'Bitcoin is Offensive, Gold is Defensive': Bitwise
Gold and Bitcoin are most effective when combined in a portfolio, according to Bitwise's Bradley Duke. Gold offers downside protection in falling markets, while Bitcoin provides higher upside during rebounds. Recently, gold and Bitcoin have diverged: gold has surged 46% in six months and set all-time highs, while Bitcoin dropped 40%. Duke attributes gold’s ongoing popularity to investor "muscle memory" and centuries of trust, noting Bitcoin adoption will take time. Traditionally, Bitcoin followed four-year price cycles triggered by supply-halving events. However, panelists argue the influence of halvings has lessened due to the majority of Bitcoin already mined and the outsized impact of ETF flows and institutional treasury acquisitions. Duke says Bitcoin is evolving into a legitimate macro asset embraced by sovereign states. Despite recent price volatility and challenges for new investors, panelists emphasized the importance of focusing on Bitcoin’s potential as global peer-to-peer cash rather than speculative trading. Concerns remain about the limited pool of top blockchain developers, many of whom might move on to other industries like AI.
