Lynn Alden suggests that Bitcoin will outperform gold by 2029

Macroeconomist Lynn Alden says Bitcoin is likely to outperform gold in 2029 following a strong rally in gold.

“If I were to bet on Bitcoin over gold over the next two to three years, I would bet Bitcoin,” Alden said. Finance of the new era podcast on Wednesday.

“Gun to my head, if I had to say which one is better than me, I’d say Bitcoin,” he said.

“Usually it’s a pendulum between the two. If gold is up as much as it is, the whole story of diminishing returns in one period will be erased in the future as well.”

Many crypto industry leaders, including Coinbase CEO Brian Armstrong, have predicted that Bitcoin (BTC) will hit $1 trillion by 2030, with tighter regulations taking shape in the U.S., which Armstrong called “a wake-up call for the rest of the G20.”

Alden denies that gold is in a bubble

Bitcoin is often compared to gold as a hedge against inflation and economic uncertainty, and many investors refer to it as “digital gold”.

Alden said gold is feeling “somewhat euphoric” after hitting an all-time high of around $5,608 in January.

“I wouldn’t say it’s a bubble, but it’s somewhat euphoric,” he said.

The JM Bullion Gold Index, which tracks sentiment toward gold, posted a “Buy” score of 72 out of 100 on Friday. Meanwhile, on the same day, the Crypto Fear and Greed Index, which measures sentiment across Bitcoin and the broader crypto market, posted a “Severe Fear” score out of 100.

Alden said sentiment toward Bitcoin is “somewhat unfairly negative.” According to CoinMarketCap, Bitcoin is at $71,164, down 44% from its October high of $126,000.

Alden said he refuses to rely on hard narratives about the relationship between the two assets.

“I try to be ambivalent about reading these things. Gold and Bitcoin can go up together, they can go down together,” he said.

Investors are arguing about Bitcoin

Although the two assets are often grouped together as alternatives to fiat currencies, the relationship is not always consistent; Sometimes prices move in tandem during periods of macro uncertainty, and other times they diverge.