Degen

A new analysis from Fidelity Investments suggests that Bitcoin may soon replace gold as the primary store of value.

Jurrien Timmer, global chief investment officer at Fidelity, compared the Sharpe ratios of Bitcoin and gold, citing data from Fidelity Management & Research and Bloomberg on Platform X.

He noted that the two assets are negatively correlated and have been the leaders in their respective time periods. Given the current Sharpe ratio, Timmer believes that it may be time for gold to take over the lead and that the cryptocurrency will outperform.

However, he recommends that investors consider both assets as part of a single strategy, not as competing options. Timmer says there is no reason for investors to want to prefer one over the other, as they are like different players on the same team and you can have both together.

He described Bitcoin as a “modern invention” that is seeking to become hard money in an age of easy money.