At first glance, gold and Bitcoin could not appear more different. Gold is a natural asset that has earned its reputation as a haven and store of value over thousands of years. It has even experienced a renaissance in recent years as a sought-after central bank reserve.
Bitcoin, by contrast, is a digital creation – a technical asset that emerged in the aftermath of the global financial crisis, born in an era when trust in traditional financial institutions was at an ebb.
While gold’s legitimacy is deeply rooted in history, Bitcoin’s value proposition stems from innovation. Its ambition is to become a sound form of money – and it is here that its similarities with gold begin to surface.
Like gold, it is mined, has a capped supply and is not issued by any central authority. Yet, its relatively short and volatile history makes it a more complex addition to traditional investment portfolios.
The strong performance of both gold and Bitcoin last year has led to a new debate over which is the better hedge. Gold climbed about 25 per cent. Bitcoin more than doubled, breaking past $100,000, and is staying above that mark for now.
For many investors, especially in the Middle East, the bigger question is how these assets fit into a portfolio designed to manage risk and capture long-term value.
Investors need not view gold and Bitcoin as mutually exclusive choices. In fact, both assets can coexist within a portfolio, each serving a distinct purpose. While a sizeable allocation to Bitcoin, such as 10 per cent, may not be appropriate for most investors, having 1 per cent is not a bad idea. It gives them the smell test, or the taste test, if you like.
That small allocation is not a speculative bet. It is part of a thoughtful and measured approach to help investors prepare for a possible long-term shift in the global monetary system. Bitcoin is still not a mainstream asset class, but it is getting harder to ignore. Taking a five-year view, it has delivered returns no other asset class has over the same time frame.
I often describe Bitcoin as the digital equivalent of gold. And investor demand is growing, particularly among those who are looking for assets outside the traditional system. But it is also volatile. If you are trying to de-risk your portfolio from a volatility point of view, you are better off with gold than with Bitcoin.
Structured solutions that combine Bitcoin with other asset classes have emerged as one way to gain exposure while managing risk and maintaining alignment with evolving regulatory requirements.
We are seeing rising interest from investors in “out-of-system” assets, ie assets that are not tied to central banks or fiat currency structures. While gold has long filled this role, Bitcoin is emerging as a digital alternative, particularly appealing to younger and less constrained investors.
As this shift continues, it is probable that Bitcoin will begin encroaching on gold’s traditional appeal. This may well represent the next evolution in investor behaviour.
This perspective is supported by our research, which demonstrates that both gold and Bitcoin can act as hedges against systemic financial risks, inflation and even de-dollarisation.
However, the analysis also highlights a critical distinction: Bitcoin still behaves like a risk-on asset. It tends to fall when equity markets correct, whereas gold often holds its ground. That is an important consideration when thinking about how much and in what way to include either in a portfolio.
Looking ahead, I strongly believe regulation will be a crucial factor. And here too, we are seeing progress. The questions now are, how do we audit this asset class and how do we ensure it meets anti-money laundering requirements? And we are seeing those issues being worked on in key financial centres.
Bitcoin is already halfway down the path to broader adoption. But for it to truly go mainstream, it needs to be as easy as tapping a credit card in a store. And, that level of integration will undoubtedly take time.
So, for investors in the UAE and across the region, this is not about choosing sides, but about preparation. Gold remains the core stabiliser. But Bitcoin, handled carefully and with the right structure, has a role to play as well.
Bhaskar Laxminarayan is chief investment officer for Asia and Middle East at Julius Baer
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
All the Money in the World
Director: Ridley Scott
Starring: Charlie Plummer, Mark Wahlberg, Michelle Williams, Christopher Plummer
Four stars
Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
More on animal trafficking
The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
ENGLAND TEAM
England (15-1)
George Furbank; Jonny May, Manu Tuilagi, Owen Farrell (capt), Elliot Daly; George Ford, Ben Youngs; Tom Curry, Sam Underhill, Courtney Lawes; Charlie Ewels, Maro Itoje; Kyle Sinckler, Jamie George, Joe Marler
Replacements: Luke Cowan-Dickie, Ellis Genge, Will Stuart, George Kruis, Lewis Ludlam, Willi Heinz, Ollie Devoto, Jonathan Joseph
