Bloomberg Analyst Gives a Simple Reason Why BTC Is Better Than Gold

Mike McGlone, Bloomberg’s senior commodity strategist, in his latest Bitcoin report remains bullish on the “first-born” crypto and points to the advantage it holds over its hedging rival gold:

“Unlike quasi currency brethren gold, higher prices won’t be an incentive for more supply.”

Is BItcoin’s supply inelastic?

McGlone alludes to the fact that in most commodity markets, greater demand leads to higher prices, which in turn leads to greater production of the commodity and price stabilization. However, Bitcoin’s supply is controlled with code. Moreover, the rate of production of new Bitcoin will be halved next week.

Although an argument could be made that although Bitcoin mining cannot be altered by greater demand, still, its supply is not inelastic. The amount of the asset that long-term holders take out of the short-term supply responds to price.

Perfect setup like its 2017

Furthermore, McGlone states that the combination of Bitcoin’s anti-inflationary supply framework…