Is Investing in Gold Futures a Better Option Than Bitcoin Currently?
Exploring the comparative benefits of gold futures versus Bitcoin as investment options in the current economic climate.
Traders are optimistic about gold futures prices, as shown by the steepening of the GC00 curve, according to Correlation Economics.
Gold’s decline during the U.S.-China trade war earlier this year was not a retreat to safety but rather the result of a stronger dollar and a broad risk rally that lifted the S&P 500 by 15% from its lows.
“Gold actually has properties — you can use gold for all sorts of things. People value gold for the metal. Nobody values bitcoin for the bitcoin; they value it because they believe that they can exchange it for something else.” — Peter Schiff, Economist
So, what serves as a better hedge against inflation: Bitcoin or Gold? Neither proves truly effective against inflation.
In today’s landscape, a misunderstanding of inflation complicates the assessment of cryptocurrencies, gold, or stocks. Here’s what needs to be noted:
Crypto is NOT a Hedge Against Inflation
Bitcoin and Ethereum are not safeguards against inflation; they are bets against fiat debasement. Inflation transcends mere money printing; it occurs when supply chain disruptions happen, wars erupt, or demand exceeds production capacity.
Simply printing dollars by the Federal Reserve will not instantly inflate grocery prices. Instead, it injects liquidity into financial assets like stocks, cryptocurrencies, and housing.
Gold’s Value Over Time
Gold seems merely a complement to your investment portfolio rather than a primary asset, mainly justified by heightened fears of economic turmoil.
In a world of economic uncertainty dominated by Federal Reserve policies that can seem dictatorial, it is reassuring to have a value store resistant to debasement. This characteristic makes cryptocurrencies, in particular Bitcoin, more robust than ever—especially in the summer of 2025.
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Key Takeaways
- Traders favor gold futures with expectations of price increases as indicated by the steepening curve.
- In challenging economic times, cryptocurrencies like Bitcoin offer potential advantages, responding to inflationary pressures differently than traditional assets like gold.
