Bitcoin's growing role as a 'digital gold'

Bitcoin and gold surged to record highs this week as investors hedged against weakening fiat currencies. Even traditional gold bulls are taking notice of bitcoin's growing role as a form of "digital gold."

Bitcoin digital currency. Photo: AFP/TTXVN

Paul Karger, co-founder and managing partner of Twin Focus, believes that everyone who thought bitcoin was nonsense over the past decade was wrong.

Bitcoin prices hovered below $122,000 on October 9, down from an all-time high of $125,000 reached on October 6. The world's largest digital currency has gained 31% year-to-date.

Mr. Karger still favors a 5% allocation to gold, with a smaller bitcoin holding in his clients' portfolios, but admits that the world's largest digital currency "has a place in a diversified portfolio."

Mr. Karger suggests restructuring the fixed income portion of a traditional portfolio to 60/40, with 60% in stocks and 40% in bonds. He recommends diversifying the portfolio away from long-term bonds and into short-term debt, real estate, digital assets, gold and commodities like copper and AI infrastructure.

Meanwhile, gold has been shining this year, with prices soaring to a record high above $4,060 an ounce. The precious metal eased slightly on Friday but is still on track for its best annual gain in more than four decades.

Mr. Karger said it is definitely worth owning gold, as it is a great store of value. For those who hold physical gold, he recommends investing in coins rather than bullion, which is harder to resell, although both can be stored safely.

Gold futures have risen in nine of the past 10 sessions, setting new record highs in 10 consecutive trading sessions, a phenomenal rally that has brought the price to a gain of about 55% year-to-date.

Source: https://baotintuc.vn/thi-truong-tien-te/bitcoin-gia-tang-vai-tro-cua-mot-loai-vang-ky-thuat-so-20251009184157656.htm