Key facts:
There would be no case for investing in bitcoin or gold if there were “solid” fiat currencies, he says.
He believes that bitcoin and gold are brothers and there is a clear distinction with the rest of the cryptocurrencies.
The price volatility of bitcoin (BTC) is what attracts some to invest in the cryptocurrency due to the possibility of generating high returns. Although others are concerned about this same feature because it exposes them to losing money quickly, so they prefer to stay away. However, there are specialists who estimate that it could become a risk-free investment over time.
In an interview published this July 7, Ronald-Peter Stoeferle, the director of the asset management company Incrementum, said: “If Bitcoin continues to settle, then prices are likely to rise in the next few years”. Right now, the cryptocurrency is trading at $20,400, according to the CriptoNoticias calculator.
Although he clarifies that this is not yet the case, he estimates that bitcoin could increasingly mature into a risk-free investment. It also warns that there are more than 19,000 cryptocurrencies on the market and 99% of them will disappear over time. “There is a clear distinction between bitcoin and the rest,” he maintains.
In fact, as an investment specialist, he believes that bitcoin and gold are “brothers in spirit”. From this perspective, he mentions that cryptocurrency has “stolen the show a bit” in the media from this millennial asset in recent years.
Notes that, despite the current bear market, it is still appropriate to call bitcoin “digital gold” as a hedge against inflation and recession. In other words, it continues to be outlined as a value receipt, which is why it sees similarities with gold, which has a history of 5,000 years.
Bitcoin and gold work as an investment because there are no “solid” fiat currencies, he says
“If we had solid fiat currencies, there would be no real investment case for Bitcoin or gold. But we are in a system that is anything but solid. In this sense, the case for investing in bitcoin and gold is gaining ground,” Stoeferle said.
It recognizes that there is a shortage in the two asset classes, which have a high ratio of existing supply to production. Thus, it indicates that Bitcoin is also getting stronger with each holding.
“Gold mainly serves to cover the already existing purchasing power. Gold is not there to get rich quick. On the other hand, you don’t get poor quickly with gold. Gold is a defensive and conservative asset. It does its job well and preserves purchasing power », he mentioned.
Under this view of the market, the company he runs, Incrementum, offers a fund that invests 75% in gold and 25% in Bitcoin. “The concept of combining two alternative currency asset classes in a single fund is appreciated by our investors,” he concluded.