Bitcoin can’t match gold as inflation hedge: Morgan Stanley
Bitcoin is better than gold and is probably even better than conventional fiat currencies as a medium of exchange.
But the popular view that this immature currency is also superior to gold as a hedge against inflation and uncertainty still needs to be tested, according to Morgan Stanley.
“Some claim that the protocol limiting bitcoin’s supply growth rate, underpins its value,” says Morgan Stanley equity strategist Tom Price.
“But if bitcoin is successful long term, we should continue to see competitor cryptocurrencies and market strategies emerge to exploit the new economic rent — a bearish risk for bitcoin’s price.”