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Bitcoin is taking the place of gold?


Why do many analysts think Bitcoin is taking the place of gold as a safe haven?

Hassan Qudrat-Ullah
6 months ago

10 answers


Bitcoin introduces a whole new way to consider commerce, so I don't think Bitcoin will replace any of the traditional things in finance. However, what Bitcoin will do is transform the way we think about financial value and currency.

Debbie Reynolds
5 months ago

Hi: I am not really sure but Bitcoin will be a more used payment currency in the future where Gold will not be as prominent. I feel Bitcoin will be very volatile over the next 5 or more years much more so then Gold will be,

Ralph Anderson, CPA
6 months ago
I agree that more volatility is bad for bitcoin to become a replacement of gold at any time soon. - Imane 6 months ago
Also, no regulation means a huge risk in Bitcoin transaction do exist. - Bo 6 months ago
Ralph Anderson, CPA, Bo Chen, and Imane BOUKHATEM, high risk and high volatility do not necessarily make anything as a fad. If we see “derivatives” and how big volume they trade-in, we can say Bitcoins will or can do the same. On the other hand, there is no tangible asset to back up, this creates doubts in their sustainability in the marketplace. - Tahir 5 months ago

If major giverments in the world make it legal and create markets for Bitcoins, only then it can. Until that happene hold on to your gold.

Imane B
6 months ago
In fact, it is going in the opposite direction. China has taken some serious actions. - Bo 6 months ago

I think Bitcoin is just a fad.

Ali Qudrat
6 months ago
Why would you think it is a fad? - Imane 6 months ago
Well, how can it not be fad when there is nothing physical asset to back ot up, would your tell why? - Ali 6 months ago
While I agree with you both, Imane BOUKHATEM and Ali Qudrat, that this has no physical asset behind. There are other instruments like derivatives which are hugely traded globally.. - Tahir 5 months ago

Bitcoin is not stable but gold is, so I don't think bitcoin can replace gold position as a safe haven.

Wasim Safdar
6 months ago
I agree on withWasim Safdar. Bitcoin is so volatile, unpredictable, and highly manipulatable that people should not equate it to gold. - Ali 6 months ago
What if it becomes stable in few years? - Imane 6 months ago
Even then, it is too risky because no physical assets to back it up.. - Bo 6 months ago
The ordinary currency doesn't have assets too. It is just paper! - Imane 6 months ago
Well, imagine this as an asset. Now this asset is based on what? Jut a hype or someones; ability to use Blockchain technology to churn out Bitcoins. In the end, someone has to pay, not? - Ali 6 months ago
I agee with youAli Qudrat. I have no idea why people will invest when there to asset to back it up? - Bo 6 months ago
Do you know any published research in this regard? - Ali 6 months ago

I don't think it wil work in China. Many governments are wary about the business of Bitcoin.

Bo Chen
6 months ago
If this does work in China, it will face difficulty in otehr countries as well. Unless, some kind of regulations and trust is not associated with Bitcoins, its success is in doubt. - Hassan 6 months ago
Maybe China will also re-think about it when others show the utility and befit of this digital currency revolution. I think this will an innovation the most admired by all of us soon. - Imane 6 months ago
Imane BOUKHATEM and Hassan Qudrat-Ullah, besides China, no country in Europe has legalized the use of Bitcoins. It is tool for biig players to manage big money. With no assets to back it, how come its price is that high, perhaps just the speculations. - Ali 5 months ago

I've read research/opinions on both sides of this debate for a couple of years. There are too many aspects to this debate. I'm all one for challenging paradigms and conventional wisdom, but I don't have a definitive opinion here.

Here is a recent video on the subject:

Vic Clesceri
6 months ago
Thank you, Vic Clesceri. This is an excellent video on the topic. - Hassan 6 months ago
Cryptocurrency is a thret for may powerful parties in the word. If they dominate the system it will work. But if not they will destroy it. - Imane 6 months ago
I think with blockchain technology, digital currencies might get a bit of more hype. In the long run, Gold is the king.. - Hassan 5 months ago
@hassan_qudratullahand Bo Chen, I agree with you that to some extent that digital cureecnt might work under some condistions or new regulations by some major economic forces. However, I still think it is not going to be sustainable trend. Sooner something new will replace it. - Imane 5 months ago
Hassan Qudrat-Ullah I agree with you that Gold is king all the times. We can check the historical developments of oits proces. The tredn is upward over the decades. I am not sure how Bitcoins can do the same. - Ali 5 months ago

I don't think Bitcoin will ever replace Gold. But I do own both Gold stocks and I own Bitcoin!

Reverend Sarah Garner
6 months ago

I think Bitcoin is a fad. Gold will never lose its luster and acceptance as a safe haven for investment. Also, the asthetic value of Gold is much appealing than Bitcoin to mots people.

Tahir Iqbal
5 months ago
Yes, Tahir Iqbal, I agree that austhetic appeal of Gold is higher. - Hassan 5 months ago
Well, Hassan Qudrat-Ullah, it is amazing to see how big investments are being made in Bitcoins despite the hudge unknown attached to this. - Tahir 5 months ago

Forbes just published an interesting article about this stating that "Bitcoin Is Like Gold … Just In The 1970s"
Do you agree with this? Any thought?

Paolo Beffagnotti
5 months ago
Without any tangible asset to back it up, it appears to be a fad. - Ali 5 months ago

Have some input?