Bitcoin (BTC) Set to Outperform Gold (XAU) Even Without US Government Backing, Says Luke Gromen

Veteran macro investor Luke Gromen believes Bitcoin (BTC) is set to outperform gold even without the backing of the US government.

Veteran macro investor Luke Gromen is sharing his thoughts on Bitcoin (BTC) and gold, arguing that the leading crypto will likely outperform the precious metal even without the support of the US government.

In a video posted on the Forest for the Trees YouTube channel, Gromen discusses the key factors that give Bitcoin an edge over gold.

“Support or no support from the government, I would expect Bitcoin to rise versus gold over time on face-peeling volatility that needs to be accounted for by most investors on a position-sizing basis.

That’s precisely what happened. If you call up a chart, this isn’t speculative. You call up a chart Bitcoin over gold, Bitcoin has crushed gold on face-peeling volatility. So that makes sense.

Bitcoin has a higher stock-to-flow ratio, it has an energy tie like gold does and Bitcoin has a growing network effect. As long as that growing network effect continues, then I don’t see any reason that that would change regardless of whether administrative continues or not.”

According to Gromen, Bitcoin benefits from a higher stock-to-flow (S2F) ratio than gold. The S2F model, which is traditionally used for commodities, predicts the performance of an asset based on the idea that the price increases as the asset becomes more scarce.

The macro investor also highlights Bitcoin’s energy tie and growing network effect as factors that will likely contribute to its outperformance over gold.

At time of writing, Bitcoin is trading at $90,593, up nearly 2% on the day.