Why Bitcoin is a Buy-and-Hold Asset Like Gold
Introduction The buy-and-hold investment strategy involves acquiring and holding an asset for an extended period, anticipating long-term value appreciation. Gold has long been a cornerstone of this approach, prized for its stability, scarcity, and role as a hedge against inflation and economic uncertainty. In recent years, Bitcoin has emerged as a modern contender, often referred to as “digital gold.” This article explores why Bitcoin is increasingly compared to gold as a buy-and-hold asset, examining their similarities, differences, and the arguments for and against this comparison. What is Gold? Gold has been a symbol of wealth for thousands of years, valued for its rarity, durability, and aesthetic appeal. As a finite resource, its supply is limited by the amount that can be mined, contributing to its status as a store of value. Historically, gold has served as a medium of exchange, a unit of account, and a safe-haven asset during economic downturns. Its physical properties ma...