Choppy swings in Bitcoin prices have raised questions about its inclusion in an investment portfolio, while gold continues to play the role of an inflation and stock-market crash hedge. This is the view of Societe Generale’s analysts, CNBC reports.<\/p>\n
Experts warned that building a regulatory framework for cryptocurrencies constitutes a ‘big threat’ that could sustain downside pressure on their prices.<\/p>\n
Analysts deemed the direct comparison of gold and its digital counterpart incorrect.<\/p>\n
\n“We agree that investors view both assets as an alternative to fiat in the face of unprecedented monetary and fiscal stimulus. But in the absence of cash-flow generation, the only reward for Bitcoin and gold is their price appreciation. That is the only thing they have in common,” the analysts wrote.<\/em><\/p>\n<\/blockquote>\n
Societe Generale said it recommends a 5% allocation to the precious metal in model portfolios.<\/p>\n
\n“History shows that, over time, the price of gold is closely linked to real yields on bonds”<\/em>, \u2014 the analysts concluded.<\/p>\n<\/blockquote>\n
Earlier, JPMorgan analysts projected<\/a> Bitcoin sales and a shift into gold by institutional investors amid the current correction. In the long run, they say, the price of the first cryptocurrency could reach $146 000<\/a>.<\/p>\n