Ardoino's Equation: Can Bitcoin and Gold Really Hedge Against Doom?

Tether's CEO Paolo Ardoino recently proposed an equation that suggests Bitcoin and gold are complementary assets, saying 'Bitcoin + Gold = hedge against doom.'

Ardoino was referring to financial or economic doom caused by inflation or low growth rates. Gold has long been seen as a safe-haven asset due to its scarcity and acceptance across civilizations.

However, data shows that Bitcoin hasn't held up well against inflation recently. Over the past 12 months, its price is down 30%, while gold is up 39%. In June 2022, when CPI inflation peaked at 9.1%, Bitcoin ended the year down 65%, but gold fell by only 0.7%.

Despite this, Ardoino's equation still contains some truth. Gold tends to gain value when investors feel fearful and central banks purchase it, while Bitcoin rises with excess liquidity in the market. In a scenario where both fearfulness and high liquidity coexist, gold and Bitcoin may perform well together.