Bitcoin’s surge has caught the attention of George Milling-Stanley, State Street Global Advisors’ chief gold strategist, and he’s not too thrilled about it.
He warns that investors might be falling for a dangerous illusion, mistaking Bitcoin’s meteoric rise for something stable.
Dude likely didn’t get the memo about the stability of math and physics behind the Bitcoin network.
The illusion of stability
Milling-Stanley argues that Bitcoin simply doesn’t stack up against gold when it comes to safety.
We just laughing in ’Executive Order 6102’, remembering the safety of gold. But anyway, he believes the current excitement around Bitcoin is all about chasing returns rather than seeking reliability.
Bitcoin, pure and simple, it’s a return play, he claimed, suggesting that many are jumping on the bandwagon without considering the risks involved.
His comments came during the 20th anniversary celebrations of SPDR Gold Shares ETF, the largest physically backed gold ETF in the world.
This year alone, GLD has seen over a 30% increase, and Milling-Stanley took the opportunity to remind everyone just how resilient gold has been over the years.
“Gold was $450 an ounce 20 years ago. Now it’s five times that.”
He pointed out without mentioning the destructive debasement what caused this. If gold continues on this trajectory, he predicts it could reach over $100,000 an ounce in twenty years.
Gold still shining bright
Gold is still delivering solid performance. Futures for the precious metal recently hit $2,700, their highest point since November 5 and just 3% shy of the record high from late October.
While gold enjoyed its best weekly performance since March 2023, Bitcoin’s explosive growth has stolen some of its thunder.
Historically, investors have viewed both gold and Bitcoin as safe-haven assets, but recent trends are starting to pull them apart. Since the November 5 elections, Bitcoin has skyrocketed thanks to political optimism and growing adoption.
On the other hand, gold’s strong year is showing signs of wear as profit-taking begins to chip away at its momentum.
Milling-Stanley isn’t buying into the hype surrounding Bitcoin’s rise. He accused crypto advocates of trying to overshadow gold and even pointed out how they’ve borrowed mining terminology as a marketing strategy.
“This is why Bitcoin promoters called it mining. There’s no mining involved; it’s just a computer operation. But they wanted to seem like gold—maybe take some of its shine away.”
Yes, and in the cars’ engines, there are no horses to generate horsepower. Terminology theft! Scandal!
A fun ride ahead, like a Weimar-vibe fun, right?
Despite his skepticism about Bitcoin, Milling-Stanley remains confident in gold’s enduring value, but he admits that predicting the next 20 years is tricky.
“I have no idea what’s going to happen except that it’s going to be a fun ride.”
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