Several Wall Street Experts Believe Bitcoin Could Overtake Gold Author: Jimmy Aki Last Updated: 01 December 2020 Bitcoin has broken the all-time high price peg already this week and is now looking to at least stabilize its price above the $18,500 level. With the asset posting significant gains over the past month, experts are now taking it seriously and could see it become the global reserve currency – displacing gold. Gold’s Days Are Possibly Numbered Earlier this week, finance news source Bloomberg reported that several corners of Wall Street have been debating Bitcoin’s probability of displacing gold as the global reserve asset. The news medium explained that many investors question Bitcoin’s viability, especially considering that the asset remains volatile. However, investors could also begin moving portions of their wealth into the asset, marking the beginning of a diversification push. Jean-Marc Bonnefous, a crypto investor with Wall Street experience, told Bloomberg that gold had its glory days decades back. However, the times are changing, and several investors understand this. Bloomberg also noted that several traditional finance stalwarts had shown a penchant for Bitcoin. The crypto industry already got the cosign of notable billionaire investors like Stanley Druckenmiller and Paul Tudor Jones. The latest institution considering a Bitcoin move is Guggenheim Partners LLC, an investment and advisory firm with over $250 billion in assets under management. As Bloomberg reported on Sunday, the firm reserved the right to invest portions of its Macro Opportunities Fund – a $5.3 billion war chest focusing on fixed income and equity securities – in Grayscale’s Bitcoin Investment Trust. Bloomberg didn’t report on how much the firm plans to invest, although there is every possibility that it could pony up over $500 million. The Move Has Begun Citing data from JPMorgan, family fund offices are also selling units of their gold exchange-traded funds for Bitcoin. The investment giant reportedly pointed out that gold-backed funds have dropped 93 tons since November 6. On the flip side, Grayscale’s Bitcoin trust has doubled in dollar terms since August. James Butterfill, an investment strategist at CoinShares, told the news source: “Bitcoin is establishing itself as a credible store of value. This is particularly appealing during this time of unprecedented loose monetary policy. For these reasons, investors are naturally comparing it to gold.” While Wall Street appears to be getting to the party, many in the Bitcoin space have been talking up the asset’s potential of usurping gold for a long time. Amid the current rally, they have intensified their voices. Earlier this week, Cameron and Tyler Winklevoss, the Gemini Foundation’s co-founders, told CNBC that Bitcoin’s rally could set the groundwork for an eventual $500,000 rice peg. The twins explained that while the new all-time high is an impressive feat, the leading cryptocurrency sees an influx of investors, many of whom want to hedge against inflation. This influx could set the pace for an asymmetric return in the range of 25 to 40x. If that happens, Bitcoin could hit $500,000 and achieve a higher market cap than gold.