Austrian investor Ronald Peter Stoeferle believes that the value of BTC will rise sharply in the next decade. Nevertheless, he believes that primary cryptocurrency would never surpass gold and has identified the precious metal as the safest financial instrument. He made a compelling argument that gold works like a safe Volvo, while BTC is a wild ride like with Ducati.
What does the future of BTC look like?
In a recent interview with Kitco News, Ronald-Peter Stoeferle, Partner and Fund Manager at Incrementum AG, shared his views on cryptocurrency and its correlation with gold.
He said that BTC and Yellow Metal are in fact very similar financial instruments. In his opinion, they are not enemies, because both are “hedged against all those big currency experiments.” Investors should not choose one or the other, but should have an allocation in both.
Speaking of the future price of BTC, Stoeferle predicts that it could climb to levels that might now seem unimaginable:
“I think if BTC is here in about 5 to 10 years, prices will go to levels we can’t imagine at the moment.”
However, the Austrian do not believe that the primary digital asset will ever surpass gold as the leading financial instrument. Although BTC is “catching up fast”, it is still far behind the precious metal in terms of market capitalization.
Gold is like Volvo, BTC is like Ducati
Stoeferle explained the difference between the two assets and made an interesting comparison. He likened the stability of gold to “a large Volvo SUV in your garage that will take you comfortably from point A to point B.”
But this is not the case with BTC. The primary cryptocurrency is like riding a Ducati Panigale. Traveling with a really fast motorbike is definitely more fun, but at the same time riskier:
“And once it starts to rain or snow, it will be really risky. You just have to choose whether to withstand the volatility of BTC. “
He concluded that people either love a digital asset or hate it, “there is nothing in between”.
The relationship between virtual assets and precious metal has recently become a hot topic among many important personalities.
Another investor who expressed his views on the matter is Ken Moelis. The American billionaire made an interesting comparison between the ongoing cryptocurrency mania and the gold rush in the mid-19th century. He believes that people today are as enthusiastic about digital assets as they are about yellow metal in 1848.