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- Frank Giustra says Bitcoin has never acted like gold during market turmoil, calling it a speculative risk-on asset.
- The Canadian billionaire criticizes Bitcoin’s shifting narratives, urging advocates to stop comparing it to gold.
- Amid global tensions, gold outperforms Bitcoin, reinforcing Giustra’s view on their differing market behaviors.
Canadian mining magnate and billionaire Frank Giustra has made it clear that Bitcoin and gold do not serve the same purpose, urging market participants to stop comparing the two. Giustra states Bitcoin has never behaved in the market like gold when market stresses or geopolitical uncertainties hit.
According to him, investors reserve their choice of protection for gold rather than Bitcoin during periods of economic instability. On X (formerly Twitter), Giustra expressed his thoughts on the matter.
The mining financier explains that Bitcoin functions as a speculative investment and follows market speculation while failing to protect in volatile times. Bitcoin follows equivalent performance patterns with equities because it behaves similarly to risk-oriented assets in market declines.
Giustra has persistently voiced his negative stance regarding Bitcoin for several years. During their debate in 2021, Michael Saylor and Julian Giustra discussed Bitcoin’s legitimacy, while Giustra accused market manipulations of Bitcoin’s existence.
He diminished the impact of institutional participation when he spoke during the debating session. Wall Street shows no fundamental faith in Bitcoin fundamentals since its main interest centers around financial benefits.
Giustra Points to Bitcoin’s Shifting Narratives and Gold’s Recent Outperformance
The financier claims that Bitcoin supporters adopt different explanations to make Bitcoin acceptable in market conditions. Giustra pointed out Bitcoin has evolved more than the entire plot of the “Gone Girl” motion picture due to unsystematic advocate messages.
In a recent post, he criticized Bitcoin maximalists for promoting the cryptocurrency as equal or superior to gold. He strongly warned supporters to avoid continued deception toward the public before them.
Bitcoin performs less than gold because both assets have performed less since January. The precious metal continues to increase in value because trade tensions between countries and growing uncertainties in global politics are rising.
Bitcoin has faced difficulties in sustaining its forward trajectory. The cryptocurrency market follows a price pattern similar to U.S. stock market performances, which have decreased during this timeframe.
Market analysts suggest Bitcoin has dual characteristics that make it an investment refuge or a risky asset class. Giustra stands against this opinion since he believes Bitcoin fails to match the proven storage functions of gold.
The statements from Giustra rekindle the ongoing dispute regarding Bitcoin compared to gold in terms of their roles as value reserves. Market condition changes have prompted investors to evaluate the authentic place of digital assets in investment portfolios.
Also Read: Strategy Inc. Boosts Bitcoin Holdings With $1.92 Billion Purchase of Over 22,000 BTC
