US Monetary Reserve Strategist: BTC can become a gold competitor, but diversified investment cannot completely eliminate risks

Edmund Moy, senior IRA strategist at US Money Reserve, the main distributor of precious metals issued by the US federal government, said that on the surface, Bitcoin can be a competitor to gold because they are both alternative assets that can help reduce risks in traditional portfolios. Crypto bulls have long touted Bitcoin as "digital gold", and Federal Reserve Chairman Powell recently said that Bitcoin is "just like gold." Edmund Moy believes that their "differences are greater than similarities" and that "the correlation between gold and Bitcoin is not strong." Given the uncertainty of the coming year, this may be the strongest reason for investors to hold both. Still, Edmund Moy said that investors seeking to diversify their portfolios should remember that diversification alone cannot completely eliminate risk, especially given Bitcoin's volatility. (morningstar)