Pompliano Calls Gold ‘Disastrous Investment’, Sparking Gold Vs BTC Debate

Key Takeaways

• Pompliano sparked a fresh debate after calling gold a disastrous investment and supporting BTC.
• Both BTC and gold hit all-time highs this month.
• The Gold remains less volatile, but the narratives around BTC are shifting as financial institutions and countries are considering the possibility of BTC as a strategic reserve.
• The experts recommend portfolio diversification to reduce the risks.

The crypto investor Pompliano sparked a fresh debate after calling gold a disastrous investment since 2020 and supporting Bitcoin (BTC) in his post on X (formerly Twitter), inviting mixed responses from the larger investor community. 

The Gold Vs BTC Debate

In his post, Pompliano has shared data showing that the gold had lost 84% of its purchasing power compared to a finite sound money asset like Bitcoin. The post received criticism from seasoned investors; according to them, Pompiano’s argument is limited by the timeframe he has picked. The analyst Peter Schiff even pointed out that since 2020, gold had outperformed both real estate and the S&P 500. The back and forth led to heated exchanges with Pompliano sticking to his claim by saying that BTC has outperformed gold consistently in any timeframe. Both gold and BTC have hit record highs this month.

Gold Vs Digital Gold: Which is Losing Its Luster?

The BTC hit its all-time high of $126K on October 6. The price surge was attributed to the safe-haven perception amid the macroeconomic uncertainty caused by the U.S government shutdown, anticipated Fed rate cuts, and ‘Uptober’ sentiments. The development is seen as a significant event showing a shift in the global economic framework. Nevertheless, BTC failed to continue its rally and witnessed a decline of more than 10% on Saturday following the U.S president’s 100% tariff rhetoric on China. Despite the intraday setback, BTC has recovered and is trading around $114,513.07 today. The institutional support for the world’s largest cryptocurrency remains solid in spite of record liquidations fueled by macro pressure.

The gold, on the other hand, hit an all-time high of $4,059.30 today amid the resurfacing trade tensions between the US and China. The Price surge is also fueled by the anticipated Fed rate cuts. Gold is a time-tested safe-haven physical asset whose price has increased consistently in the recent past.

Also Read: Best Crypto to Buy now

Even though gold remains a remarkably less volatile strategic long-term investment, there is a visible narrative shift around the digital assets, especially regarding BTC. The world’s largest cryptocurrency, launched only in 2009, has entered into corporate treasuries and leading financial institutions, and even countries are considering adding it to their reserves. According to Deutsche Bank forecasts, BTC will be part of central bank reserves by 2030. The digital asset is meant to hedge against inflation and geopolitical risks. Earlier this month, two Swedish lawmakers introduced a bill to consider building a national Bitcoin reserve. These developments show the changing narrative around cryptocurrencies.

The Final Thoughts

The crypto market is an emerging market where price swings are normal, but the recent events, such as BTC hitting new record highs and the safe-haven narratives, show that it has integrated well into the global economic framework. The larger investor community also acknowledged that it has store value and its supply is capped at 21 million. Nonetheless,  investors need to be wary of the highly volatile nature of the crypto market. The experts suggest a diversified portfolio of multiple asset classes to reduce the risks amid the troubled economic and political times.