China stock crackdown, plus experts share their favorite crypto apps

Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.

China's flag with a downward trending arrow stemming from the second small star on a black gridded background

Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

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Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at jciolli@insider.com or on Twitter @JoeCiolli.


A full-blown meltdown in Chinese stocks

china chinese stock market traders investors screen

US investors hold $2 trillion in Chinese stocks, but the entire market is effectively a financial house of cards. By skillfully exploiting regulatory loopholes in both Beijing and Washington, Chinese companies have evaded oversight, keeping investors in the dark about the true state of their finances. Read our full analysis here.

Read the full story here:

Chinese stocks are tanking. Here’s why their financial meltdown could get way, way worse.


10 crypto traders show us the apps they use

In this photo illustration, the Coinbase cryptocurrency exchange logo (C) is seen on the screen of an iPhone

Cryptocurrency trading can be incredibly challenging, with 24-hour markets and extreme volatility. Investors often use multiple apps and platforms to make sense of what’s happening in the market. We spoke to 10 crypto experts to understand what apps they use for trading, price monitoring, and news.

Read the full story here:

We asked 10 crypto traders to show us the apps they use on their phone to trade, track prices, and read news


Meet a real-estate investing power couple

This is a photo of Sean Pan on the left and Sharon Tseung on the right, sitting next to each other.

Between the two of them, real estate investors Sharon Tseung and Sean Pan own 21 rental units. In an interview with Insider, they explained their entire process, from how they decide which geographies to pursue, to how they normally finance their properties.

Read the full story here:

A couple in their 30s breaks down how they came to own 21 rental units in affordable, high-appreciating areas across the country – and share their approach for picking top cities, realtors, and financing strategies


Stock pick central

Seeking experts who are willing to name names? Look no further:

Read the original article on Business Insider

13 must-see charts, plus an $875 mini bitcoin-mining rig

Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

If you aren’t yet a subscriber to Insider Investing, you can sign up here.

Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at jciolli@insider.com or on Twitter @JoeCiolli.


13 must-see charts for the 2nd half of 2021

An employee views trading screens at the offices of Panmure Gordon and Co

The first half of 2021 in the stock market has been full of once-in-a-decade events. We asked 5 strategists from leading institutions to outline the most compelling charts informing their outlooks for the second half. Here are their top 13.

Read the full story here:

13 must-see charts for navigating markets in the second half of the year, according to strategists at 5 top investment banks and asset managers


Check out this $875 mini bitcoin-mining rig

This is a photo of Idan Abada, a crypto TikTok influencer and miner, holding a mini bitcoin mining rig. He's wearing a black t-shirt.

Idan Abada has gone viral on TikTok with an $875 mini bitcoin-mining rig. He explained to us how mini miners are generally used, what people usually hope to accomplish, and which limitations can impede success.

Read the full story here:

An $875 mini bitcoin-mining rig is viral on TikTok. The video’s creator told us 3 reasons why it’s an appealing alternative for crypto traders, and explained its limitations.


An interview with Grayscale’s CEO

Michael Sonnenshein

Grayscale Investments has launched a DeFi index fund in collaboration with CoinDesk Indexes. The market-cap-weighted index fund is Grayscale’s 15th product and tracked 10 tokens as of July 1. Grayscale CEO Michael Sonnenshein told Insider why they’re launching the DeFi fund now.

Read the full story here:

The world’s largest crypto asset manager is launching a decentralized finance index fund. Grayscale CEO Michael Sonnenshein told us why the firm is betting on DeFi amid surging demand from institutional investors.


Stock pick central

Seeking experts who are willing to name names? Look no further:

Read the original article on Business Insider

How to spot short squeezes, plus 27 must-read crypto books

Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.

GettyImages 1230440907

Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

If you aren’t yet a subscriber to Insider Investing, you can sign up here.

Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at jciolli@insider.com or on Twitter @JoeCiolli.


How to spot short squeezes

Reddit WallStreetBets WSB

GameStop shares have skyrocketed this year after a meme-fueled short squeeze shocked Wall Street. Hedge funds continued to short the stock even after the initial whirlwind, which further fueled the trend. Longtime GameStop analyst Michael Pachter shared with us how investors can spot squeezes – and also successfully short stocks themselves.

Read the full story here:

A GameStop analyst shares how to successfully spot the short squeezes that send meme stocks to the moon – and warns of a common shorting mistake to avoid


27 must-read crypto books

A collage of crypto book recommendations from experts

The sudden rise of cryptocurrencies has dominated headlines in markets both this year and last – and it’s caught some investors off-guard. We asked 15 crypto experts for their top book recommendations to help you get smarter on crypto, and ended up with 27 prime recommendations.

Read the full story here:

Your ultimate crypto reading list: 27 books that experts say everyone should read to better understand digital currencies and invest in them profitably


99th-percentile strategy

trader celebrate

The Balter Invenomic Fund has beaten 99% of peers over the past year, and is in the 95th percentile over 4 years. The fund’s managers told Insider about their highly diversified approach to stocks, which includes both long and short bets.

Read the full story here:

The managers of a high-flying value fund that’s crushing the market and beating 99% of its competition this year told us how they’re doing it – and the vital role that betting against stocks plays in their process


Stock pick central

Seeking experts who are willing to name names? Look no further:

Read the original article on Business Insider

SIGN UP FOR INSIDER INVESTING: How to mine doge, plus a playbook for trading meme stocks

Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.

GettyImages 1299388500

Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

If you aren’t yet a subscriber to Insider Investing, you can sign up here.

Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at jciolli@insider.com or on Twitter @JoeCiolli.


How to mine doge

This photo is of Dason Thomas, a crypto miner. He is wearing a white hoodie standing front of the exterior of a building.

Dason Thomas says he began mining crypto in his garage to earn altcoins like doge and litecoin. He then converts the mined altcoins to cryptocurrencies he prefers like ether, or buys more miners. Thomas breaks down how he got started with a $700 rig, and how he’s set up now.

Read the full story here:

How to mine doge: An 18-year-old TikTok influencer shares his process for earning crypto without directly buying via a $700 rig – and explains how it works for other altcoins including litecoin


A playbook for meme stocks

Reddit WallStreetBets WSB

Morgan Stanley strategist Boris Lerner argues that investors should look at the patterns of retail traders to gain an advantage. He says heavy retail selling is a good predictor that a stock will underperform in the next month, and lays out six popular bets for day traders.

Read the full story here:

Morgan Stanley shares a meme-stock playbook that average investors can use to profit from the Reddit-driven market revolution – including 6 specific areas day traders love


Top 10 shorts ahead of earnings season

New York stock exchange trader

Stocks have been on a hot streak but a variety of factors could stoke volatility heading into the third quarter. Ahead of a hotly anticipated earnings season, the founder of TradeZero America lays out the 10 most-shorted stocks above $10, which could either continue to face pressure, or be squeezed higher by retail traders.

Read the full story here:

TradeZero’s co-founder shares the top 10 stocks above $10 traders are shorting on the online brokerage ahead of a potentially volatile earnings season – and explains why they are either primed to become meme stocks or profitable shorts


Stock pick central

Seeking experts who are willing to name names? Look no further:

Read the original article on Business Insider

JPMorgan says the recent cryptocurrency plunge and shift into riskier altcoin bets looks a lot like the 2017 collapse

Bitcoin Bubble
Bitcoin replica coins are seen on November 13, 2017.

  • Crypto’s recent plunge bears some resemblance to the 2017 collapse, JPMorgan said.
  • The firm’s Josh Younger noted that like the end of the 2017 bull cycle, investors are beginning to diversify out of bitcoin and ether and into riskier altcoins.
  • But Younger also said the crypto market is more resilient than it was in 2017.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The recent cryptocurrency sell-off that saw bitcoin fall over 50% from its highs looks a lot like the collapse at the end of crypto’s previous bull cycle, JPMorgan’s head of interest-rate derivatives strategy said.

In a Monday note, Josh Younger said that although the recent run-up in the total cryptocurrency market capitalization was more gradual than the 2017-2018 cycle, the unwind bears some resemblance to the collapse.

The pace and magnitude of the unwind looks “eerily similar” to the previous cycle, he said. And just like in 2017, investors have begun to diversify away from bitcoin and ethereum and into stablecoins and altcoins. As the crypto frenzy continues, investors buy riskier and riskier assets.

This risky pivoting combined with negative momentum signals and institutional outflows “should caution any view that the worst is clearly behind us,” Younger warned.

However, he also acknowledged there are a number of differences between the two cycles. This time around, the market hasn’t seen the frothiness that stemmed from the frenzy of ICO’s (initial coin offerings.)

Also, there’s been more institutional sponsorship in this current cycle, continued development and maturation of market infrastructure, broader and cheaper availability of leverage, and the rise of DeFi projects, Younger said.

The strategist concludes that crypto is in the middle of a “sizeable correction,” and it’s too early to call the bottom, but the resilience of the crypto market structure is a “positive technical backdrop” for a recovery.

“We continue to see evidence of resilient microstructure in cryptocurrency markets: the volatility spike appears somewhat regionally localized, market depth is down but has not cratered despite these moves, and derivatives pricing has managed to adjust quickly enough to retain a decent fraction of the levered long base,” Younger said. “This all argues against the view that we are in the midst self-reinforcing vicious cycle of price declines-a classic run scenario.”

Screen Shot 2021 05 25 at 1.10.20 PM

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Forget dogecoin: Here are 5 under-the-radar altcoins you need to know

altcoins ripple litecoin

  • Notwithstanding the boom in bitcoin, altcoins are also finding gains.
  • “Altcoins are good for diversity in your investment portfolio,” said Tally Greenberg of Allnodes, staking and hosting platform for cryptocurrency investors.
  • Insider gives you a brief look at avalanche, cardano, polkadot, cosmos, and the graph.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

As bitcoin cements itself center stage as the world’s most popular cryptocurrency, flanked by the likes of ethereum and dogecoin, there’s a group of alternative coins rising on the periphery out of mainstream focus: avalanche, cardano, polkadot, cosmos, and the graph.

They’re all newer, more volatile, and smaller by market capitalization – and also offer higher possible returns, said Tally Greenberg, head of business development at Allnodes, a staking and hosting platform for cryptocurrency investors.

“Altcoins are good for diversity in your investment portfolio,” she said. “They are different from commodities and stocks. Therefore, they do not correlate with other traditional investment assets.”

Greenberg added that investors can get higher returns with altcoins, and can also earn some passive income through staking, a method where an investor holds or locks her cryptocurrencies to receive rewards. But the most compelling reason for Greenberg to invest in altcoins is the unique blockchain infrastructure that accompanies them, which she says offers immense future upside.

Antoni Trenchev, co-founder and managing partner of Nexo – a financial institution for digital assets – agreed that altcoins are slated for significant rallies this year.

“More and more alt-coins are getting on traders’ radars,” he said. “They are also putting ethereum under pressure as the top [decentralized finance] dog is becoming heavily congested due to the influx of users, developers, [decentralized application], DeFi protocols, and the [non-fungible token] craze.”

Harold Montgomery, managing director at digital payments platform Wirex, believes in the future of altcoins as well.

“These new currency systems will overcome the scalability and transaction speed limitations of bitcoin and ethereum which currently hinder their usefulness,” Montgomery said. “They will support billions of transactions, sometimes of very small size, enabling global commerce.”

Yet for some, including Mike Venuto, co-portfolio manager of a $1 billion ETF that focuses on blockchain technologies and companies dealing with cryptocurrencies, altcoins are still nascent.

“I think they are interesting ideas, but too early,” he said. “Many of these altcoins have great concepts but the protocols to support them need more adoption before they can succeed.”

Venuto added that even bitcoin is still in the process of establishing its own infrastructure. The same goes with ethereum.

Read more: The investing chief of a crypto hedge fund breaks down why he thinks bitcoin will achieve a $5 trillion market cap by 2023 – and shares 2 emerging areas of the asset class that he’s bullish on

Pankaj Balani, CEO at Delta Exchange, a digital asset derivatives exchange, shares the same skepticism, although is slightly more bullish when it comes to polkadot and cardano.

“We have seen bitcoin gain close to six times on the back of institutional participation,” Balani said. “The trend has however not been the same for altcoins. Though in some cases the absolute returns might be higher most of the coins have started to move only in January.”

Still, the rise of altcoins is drawing some attention for a couple of reasons. Insider gives you a look at five altcoins that are gaining traction:

1. Avalanche

Avalanche is a new blockchain that can process more transactions than ethereum at a much faster rate but at a lower cost. Greenberg said sees it as “a promising technology that does more for less.” For instance, if ethereum can support 30 transactions per second, avalanche can do the same for 4,300.

Why is it important? Greenberg points to the rise of new services such as decentralized finance or DeFi, and to the existing infrastructure for such projects.

2. Cardano

Cardano is also a new blockchain that positions itself as a positive global change, especially with its goal of providing access to financial services in developing countries. Greenberg also said it is more energy-efficient than bitcoin.

Why is it important? For Greenberg, investing in Cardano is for those who believe in its philosophy and approach. Further, the blockchain, she said, regularly updates and “seems to be on track in meeting their projections, which underlines consistency in the blockchain’s overall health.”

Read more: A Norwegian billionaire who just set up a $59 million unit to invest in the bitcoin ecosystem breaks down his 3-fold strategy – and shares why he believes the digital currency is ‘a solution rather than a problem’ to many of its perceived challenges

3. Polkadot

Polkadot is a Swiss blockchain born in the midst of a global pandemic. Jeffery Wang, head of Americas at The Amber Group, a cryptocurrency company, referred to it as “one of the most highly anticipated next-gen blockchains” as it enables developers to build their own blockchains and connect them with each other.

Among other reasons, Wang said Polkadot overcomes the scalability issues that are present in Ethereum. Greenberg and Wang noted that Polkadot is meant to complement Ethereum, not compete with it.

Why is it important? It is a new but promising technology that many dApps developers seem to be keen on, Greenberg said. She also added that the ability to communicate with many blockchains is crucial and encourages investing in polkadot if one believes in the future of decentralized applications.

4. Cosmos

Similar to Polkadot, Cosmos is an ecosystem of blockchain that offers interoperability, allowing an exchange of data between different blockchains. The blockchain of cosmos, however, Wang said, is independent and has its own consensus mechanism and validators to secure itself, unlike polkadot and ethereum.

Why is it important? Wang said investors who put money in cosmos are those that are looking for a solution “to help the entire blockchain sector advance by bringing different projects together,” not necessarily those who are looking to find a “winning blockchain-takes all scenario.”

5. The Graph

The Graph, only a few months old, is a decentralized and open-source indexing protocol for blockchain data, Wang explained. It is not as established just yet, but is called the “Google of Blockchains” by its advocates since the platform can be utilized to search for any data through simple queries.

Why is it important? – While it has little to show, for now, Greenberg and Wang believe that there is huge potential with the graph, particularly with how it can be used to index all blockchains and decentralized applications. The graph’s technology, Greenberg added, is already in use by Uniswap, which is a decentralized exchange.

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Cryptocurrencies are attractive as a ‘small part’ of any portfolio, George Ball says

bitcoin
  • CEO of investment firmSanders Morris Harris, George Ball, said cryptocurrencies are “attractive” as a part of any portfolio.
  • Ball said he sees cryptocurrencies as an effective hedge against currency debasement.
  • The CEO also argued stock speculators will make the shift to crypto markets if there is a pullback in equities.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

George Ball told Yahoo Finance on Thursday that he believes cryptocurrencies are “attractive” as a “small part” of any portfolio.

Until recently, the chairman and CEO of investment firm Sanders Morris Harris had long been a critic of bitcoin and other cryptocurrencies.

In a video call with Reuters last August, Ball told investors that it was time to buy bitcoin.

“I’ve never said this before, and I’ve always been a blockchain, cryptocurrency and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end,” Ball said.

Now, Ball is again making the case for investors to consider digital assets.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Ball told Yahoo Finance that he believes cryptocurrencies are now ideal targets for investment by wealthy individuals and institutional investors for two main reasons. First, Ball argued cryptocurrencies will be an effective hedge against the debasement of fiat currency.

“Longer-term if inflation is back, if we start to debase the currency badly, then the cryptocurrencies have a great deal of allure,” Ball said.

Secondly, Ball believes the increase in retail traders who speculate on stocks could lead to rising crypto prices. Ball said that the retail investor market has gone from “5% trading volume to 30%, to maybe 35%, of all volume today.”

The CEO said retail stock speculators will move to cryptocurrencies if they begin to face losses in the equity market.

“So if the investors are losing money in common stocks, but still want to speculate, then the cryptocurrencies I think will be the logical and likely next focus of their combined, individually small, but combined very large dollars,” the CEO said. 

Ball’s bullish view of cryptocurrencies comes amid a historic run for bitcoin, which hit record highs of over $58,000 per coin in February buoyed by institutional investment and interest from Tesla, MicroStrategy, and Square, among others.

And with high-flying tech stocks struggling, Ball’s prediction of a shift from stock speculation to crypto speculation may prove prescient.

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Cryptocurrencies are attractive as a ‘small part’ of any portfolio, former Prudential Financial chief says

bitcoin
  • Former Prudential Financial CEO and current CEO of Sanders Morris Harris, George Ball, said cryptocurrencies are “attractive” as a part of any portfolio.
  • Ball said he sees cryptocurrencies as an effective hedge against currency debasement.
  • The CEO also argued stock speculators will make the shift to crypto markets if there is a pullback in equities.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Former Prudential Financial CEO George Ball told Yahoo Finance on Thursday that he believes cryptocurrencies are “attractive” as a “small part” of any portfolio.

Until recently, the chairman and CEO of investment firm Sanders Morris Harris had long been a critic of bitcoin and other cryptocurrencies.

In a video call with Reuters last August, Ball told investors that it was time to buy bitcoin.

“I’ve never said this before, and I’ve always been a blockchain, cryptocurrency and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end,” Ball said.

Now, Ball is again making the case for investors to consider digital assets.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Ball told Yahoo Finance that he believes cryptocurrencies are now ideal targets for investment by wealthy individuals and institutional investors for two main reasons. First, Ball argued cryptocurrencies will be an effective hedge against the debasement of fiat currency.

“Longer-term if inflation is back, if we start to debase the currency badly, then the cryptocurrencies have a great deal of allure,” Ball said.

Secondly, Ball believes the increase in retail traders who speculate on stocks could lead to rising crypto prices. Ball said that the retail investor market has gone from “5% trading volume to 30%, to maybe 35%, of all volume today.”

The former Prudential Financial CEO said retail stock speculators will move to cryptocurrencies if they begin to face losses in the equity market.

“So if the investors are losing money in common stocks, but still want to speculate, then the cryptocurrencies I think will be the logical and likely next focus of their combined, individually small, but combined very large dollars,” the CEO said. 

Ball’s bullish view of cryptocurrencies comes amid a historic run for bitcoin, which hit record highs of over $58,000 per coin in February buoyed by institutional investment and interest from Tesla, MicroStrategy, and Square, among others.

And with high-flying tech stocks struggling, Ball’s prediction of a shift from stock speculation to crypto speculation may prove prescient.

Read the original article on Business Insider

‘Dr. Doom’ economist Nouriel Roubini says bitcoin is not a hedge against inflation and investors are ‘feeding the bubble’

Nouriel Roubini 4
Nouriel Roubini

  • Economist Nouriel Roubini renewed his pessimistic views on bitcoin in an interview with Yahoo Finance this week.
  • The professor said he sees bitcoin as a “pseudo-asset” that is pumped by “massive manipulation.”
  • Roubini also argued bitcoin isn’t a hedge against inflation or a store of value, because of its correlation with stocks.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Nouriel Roubini, an economist known as “Dr. Doom” for his bearish views, said bitcoin is not a hedge against inflation and investors are “feeding the bubble” in an interview with Yahoo Finance on Monday.

 “If people were really worried about inflation they would diversify in a wide range of assets that are historical good hedges against inflation. That’s not happening,” Roubini said.

“People say bitcoin’s a store of value against tail risk, but in February, March of last year when US stocks went down, say 35%, bitcoin was not a hedge, it went down by 50%” the economist added. “The reality is that no one knows what the value of this pseudo-asset is.”

Roubini has long been a critic of digital currencies, but after bitcoin hit a $1 trillion market cap last week the NYU professor has renewed his bearish calls. 

Roubini said he sees the digital currency as a volatile “pseudo-asset” and argued much of the price movement “is driven not by worries about inflation or debasement of fiat currencies,” but rather by “massive manipulation.”

The economist said that there are a number of schemes used by digital currency whales to push the price of bitcoin higher. In particular, he highlighted the stable coin tether as an example.

Roubini said tether is “produced out of nowhere with we don’t know which kind of backing and every other day there is another billion dollars of it that goes to buying bitcoin.”

“We know there are a whole bunch of legal investigations by the DOJ, CFTC, the attorney general’s office in New York, they are looking into what’s going on,” the economist added.

JPMorgan strategists including Josh Younger and Joyce Chang, also warned investors about tether in a note to clients last Thursday, per Bloomberg.

The analysts said Tether Limited is “engaged in a classic liquidity transformation along the lines of traditional commercial banks, but is not subject to the same strict supervisory and disclosure regime, and certainly does not have anything like deposit insurance.”

They also warned problems with Tether could lead to liquidity issues in the crypto market and that Tether Limited has “famously not produced an audit.”

Tether Limited announced a settlement with the New York AG for $18.6 million on Tuesday. The firm was accused of hiding $850 million in losses and has been under scrutiny to see whether it has sufficient cash reserves to back up all tether tokens in circulation, per CNBC.

Tether responded to questions about its business in a statement saying, “contrary to online speculation, after two and half years there was no finding that Tether ever issued tethers without backing, or to manipulate crypto prices.”

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Bitcoin vs. Gold: 10 experts told us which asset they’d rather hold for the next 10 years, and why

bitcoin vs gold 3
Bitcoin vs. Gold

As bitcoin continues its meteoric rise, breaching new records and crossing the $1 trillion market capitalization mark in just the last week, more investors are assessing the longstanding comparison between the famous cryptocurrency and an equally well-known asset class: gold

Both assets, experts say, are often seen as ways to diversify a portfolio or as a hedge against fiat currency inflation brought about by what some observers see as unsustainable fiscal and monetary policies.

Yet, until recently, it was rare to see Wall Street analysts, chief executives, or established investors seriously compare the two assets. Bitcoin, commonly referred to as digital gold, has historically been seen as a risky speculative investment for those looking to profit in the short term. Gold, meanwhile, has always been considered a safe-haven asset.

Now, bitcoin’s rapid ascent to over $57,000 per coin, backed by new investments from Tesla and other institutional names, has led some to question whether old assumptions about these assets are correct.

Given digital currencies’ dizzying climb, Insider surveyed 10 experts to see if they’d rather hold bitcoin or gold for the next 10 years, and why. We asked bitcoin bulls, gold lovers, analysts, executives, and more.

Read more: JPMorgan says buy these 40 stocks set to soar as bond yields make a surprising jump higher

Here’s what they had to say:

Holding Gold

  1. “My vote would be for gold because it has thousands of years of a historical record as a store of value, has one-fifth the volatility of bitcoin, and doesn’t face the same competition risk. The day that Queen Elizabeth trades in the five pounds of gold in her crown for crypto is the day I’ll shift course.” – David Rosenberg of Rosenberg Research, former Chief Economist and Strategist for Merrill Lynch Canada and Merrill Lynch in New York
  2. “Gold and silver have been stores of value and mediums of exchange for at least 4 millennia in every civilization in every corner of the world. It has unmatched accessibility to people of all economic standing and technological knowledge. And gold is the ultimate currency of central banks, silver of the people. There is room for cryptocurrencies too since their digital nature is a fundamental difference from gold and silver. But that characteristic also ensures that cryptocurrencies will never replace gold and silver and will ultimately improve the metal’s value.” – Phil Baker, President and CEO, Hecla Mining Company 
  3.  “Gold has long been considered to be the safe-haven asset of choice, and, while bitcoin is ‘the new kid on the block,’ it’s debatable that it will eat into gold’s market share for a number of reasons. Bitcoin and gold both have significant advantages over fiat currencies because neither can be diluted or debased. There is a possibility that bitcoin could one day cease to exist through hostile legislation. Some bitcoin derivatives have already been banned. Companies such as Facebook who have attempted to start crypto have been prevented from doing so. So, while bitcoin is a more recent form of investment that is certainly receiving a lot of hype, gold has retained its value through centuries. Whether bitcoin will offer the same level of longevity is highly questionable.” – Sylvia Carrasco, CEO and founder of the gold exchange platform Goldex. 
  4. “One of the assumptions underlying bitcoin’s bull case is its limited supply, but the supply of cryptocurrencies, on the whole, is theoretically unlimited. Some extol bitcoin as a portfolio diversifier, but it has so far exhibited higher correlations to equities than gold, particularly during periods of equity market stress when diversification tends to add the most value. The demand for bitcoin may be over its skis relative to its likelihood to carve out a significant economic or financial use case.” – Michael Reynolds, Investment Strategy Officer at Glenmede.
  5. “Both crypto and gold have passionate investor bases… However, there are very clear differences. Gold’s history as a basic building block of global money is 5,000 years old and time-tested; Bitcoin is 10 years old and has existed in only one monetary regime. The standard deviation of bitcoin’s price is 75%, making it a horrible store of value. Recent price history shows a large bias toward speculative interest, so much so that companies are tempted to include bitcoin on corporate balance sheets to help grow assets in excess of corporate performance. Crypto is a poor monetary substitute. In the US, filing your taxes requires a voluntary disclosure of your cryptocurrency profits. If a crypto trade automatically generated a statement to the IRS as a brokerage transaction does, the speculative outlook could dim.”- Robert Minter, Director of Investment Strategy, Aberdeen Standard Investments

Bitcoin Bulls

  1. “Bitcoin is a 100x improvement over gold as a store of value. The world is realizing this and beginning to reprice digital currency in real-time. Although bitcoin has increased hundreds of percent in the last few months, it is likely to continue appreciating in US dollar terms over the coming years. I suspect that bitcoin’s market cap will surpass gold’s market cap by 2030. For this reason, I own no gold and have a material percent of my net worth invested in bitcoin.” – Anthony Pompliano of Pomp Investments and Morgan Creek Digital Assets
  2. “The crypto bull run has seized the attention of millions of people who previously had never considered digital currencies like Bitcoin to be an alternative asset. While gold and bitcoin are both sometimes used as a means to diversify and hold a range of valuable assets, in many ways they are quite different. Bitcoin and other digital currencies can be easily traded on platforms. We have seen progressive global firms offering to receive payment in bitcoin and advocates such as Tesla taking an active role in promoting it. This liquidity, ease of exchange, and wider use in the modern economy are some of the major differentiators. Gold has a relatively defensive purpose- to hold value, whereas Bitcoin and other currencies are intended to have several uses, not least ease of exchange, purchase, and liquidity.” – Pavel Matveev, CEO, Wirex.
  3. “Based on the trajectory of this digital gold path and use cases globally, we believe bitcoin will be a mainstream asset class in the future. While gold has clear value and safety, the upside in bitcoin is eye-popping if it stays on its current course over the next decade.” – Daniel Ives Managing Director and Senior Equity Research Analyst at Wedbush Securities
  4. “Gold is, no pun intended, the standard if you want to measure purchasing power over millennia. The liquidity of gold has been consistent over time. Gold is what defines the X-axis of purchasing power over time. Bitcoin, while it shares defensive qualities with gold, has the additional attribute of being aspirational. What bitcoin would seem to possess is the potential to go up to multiples of a moonshot. No one thinks gold will moonshot. Bitcoin is also finite, unlike gold. No increase in demand can change that. There is zero elasticity.” – JP Thierot, CEO of Uphold, a digital money platform 
  5. “I would probably pick bitcoin but why not both? Gold and bitcoin have a very similar aspect to the portfolio. I would add gold as a diversifier. I would add bitcoin as a diversifier. The hedge is diversification. Bitcoin is a tool to get there. Bitcoin is a hedge to losing money to something stable.” – Mike Venuto, co-portfolio manager of the Amplify Transformational Data Sharing ETF, a $1 billion ETF.
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