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Gold lovers continue to buy mining stocks, while Bitcoiners keep their Bitcoins

May 27, 2020

After a Tweet May 26 by a Messarii researcher, the Defenders of Physical Gold (known as Gold bugs) like Peter Schiff They run out of cards in their hands. Last year the performance of shares in gold mining companies Really outperformed real gold.

However, Bitcoin (BTC) fans they have nothing to fear knowing that Bitcoin mining companies’ stocks tend to outperform cryptocurrencies.

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At first glance, the performance of gold in the past twelve months looks pretty impressive with a profit of almost 40%.

Gold lovers continue to buy mining stocks, while Bitcoiners keep their BitcoinsGold lovers continue to buy mining stocks, while Bitcoiners keep their Bitcoins

Taking into account the shares of gold mining companies such as Newmont, Franco-Nevada, Wheaton Precious Metals and Barrick.

These four companies had an average performance of almost 120% last year, effectively take a leveraged position in the gold industry with triple the profit.

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On the other hand, The price of Bitcoin has risen by around 25% in the past 12 months. If we only take into account the numbers from the beginning of 2020, this will double the gold value.

However, the shares are the Bitcoin mining companies they didn’t do it so well. Looking at Riot, Canaan, Hut 8 and Hive, only Hut 8 has had positive returns over the past 12 months and is around 25% BTC.

The other three actions had an average decrease more than 40% each with a performance far below Bitcoin.

Bad news for gold bugs

Therefore, it seems that the fanaticism and desire of the defenders of gold makes them blind given the potential for investment in mining companies.

What about bitcoiners? Well, they could always keep their bitcoins to use Get a DeFi loan and spend it on gold mining stocks by exposure to leveraged gold and BTC profits.

You cannot do this with a gold bar.