- Ruchir Sharma while speaking to CNN’s anchor Julia Chatterley feels that old investors are inclined towards the traditional form
- When quizzed about the gold vs crypto debate, Sharma said that gold is a speculative asset
- Analysts like Peter Schiff have always supported gold and predicted that it may reach even bigger heights
Morgan Stanley’s Chief Global Strategist, Ruchir Sharma feels there is a great mindset difference when it comes to investing in cryptocurrencies. Sharma, while speaking to CNN’s anchor Julia Chatterley feels that old investors are inclined towards the traditional form, i.e. gold, while the young millennials prefer Bitcoins.
The Indian investor and fund manager who has been with Morgan Stanley since 1996, explained it with the correlation of rising interest rates and tech stocks and risk assets. He predicted that there could be a rise in the interest rates and we would be able to see it as early as next year.
When quizzed about the gold vs crypto debate, Sharma said that gold is a speculative asset and it often does well when the interest rates are adjusted according to inflation. Having said that, it’s not a bad idea to have 5% or so of your portfolio. But Sharma feels, if the investor wants to be a bit more adventurous then one should search for Bitcoin and other cryptocurrencies. Many analysts feel that US elections could change the way we invest with potential collapse of the U.S. dollar, which could result in boosting up of the prices of gold and bitcoins.
Mixed reactions over Gold vs BTC debate
Analysts like Peter Schiff have always supported gold and predicted that it may reach even bigger heights. On the other hand, Bitcoin advocates claim that BTC will be the most effective hedge to cope up with the inflation.
The BTC advocates feel the cryptocurrency has a fixed supply unlike gold. Secondly, is portable which makes it a superior hedge as well as long term investment. But while Gold prices tend to remain more or less on the similar trends, the BTC, off late, has seen volatility, making it a difficult one to predict.
Currently, Bitcoin’s market value has been fluctuating in the $10200 and $10400 range. Despite seeing the high of $12000, the $10200 and $10400 range seems to be holding the fort and creating enough interest in the investors for considering it as a long-term approach.