Recreate that emotion you felt when you bought your first NFT. I do. It was a pixelated pug in aviators and I was sure that it was my path to an early retirement. That pug just looks back at me now from my digital wallet. Second, it’s a great lesson that the hype train always has a tendency to strand you at the station.
Even JP Morgan agrees with my perspective that Bitcoin is not a safe-haven asset. Their thoughts show a sage appreciation for the world of cryptocurrency. And where I’m still licking my pug-related wounds, it seems like the wizened investors are beating a path to gold. And I mean really flocking.
Gold Gleams, Bitcoin Glooms
The numbers don't lie. Gold ETFs experienced a staggering $21.1 billion pour in during the first quarter of 2025. Meanwhile, Bitcoin ETFs? Three straight months of outflows. Ouch. Imagine your favorite local restaurant closing – you knew it was going to happen, but it still hurts.
Gold’s flexing its street cred these days go big or go home on the price of $3,660 an ounce. Bitcoin, by contrast, has gone on the defensive, plunging more than 20% from its January high. That’s enough to make even the most die-hard crypto evangelist lose their religion.
"Digital Gold" More Like Digital Dust?
Who could forget when Bitcoin was still being pitched as “digital gold”? The inflation hedge? The safe haven from, well, everything? Turns out, it’s closer to digital tumbleweeds – at least for the time being.
- Gold ETF Inflows: $21.1 Billion (Q1 2025)
- Bitcoin ETF Outflows: 3 Consecutive Months
JP Morgan points out Bitcoin’s volatility as a huge issue. Plus, its propensity to trade in lockstep with equities pretty much shoots the “digital gold” story in the foot. And they're not wrong. I don’t know about you, but how safe can something really be when it spins around like my moods on a double espresso?
Blame Trump? Blame Tariffs? Blame Someone!
Okay, so why the shift? The good news is that we can place the blame firmly on just a few bad actors. Though Trump’s election did inject some initial crypto enthusiasm into the markets that evaporated quicker than my day trading profits.
Geopolitical instability, particularly the trade war with China that Trump started, is a HUGE factor. Rising tariffs, a potentially tanking U.S. dollar, and general anxiety about a global economic downturn are all pushing investors towards the perceived safety of gold. It’s the fiscal equivalent of hiding out in an underground survivalist lair filled with non-perishable food items.
So, what's the takeaway? For me, and maybe for you, it's this: Don't put all your eggs (or pixelated pugs) in one basket. And the crypto market is still the Wild West. Even though you can rack up billion dollar successes, watch out for hazards such as a single unplanned-for tweet or a sudden global trade war that will crash your unprecedented accumulation of wins.
My Pug's Wisdom: Diversify, Diversify, Diversify!
JP Morgan’s view is not limited to gold vs Bitcoin alone. As much as anything else, it is a reminder that when times are uncertain, investors always go back to what they know and trust. Gold has a track record, a history. Bitcoin? It's still writing its story.
In short, the writing is far from written off on the future of bitcoin. Today, it’s clear that it’s not the safe harbor that many imagined. So maybe, just maybe, it's time to diversify your portfolio, dust off those gold bars (figuratively, of course), and accept that sometimes, the best investment is the one you don't make.
As for my pug NFT? I'm holding on to it. Perhaps, perhaps, pixelated pugs are the wave of the future. Or perhaps I’ll simply save my book money and use it as an excuse to listen more often to JP Morgan (and, on an occasional basis). Now, if you’ll excuse me, I have a gold ETF to investigate.
As for my pug NFT? I'm holding on to it. Maybe, just maybe, pixelated pugs will be the next big thing. Or maybe I'll just use it as a reminder to listen to JP Morgan (sometimes). Now, if you excuse me, I have a gold ETF to research.
