Can cryptocurrency act as a hedge in a portfolio like gold?3 min read . Updated: 24 Dec 2020, 05:35 PM IST
- Experts believe that these two are not comparable as cryptocurrencies are too volatile to be compared to gold which is a real physical asset. Gold has a well-established history and has proven itself as a safe-haven asset when other assets (such as equities and debt) don’t perform.
Price of cryptocurrencies, especially bitcoins have almost trebled in 2020. This trailblazing performance in a short period has again brought cryptocurrencies in the limelight, rekindling debate on its role in the investment portfolio. Some commentators are also comparing cryptocurrencies with gold and are suggesting them to be used as a hedge in the portfolio.
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