(ATF) Rare earths could be a safer and even more lucrative investment than bitcoin now, some speculators have suggested.
Surging prices for the constantly in-demand vital metals and minerals used in so many tech products should make them a more sensible target for investors, over the relatively unstable cryptocurrency, said a report from Laowontong Finance.
Rare earth prices have continue to rise, hitting new highs in the past three years, fuelled by demand from the energy vehicle, wind power and air conditioning sectors.
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The rare earths sector, dominated by China, has also seen the introduction of increased government control and regulation recently, ironing out disruptive supply-side disturbances. This has led to some Internet speculators suggesting investing in rare earths is a better idea than bitcoin.
And according to Laowontong Finance, on top of the rise of new energy vehicles, the continuous development of aerospace technology will increase the demands on rare earth resources even more.
Meanwhile, although bitcoin has replaced some of the functions of gold and has become an alternative asset, its commercial application scope is inherently narrow.
INCREASED SCARCITY
Rare earths, like bitcoin, are both scarce and non-renewable resources. With the continuous advancement of mining and application, rare earth resources will continue to shrink, and the scarcity will increase.
Wontong Finance said that looking at “some of the characteristics of rare earths and bitcoin in comparison with each other, you can look at how to look at the rare earths sector in brokerage”.
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