According to Golden Finance, Jurrien Timmer, Fidelity Investments’ global macro director, believes Bitcoin is poised to overtake gold in market leadership. By comparing their risk-adjusted returns via the Sharpe ratio—currently –0.40 for Bitcoin versus 1.33 for gold—Timmer notes the two assets move inversely and suggests that Bitcoin may soon inherit gold’s role. He recommends investors allocate portfolios in a 4:1 ratio of gold to Bitcoin, reflecting gold’s volatility being roughly one-quarter that of Bitcoin despite their comparable Sharpe profiles.
