Will the Golden Goose Lay a Crypto Egg Next? By DailyCoin

• Palantir bought $50 million worth of gold bars in August.
• Crypto community questions Palantir: Why not cryptocurrencies?
• Gold is outperforming other assets during lockdowns.

While some companies like to diversify into , data analytics software company Palantir invested in gold. The company recently announced in its latest earnings release that it bought $50 million worth of gold bars.

Palantir Technologies (NYSE:) is a public American software company that specializes in big data analytics.This major move left many wondering, why not crypto instead of gold?

The company’s decision to invest in gold is indicative of a growing company stashing cash in an unconventional asset in response to economic uncertainty triggered by the coronavirus pandemic and governments’ responses to it.

Gold Is Not Dead

The famous William Shakespeare quote reads,

“Gold—what can it not do, and undo?”
Gold has been one of the best-performing assets since 2020. As the pandemic and lockdown of entire economies plunge debt-laden economies into financial and economic crises and stock markets plummet, gold is up 16.5% in dollars, 21% in euros, 25% in pounds, and more in other currencies.

The price of an ounce of gold topped $2,000 for the first time last year as the pandemic worsened and U.S. government stimulus programs continued.

This year, investors are speaking out about their inflation concerns.

Gold was used as a hedge against inflation, even though prices have decreased 7% this year.

Thus, Palantir’s preference to purchase gold bars seems to be fairly intelligible.

However, there’s still a chance that Palantir could expand into the cryptocurrency space after investing in gold. David Glazer, when asked by an analyst back in May whether the company might have Bitcoin or other cryptocurrencies on its balance sheet, said:

“The short answer is yes, we’re thinking about it, and we’ve even discussed internally.”
DailyCoin reached out to Palantir for additional comments but did not receive a response by press time.

Why Crypto May Not Be Worthy

There could be several reasons why Palantir chose to buy gold. Everyone is no doubt aware that crypto is a volatile market. Therefore, crypto exchanges are not necessarily the preferred investment option for everyone.

Unregulated and Exposed to Unscrupulous Behaviour

Unfortunately, cryptocurrencies can be exploited by criminals, who can use cryptos as a means to defraud unwary investors. It could be one of the reasons why central banks and regulators are so keen to get involved.

Of course, there are legitimate ways and means to invest in cryptos, but the lack of regulation makes them an attractive playground for less law-abiding members of society.

High Volatility, Large Potential Losses

Investors need to be aware that the potential for significant gains is offset to some extent by the possibility of substantial losses; the timing of an…