Bitcoin Could Surpass Gold in Investment Portfolios, VanEck Executive Says
Matthew Sigel, Head of Digital Asset Research at VanEck, believes Bitcoin's share of the investment market could increase in the long term. However, he notes that quantum computing is not currently a significant threat to warrant investors selling BTC.
Sigel points out that the growth in the AI sector has made electricity infrastructure and long-term energy contracts owned by Bitcoin mining companies more valuable. In the past, these assets were primarily valued based on computing power and Bitcoin production capacity. However, with AI data centers' high and continuous electricity demand, this approach is changing.
Sigel notes that some Bitcoin miners have signed 10 to 20-year electricity contracts with counterparties that have investment-grade credit ratings. These agreements offer companies additional value not solely tied to the Bitcoin price. With the growth of the AI sector, affordable and stable electricity sources may become increasingly scarce, allowing mining companies with long-term energy access to capitalize on new business opportunities.
Sigel also compared Bitcoin to gold in terms of their positions in investment portfolios. He argues that Bitcoin could achieve a larger market share over time, and notes that VanEck maintains its positive view on Bitcoin's long-term adoption trend.