Sharing with Kitco, Head of Commodity and Cryptocurrency Index Products at Bloomberg Index Services - Jigna Gibb said that inflation has become a huge risk on a global scale and this is when alternative solutions appear.

“This is when you need assets to replace you to work,” Ms. Jigna Gibb emphasized.

As inflation continues to erode the purchasing power of global currencies, both gold and Bitcoin have become important alternative assets and portfolio diversifiers, according to Jigna Gibb.

In fact, gold has had a stellar rally since the start of the year, gaining more than 15.2%, much higher than the gains of Bitcoin and several prominent cryptocurrencies.

However, Bitcoin remains an increasingly important asset for investors, with the digital currency continuing its strong uptrend since November 2022, from $16,400/BTC to its current $88,000/BTC.

Recently, many organizations have made positive forecasts about many types of assets, including gold, Bitcoin, some digital currencies...

Bloomberg has also just launched the Bloomberg Bitcoin Index, alongside the Bloomberg Dollar and Bloomberg Gold.

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Gold, Bitcoin and real estate are popular assets in the past year. Photo: davidveksler

Several major banking and financial groups in the world predict that the price of gold will reach 3,100-3,200 USD/ounce this year and could reach 4,000 USD/ounce if geopolitical instability increases as predicted by Société Générale.

Gold has long been considered a “safe haven” during economic crises and/or global instability. The value of gold is not dependent on any government or organization, making it an ideal asset for preserving capital. However, gold does not actually “work,” it is not an active “money-making machine.”

As for Bitcoin, it is still under pressure to correct after reaching a peak of $109,000/BTC in January. However, the demand for this digital currency is still very high. Investors are disappointed with the support from President Donald Trump, which is not as strong as he declared during the election campaign.

In early March, Mr. Trump signed an executive order creating a digital currency reserve. However, the proposed reserve would only include Bitcoin that the U.S. government already holds and no new money would be spent.

However, in the medium and long term, Jigna Gibb believes that both gold and Bitcoin are still well supported in an uncertain world.

What makes gold and Bitcoin attractive as alternative assets is the liquidity of the broader market, she added. As the stock market continues to struggle in correction territory, having liquid assets is important.

Bitcoin is the first and most famous cryptocurrency. It also changed the way we think about assets in the 21st century. Created in 2009, Bitcoin is not controlled by any central bank and operates on decentralized blockchain technology. Its value has skyrocketed from a few cents to hundreds of thousands of dollars, leading many to consider it “digital gold” - both a store of value and a huge investment opportunity.

Bitcoin's strength lies in its growth potential. If you invest in Bitcoin early and hold on, the returns can be far greater than gold or real estate.

In addition, with the development of decentralized finance (DeFi), Bitcoin can be used to provide many other services such as lending on the blockchain platform, creating passive income that gold cannot do. However, the risks are also very high: Bitcoin prices fluctuate strongly and the risk of cyber attacks...

Not only gold, the prices of many other commodities have also increased sharply in the context of high inflation, the downward trend of the USD and the impact of trade wars between countries.

In Asia, real estate tends to increase sharply in the context of money being pumped out to support economic development. This is also an asset class that can explode at any time. Usually every few years, real estate prices reach a new high, making it impossible for many low-income, middle-income, and even high-income people to buy real estate.

When owning a real estate such as a house, apartment or land, the owner can rent it out to receive regular monthly income. The value of real estate also tends to increase over time.

The world is in turmoil, gold prices, stocks, Bitcoin plummet after signals from the Fed . The world's financial markets are in turmoil. Gold prices, US stocks, Bitcoin plummeted after the Fed became more cautious about the US economy when Donald Trump took office.

Source: https://vietnamnet.vn/vang-bitcoin-va-bat-dong-san-dau-moi-la-co-may-kiem-tien-2385183.html