First Mover: Digital Gold Narrative Could Be Bitcoin’s Lone Ace as Ethereum Gains
The trend could be good for bitcoin, which many crypto investors believe can serve as a hedge against inflation, a digital and perhaps more portable alternative to gold. The decades-long economic trend toward the moment where high inflation occurs began around 1980, when the share of wealth held by the richest Americans started increasing.Source: Bridgewater Associates/Lyn Alden Investment Strategy
But increasingly, it looks like bitcoin-as-inflation-hedge might be the cryptocurrency’s most compelling investment narrative, and not necessarily as the dominant digital asset for perpetuity, as many so-called bitcoin maximalists have argued.
Last week, bitcoin’s “dominance” – the market value of all bitcoins in existence, divided by the market value of all digital assets – fell to 57%, from 68% at the start of the year, according to CoinMarketCap. “The rivalry between Bitcoin ‘maximalists’ and Ethereum enthusiasts has become more polarized in recent months, with each side latching on to narratives that best support the asset to which they have pledged their allegiance,” Kevin Kelly, co-founder of the market-analysis firm Delphi Digital, wrote this month in report.
