Bitcoin Forum

Growing mainstream acceptance of Bitcoin (BTC) as a reserve asset is having a direct impact on gold, setting the stage for a major shift in institutional allocation between the two assets, according to analysts at JPMorgan Chase. READ THE COMPLETE ARTICLE HERE: https://worldpublicityblog.com/index.php/2020/12/14/bitcoin-will-eat-golds-market-share-according-to-jpmorgan/

Bitcoin has high volatility which gold lacks and the mobility and convince makes it more durable and secured than gold. If the growth and adoption by different institutions continues thriving, gold wouldn't catch up with the pace at which Bitcoin is going.

I 'm little surprised to see this. With more adoption of crypto people are starting to see that there are better alternatives out there than gold to lock up their assets for a long period of time, or even instead of shares. Each to their own!

I know for a fact that this is only touching the tip of the iceberg and cryptocurrency will pose major problems not only for gold but entire banking and finance industry - not that that can be surprising anymore!

Definitely it can happen because the new generation were believing in bitcoin instead of the old fashion which is gold. Bitcoin is a good asset compare to bitcoin in my opinion though gold is more safety than bitcoin due to its market wherein constantly rising over a period of time. However, both gold and bitcoin has still risk especially from the hacker for bitcoin and for gold are the robbers. No, investment is really safe unless the one doing the investment is good in keeping up the asset.

Not for the quickest time, I think gold is still the world's best recognized asset. Gold has been recognized by all countries in the world while bitcoin still has different legal regulations. Gold is universal and inflation resistant and therefore has a low risk.

I am still very cautious to say that Bitcoin is being used as a reserve asset and a safe haven, and even if this is the case, to a minimal extent, it can be explained with the current coronavirus situation.

But what will happen after the crisis?

Because it will have to end sooner or later, although it will take longer for the economic side to do so.
But the question is the same: once the crisis is over, economically speaking, will this tendency to use Bitcoin as a reserve asset remain?
Will people not return to their previous assets? I.e. go back to the gold market or whatever. This is something that is more likely to happen, especially if Bitcoin makes like in January 2018 by doing a royal fall

One thing is for sure, there is a long way to go before Bitcoin eats up the gold market and I don't think that's going to happen anytime soon. Probably in a decade. Anyway, the audience for gold (generally older people) is not the same as the audience for Bitcoin (younger people).

@Josefjix

Mobility is not an argument. You don't bring your gold with you when you go to the supermarket to buy toilet paper. You either store it or sell it, you don't use it as a mean of payment like Bitcoin.
Reserve assets ≠ payment means

More secure than gold is subjective. People can hack your wallet, what will you do? Nothing. On the other side, gold can not be hacked. And if someone stole your gold what will you do? Either you store it at home and you ask your assurance for a refund or store it in a vault and the company has to refund you. Something not possible with Bitcoin.

At least they acknowledge that, given that a year ago it seems like they don’t want to deal with bitcoin even in a thousand lifetimes. It feels as if JPMorgan is invested all along, and was just looking for the best time to praise bitcoin to maximize their profits. There’s a possibility that this is true given their eagerness to shift on the greener side once bitcoin already took the limelight.

JPMorgan just saying the naked truth, because this industry just started on a good note and if this continues the world of metals will definitely experience negativity. Institutional investors are just doing their best in investment into Bitcoin and also ie with individual investors in the industry, Bitcoin will eat metals soon.

Well even a blind can see that! Gold has been a preferred asset since many years for the corporates as a reserve of cash equivalent. But in recent times millions of dollars have been invested in crypto market (mainly bitcoin) by the corporates! So it's clear as daylight!

Whatever Snappa and Greyscale has done, will be definitely followed by other corporates, if these investments don't depreciate over time! There are many companies sitting on a pile of cash but little too conservative when it comes to bitcoin! Slowly they will join the bandwagon, at least for a trial run! Probably we will see many such instances in 2021. Let's wait and watch!

I don't have even one percent doubt in the article because gold has become old schools and doesn't profit the amount of profit which Bitcoin can provide, at the same time there would be a risk factor in bitcoin about losing on your capital if you panic sell it. Bitcoin might have more market share than Bitcoin in a decade as Bitcoin has been gradually adopted by corps and we will still have people who will follow he traditional method of investing into gold as they don't want risk and happy with lesser profit.

It's already started to eat the Gold market as soon as when big corporations investing in bitcoin such as micro strategy and greyscale, and many more big companies will invest in bitcoin in the next 2 to 3 years. Not only Gold market bitcoin will bring lots of stock market share also into crypto within next 2 years. That's just my opinion.

Institutional investment is coming, because they dont want to be left behind!
Grayscale, Fidelity, Microstrategy and Paypal are leading the way and breaking
new ground in so far as "institutional investent" goes.

I'm calling 2021 to be Institutional FOMO!

As wealth transfers to younger generations Gold will be sold for Bitcoin.
The younger generation understand the advantages of Bitcoin.

I cannot verify the source info on the site you have given, but I'm curious about when they collected those inflows and outflows of BTC and Gold. After all, I'm quite concerned that many investments have been going down because people need actual money during the pandemic. It's what has happened all over the world, and everyone is affected. Those four weeks mentioned in the article didn't state when it was recorded, though.

It's definitely good news to hear that big banks like JPMorgan are predicting the future of BTC. I'm not sure if it's just shilling or not but as long as it's positive, right?

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IMO, it's quite harder to trade compared to BTC because almost everyone can buy BTC and Gold is different. You have to have accounts and verification etc., to be applicable to trade those assets.

Gold might be old school but there are far more uses that you can utilize it with than bitcoin, the price of gold might go down but it will always stay relevant, it is a precious metal after all. Not to mention, jewelers will lose their livelihood if the price of gold goes down, so they will do anything in their power to make sure that gold will stay as it is, even if companies are using bitcoin as a reserve, it still is not enough to light a candle near the enormous amount of reserves of countries like US, Britain and other influential nations. Investing in gold though is a different story, I lean more on cryptocurrency because gold is such a bitch when you want to invest in one, you need a lot of papers for your identity just to make sure that you are eligible and you can't even hold the gold, in other words, you have to pay for storage.

I don't think this is actually happening, it seems more like it is being exaggerated a lot by the media. It is a normal thing to see during bull runs that everyone including institutional investors start buying more bitcoin and increase their holdings but it is not yet replacing anything else like gold for example.
Of course the attraction grows with each bull cycle.

I disagree. It is more about bitcoin's age. The first cycle price did go up just as much and gave a lot of profit but it was unpopular. After 11 years of rising and showing all kinds of potential it is bound to have increased adoption. It is not just us who sees this kind of profit in bitcoin.

A million bitcoins sitting in one disused wallet equates to roughly twenty billion dollars at the moment if the rumours of satoshi's HODLing's are true.  If sold even for half of that price, that would have to take a fair chunk out of the spot gold market.

Things are getting positive for bitcoin this time and it's coming from JP Morgan. Just going back and remembering a few years ago, they're one of the bashers of bitcoin and then turned suddenly that they're accumulating bitcoin that they've hidden for their own sake.
Bitcoin will take every assets share in the future once most of these investors see that there's much more opportunity that their money would grow by just buying and holding bitcoin. It's an asset class although a speculative one still, a very rewarding and they will not go wrong having it.

I think Gold will always have its place as a secure physical store of value- after all it's been used as money since nearly the dawn of time. I do believe it's a good idea to hold both physical Gold and digital Bitcoin, as they both have their own pros and cons & individual uses.

And by the way if anybody's interested in buying some beautifully stunning 24K Gold and Platinum for BTCitcoin at one of the best, if not THE best values in the market- click the top link in my signature and upon sign-up you will even get $5 free towards your first purchase and, if I remember correctly, some money back from your first purchase as well!

I'm not going to be surprised though, and as I have set previously, it bitcoin would go on a 6 digits price, the money could come from another set of investors, like gold bugs or other precious metals or even oil. But I doubt that this could happen overtime though, the gold market or gold investors are huge, the probably the process might take years to finally see a paradigm shift here. And maybe majority of gold holders right now as still skeptical on bitcoin, only minority see it as an alternatives.

I think Gold will be challenged by BTC. Investerors have the choice between 2 great investments. This article about JPMorgan is also interesting: JPMorgan Predicts $600 Billion Worth of Institutional Inflow In Bitcoin (https://www.worldcoinindex.com/news/jpmorgan-predicts-600-billion-worth-of-institutional-inflow-in-bitcoin-btc)

To the best of my knowledge, I think Gold is the only major asset which can challenge Bitcoin but nowadays the table has turned and Bitcoin is now challenging Gold to the extent of taking a chunk of its market share, this is a confirmation that more people are now seeing Bitcoin as a store of value despite its volatility. In addition, all these are happening this year which is as a result of the different Institutional investors and players massively going for Bitcoin because it is evident the future revolves around it. Furthermore, I believe with more adoption from all round, Bitcoin will continue soaring high while becoming more valuable as well and thus keeping gold in check.

I don't know how bitcoin will eat gold, but I hope that gold and bitcoin can work side by side and not interfere with each market because gold and bitcoin had a different market.
Bitcoin and gold are an investment asset that will become people's option to help them profit in the future.
But maybe bitcoin will have a chance to be the next digital investment than gold as the technology still develop and bitcoin can be adopted in all countries.
Gold will still be a safe haven for people who don't want to use bitcoin, while other people who want to have another investment type will try to use bitcoin.

I can't agree with that.Bitcoin would need several years of continuing adoption by the institutional investors,in order to beat gold levels.
Bitcoin products "sucked in" 1.4 billion USD,which is a positive sign,however 1.4 billion USD is a ridiculously small amount for the financial markets,where billions and trillions of dollars are moved every day.
No analyst in the world would base his conclusions on such small amounts.
I'm wondering why JPMorgan is still so bullish about Bitcoin?Are they secretly buying Bitcoins?
Graysacle,Paypal and Cash App aren't enough for a mass Bitcoin adoption.We need the big banks to step in,if we want Bitcoin to hit the moon.

Gold is still a safe haven. I'd say safer than Bitcoin. So if one is looking for a safe haven, I believe one should go for gold rather than Bitcoin.

But in terms of competition between the two, it cannot be avoided. It is impossible that both markets won't collide in one way or another. For example, you've mentioned about profit. Which would provide you a quicker and bigger profit? Is it gold or Bitcoin? Your answer would then determine where your money goes. That's one instance of competition.

Another instance would be whether which between the two would you prefer to own. If you buy $10,000 amount of gold, are you gonna be given real gold? And if you are, is it easier to own and keep than Bitcoin? If you buy Bitcoin, would you be given real Bitcoin? The answers to these question could be additional reasons why one would prefer one over the other.

I think since the COVID-19 crash of the market the recovery of Bitcoin has made people stand up. Obviously, centuries of history with Gold but surely a good bet is seeing that market cap gap shrink.

For me, Bitcoin will always be a sound investment but I see it slowly becoming that for other people, like what gold is today.

2021-2022 period will see much much greater profit from BTC holding than gold with 99% certainty. bitcoin is a very good investment and as institutions enter market and it becomes widely accepted as times goes then I am sure than some day (probably only after some years) one will not need to worry how to sell BTC but it will be enough to buy directly goods and services with btc (probably with a small portion of BTC as it hopefully reaches 6-digit amount). I believe early adopters who have thousand of BTCs will sell  (if already not) once the price reaches higher amount and only serious players and institutions will hold great amounts of BTCs as it applies for all serious assets.

Exactly. Most people still don't understand how can Bitcoin be of any value, while gold is valuable for thousands years. It's not that hard to check whether you were given real gold, but with Bitcoin it is much more complected. No wonder people still are hesitant to believe that those numbers on their computer/phone/wallet screens can be somehow better, store-of-value wise, than pure gold.

indeed, this is the difference that stands out between gold and bitcoin. We saw how gold could not be fully owned by our control, the government would watch over us and immediately impose a written tax. while owning bitcoin is of course difficult to detect and is only known individually. Therefore, today many people are avoiding gold and turning to bitcoin. The comparison is very far, having 1 kilo of gold with 1 bitcoin, will be very worrying about holding gold rather than holding bitcoin.

People know that gold is a safe haven for their money, and they bought gold a long time ago.
Maybe people who invest in gold are not ready to invest in bitcoin because of the volatility.
Maybe bitcoin does not give a quicker and bigger profit in the short term, which is happening with gold.
But if we talk about the future, maybe bitcoin will have a big opportunity to give a bigger profit than gold.
What people search for the way to save their money is gold because many of them prefer to use traditional ways.
If you go to the jewelry shop, you will get real gold at $10k because that is what they know so far, and from what their parents told them.
But if people know about bitcoin and enthusiastic about the new technology, he will choose bitcoin as their investment.
So that will depend on each people itself.
But we are now in the digital world, which many people still do not know. But bitcoin will have its way to reach that person to join with bitcoin someday.

I think that bitcoin is a good competitor to gold and can even surpass it, since it is now more profitable to invest in bitcoin since it is not tied to anything like gold and the factors affecting the bitcoin rate are much less than gold, so invest in bitcoin