Gold Council Chief Dubs Bitcoin a 'High-Risk Asset'

David Tait, CEO of the World Gold Council, expressed his skepticism about Bitcoin's long-term prospects. He believes that Bitcoin could eventually drop to zero because it behaves like a high-risk asset during market stress, rather than a safe haven.

Tait contrasted Bitcoin with gold, which central banks continue to buy amid debt concerns and geopolitical risks. While acknowledging that holding both gold and Bitcoin can diversify portfolios since they react differently to market events, Tait emphasized the importance of gold's long-term stability and central bank backing.

Despite his skepticism about Bitcoin's value, Tait recognized that it has unique features and growing adoption, which are highlighted by its supporters. He also noted that central banks favor gold for its stability, but acknowledged that investors may choose to hold both assets as a form of diversification.