Bitcoin and gold can co-exist as investment asset classes

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Over the past year bitcoin has made significant inroads as an investment asset class.Since its launch, the cryptocurrency has been relatively retail-oriented, in terms of its use in transactions. However, it is now fast becoming more accepted as a genuine investment by institutional investors.Bitcoin’s expanding list of advocates includes managed investment funds, companies and high-net worth individuals.The cryptocurrency’s derivatives, in the form of futures and options, now trade on the Chicago Mercantile Exchange in the US and the CAD$660 million ($705 million) Purpose Bitcoin Exchange Traded Fund (ETF) – North America’s first such fund – is publicly traded on the Toronto Stock Exchange in Canada.The rise of bitcoin has drawn comparisons with holding physical gold as an investment asset. They have some similar characteristics – both have limited supply, sit outside of the mainstream financial system, carry no counter-party liabilities, are uncorrelated assets and have been used as currencies.However, there…

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