price fluctuations and the proliferation of 

s. Additionally, there are countless examples of people who invest in crypto, jumping onto trends and losing their money when prices on the crypto exchange drop. One

 illustrates these dangers: he became interested in crypto during the pandemic and quickly got hooked upon seeing his portfolio values rise. He invested $50,000 into crypto, and eventually built an impressive portfolio worth $300,000. Following a 

, he had only $5,000 left in his account.

Furthermore, crypto markets are still not fully understood by the public, and are less regulated than traditional investments, so it's easier for malicious actors to take advantage of naive investors. For example, crypto-lending company 

 promised to store customers' assets, but when the company went 

, many users found that the company refused to return their invested funds. A similar issue arose when 

, and investors could no longer withdraw funds from their accounts.

Despite its risk, cryptocurrency fills an excellent niche in the financial world. When you invest in crypto, it can ensure your portfolio is diversified and insulate you from stock market crashes and other issues with traditional investments. Deciding to invest in crypto is also a valid option when you want to work with some higher-risk investments. Even beginning traders can find it useful to place a small portion of their investment funds into some reliable cryptos.

Furthermore, cryptocurrency allows people with tech expertise to make highly informed decisions. Finding your niche is always a useful investment strategy. Those who don't keep up with manufacturers and foreign currency exchange rates might find that they can specialize by choosing to invest in crypto. If you enjoy learning about the latest tech news and following online memes, crypto investments can be a great way to turn your knowledge into profits.

However, even though it often works well to invest in crypto, you still need to exercise some caution before working with crypto exchanges. If you want to invest in crypto, it's essential to follow the classic rule of, "Only invest the money you can afford to lose." Those who take out loans to buy 

 or throw their entire retirement account into crypto can end up losing it all if the markets take a turn for the worse. Like any other volatile asset class, crypto needs to be approached with some common sense.

Deciding how much money to invest in crypto is an essential part of your investment strategy. By considering things like risk tolerance and liquidity, you can create an investment portfolio that addresses your unique needs. When you have the right amount of money invested in crypto, you have the potential to make impressive profits without risking all your savings.

Beginner

how much to invest in crypto, how much to invest in bitcoin

how much to invest in crypto, how much to invest in bitcoin.png

How Much Should You Invest in Crypto? 7 Factors to Consider

Investing

Trading

Bitcoin

It's wise to invest in an asset that hedges against inflation. Find out which is the better store of value as we compare Bitcoin vs. gold.

Since it was created in 2009 by the pseudonymous 

, Bitcoin has skyrocketed in price, garnering worldwide attention. Since April 2021, Bitcoin’s 

 has crossed the $1 trillion mark. This has resulted in many investors turning to the popular cryptocurrency as a store of value when comparing Bitcoin vs. gold.

Traditionally, investors and commodity traders have stored their wealth either in property, stocks, bonds or gold. Gold has generally been a safe hedge against rising prices over extended periods, but digital currencies are a new asset increasingly viewed as a store of value, in addition to being a means of day-to-day transactions. Bitcoin has accordingly gained a reputation as “digital gold.” 

Let’s look at the two most prominent options today as we compare Bitcoin vs. gold, and how they stack up against each other when it comes to preserving their value — and your wealth — over the long term.

 is an asset that can be reposited and retrieved without losing its value over time.

Using this definition, it’s evident that fiat money is a poor store of value. Cash is helpful as a day-to-day medium of exchange and a way to keep short-term liquidity, but it doesn’t hold its value well over time. 

There have been over 50 recorded episodes of 

 in different monetary systems worldwide. Hyperinflation occurs when money loses value at a rapid rate, about 50% per month. It’s characterized by a sharp increase in the cost of goods and services and a corresponding loss of purchasing power. While hyperinflation is rare in developed countries, inflation itself is quite common. 

Inflation is a standard tool used by governments around the world to control the supply of money. Governments slightly devalue their currencies each year as a way of incentivizing people to increase spending or investment, in the hope this will stimulate economic growth by creating more jobs. 

This means that your money loses value over time, so storing your wealth in an asset that maintains value is the only way to keep up. That’s why people invest in stocks, bonds, real estate and other assets that are likely to appreciate or retain their value over time. 

However, even though they’re preferable to cash, these investment vehicles pass through boom and bust cycles. To make matters worse, their price movements are correlated — so that market conditions which affect one are likely to affect others. 

Therefore, an asset that is immune to market vagaries is essential. This is where the Bitcoin vs. gold argument comes in. For thousands of years, gold has been the world’s primary store of value. It has outlived the monetary systems of countless empires and city states, many of which no longer exist.

Investors typically switch to assets like gold and Bitcoin in times of market turbulence since they don’t move with the rest of the market. In fact, their value usually grows in adverse market conditions as investors move their funds over in bulk. When measuring Bitcoin vs. gold, investors consider them “safe havens” because of its stability. Even if investors don’t make significant gains, they’re confident of retaining the value of their wealth.

Before even comparing Bitcoin vs. gold, it’s important to understand why gold holds so much appeal among long time investors. Money has been used as a medium of exchange since human civilization realized the limitations of the barter system. Various materials have been used as currencies, including bones, sticks, 

, livestock, metal and paper. Only gold has maintained its value and appeal over the ages. The first signs of gold coins in history go as far back as 500 B.C.

Humans have valued gold because of its unique properties and beautiful appearance. They see the precious metal as a means of passing on and preserving their wealth from generation to generation. Since gold is an inert metal, it doesn’t oxidize (rust) or react with other elements. Its versatility also means gold can be melted and worked into coins.

Throughout modern history, many countries have adopted the gold standard monetary system, with the U.S. following suit in 1879. The term “gold standard” refers to a monetary system in which the value of paper money is backed by gold that’s stored in the government’s possession. 

While this system is effective in fighting inflation and deflation, it limits the ability of governments to freely print their own currencies. This has become an issue for governments attempting to fund wars. The U.S. started moving away from the gold standard in 1933. In 1971, in order to avoid an inevitable run on gold reserves, the Nixon administration halted convertibility, meaning that other countries could no longer redeem their dollars for gold. By 1973, the government scrapped the gold standard altogether. 

Eventually, the U.S. dollar became the world reserve currency, and many global currencies pegged their exchange rates to it, rather than gold. 

Why is gold held in such high regard as a store of value? Throughout history, gold has retained its value as insurance against uncertain times. Characteristics that enhance its tremendous value include durability, scarcity, portability, convertibility — and emotional appeal since shiny objects tend to be more appealing. 

Gold also has practical uses. It’s been used for making jewelry since antiquity and, more recently, manufacturing electronic components. The supply is low, steady and predictable, since gold must be mined from the ground and processed. Therefore, gold has little correlation to other asset classes, such as stocks and currencies. 

Investors who are wary of stock market swings have found comfort in gold. Precious metals have been helpful as a hedge in market corrections. Even if its value doesn’t rise, it tends to remain static while other assets decline. These factors contribute to the long-standing popularity of gold as a solid safe-haven asset. 

Now, Bitcoin is threatening to steal gold’s shine as the premium store of value. But how does this digital asset measure up to the original store of value in our comparison of Bitcoin vs. gold?

Unlike gold, which is used primarily to make jewelry, coins and some electronic components, 

 doesn’t have industrial uses per se. However, it can be accepted as a means of exchange. 

Bitcoin is inherently a store of value — because it’s durable and scarce. The overall supply of Bitcoin is limited to 21 million, and there will never be more than that amount. 

Also, Bitcoin is a decentralized digital asset that operates without being controlled by central banks or governments, relying on a global network of nodes and miners who make this possible. This gives Bitcoin users some level of privacy and increases its security. An ideal store of value should function as a means of exchange so that it can be converted as needed. Bitcoin can be exchanged because it’s fungible, portable, divisible and widely adopted.

Now that both assets have been discussed let’s compare Bitcoin vs. gold side by side.

It’s tough to avoid the comparisons between Bitcoin and gold as their similarities are striking. They both make a good store of value and a safe haven in a sea of market turbulence. Here, we compare Bitcoin vs. gold by examining the factors that give them their value.

The primary characteristic of a good store of value when measuring Bitcoin vs. gold is scarcity. If an asset is easy to obtain or simply abundant, then it’s easy to increase its amount. However, as a result, the price plummets, making it a poor store of value. On the other hand, when supply of an asset is limited, increasing demand increases the asset’s price, retaining and growing its value.

Scarcity is one of gold’s key properties, giving it an edge over other metals and materials as a store of value. It’s relatively rare, expensive, and labor-intensive to mine and process. Accordingly, it isn’t easy to increase the supply of gold. So when demand for gold rises, it isn’t easy to increase the supply and fill the market need. Compared to other metals such as silver and copper, which are more abundant and easier to mine, gold is rarer, which has made it the dominant store of value over the ages.

But you know what’s even scarcer than gold? Bitcoin. While gold is relatively scarce, Bitcoin is absolutely scarce. Only 21,000,000 Bitcoin will ever be in existence, and no new one will be mined after 2140. Even though gold has been mined for centuries, the earth still holds metal to be mined.

For scarcity, Bitcoin has a fixed supply, and so it’s a better store of value than gold.

Fungibility describes the quality of being mutually interchangeable and uniform, which is a characteristic of a good store of value. This quality facilitates exchange because fungibility means all equivalent units of the asset have equal value and can be exchanged across diverse markets and locations.

A Mercedes and a Jeep are both cars, but they cannot be directly exchanged because each vehicle has a set of distinct and unique features that affect its value. However, gold is generally fungible — an ounce of pure gold holds the same value as an ounce of pure gold anywhere. But in some cases, gold is non-fungible. 

Gold with impurities isn’t worth the same as pure gold. It’s not very straightforward for anyone to easily test gold purity, and there’s the added hassle of using the same measurement standards worldwide. 

On the other hand, in the Bitcoin vs. gold argument, Bitcoin is always fungible. One Bitcoin is the same as any other Bitcoin and, even more importantly, cannot be counterfeited. In summary, Bitcoin is more fungible than gold.

A store of value should be easy to split into smaller units for a more accurate transfer of value. This is where gold falters. Gold is a dense metal, so a small amount still represents a large amount of value. This makes it hard to transfer smaller units of value, even with small gold coins. 

This is why paper money became necessary: it made gold easier to divide into smaller, more exchangeable units. However, paper money no longer represents gold, so the divisibility problem with gold remains. Also, dividing gold requires physical effort — melting, weighing, assaying, and minting new coins.

Conversely, Bitcoin has no such problems. Bitcoin can literally be divided infinitely. A millionth of a Bitcoin is called a Satoshi. Therefore, regardless of how valuable Bitcoin becomes, it will still be possible to use it and buy a pint of your favorite lager. In this aspect of the divisibility of Bitcoin vs. gold, Bitcoin is the clear winner.

When considering Bitcoin vs. gold, one of the key considerations should be the store of value’s portability. Gold is a dense metal and heavy to carry around. Transporting a large amount is expensive, making it inconvenient for long-distance trade. Cross-border regulations concerning gold make it somewhat impractical for international trade.

Bitcoin, in contrast, has no portability issues. As a purely digital asset, Bitcoin, no matter the value, can be stored in a thumb-sized drive or even online, and accessed anywhere in the world with an internet connection.

Transferring Bitcoin is fast and inexpensive. You can safely move an enormous value of Bitcoin in minutes for less than a dollar. This ultimately makes Bitcoin infinitely more portable than gold.

Society must accept an asset for it to be a good store of value. This is important, because people tend to value things that have been considered valuable for a long time. Gold has been considered valuable since ancient times by virtually every human civilization, and thus has a great appeal as a store of value. Additionally, gold has practical applications, as it’s used in coinage, jewelry and electronics.

In this regard of comparing Bitcoin vs. gold, gold is far superior to Bitcoin. Bitcoin has been around for little more than a decade, and while it’s gained an impressive level of adoption in a short period, it’s still far behind gold. Many investors and the general public see Bitcoin as a niche that has yet to be fully understood.

 of around $11 trillion, whereas Bitcoin’s market cap is $500 million. Clearly, gold is more adopted globally than Bitcoin. However, Bitcoin is fast gaining popularity.

The idea of a decentralized currency that isn’t under anyone’s control doesn’t sit well with central banks and governments worldwide. This has led to unfavorable government policies regarding Bitcoin, ranging from strict regulation to outright bans in some places.

No such threat hovers over the legitimacy of gold, making it the clear winner in this aspect of the Bitcoin vs. gold debate.

With governments printing money and devaluing currencies, gold and Bitcoin are excellent hedges against runaway inflation rates. Gold has been in use for centuries, and is still a good store of value and a reliable safe-haven asset. However, Bitcoin is the new kid on the block, demonstrating improved scarcity, divisibility and transferability. This ultimately positions Bitcoin as the better store of value when comparing Bitcoin vs. gold.

Bitcoin vs. Gold: Which Is a Better Store of Value?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards