[2018-02-28] Is Bitcoin The New Gold?

[cybersofts]

Is Bitcoin The New Gold?




Bitcoin’s role as the new gold – a safe haven for investors – continues to hold merit.

A correlation emerged between gold and cryptocurrency prices late last year as investors began trading gold for bitcoin. Analysts expect the trend to continue, despite the recent decline in bitcoin’s price.


Precious Metal Capital Diverts To Bitcoin

Thomson Reuters analysts, in their 2017 Gold Survey released in January, noted the rising cryptocurrency prices in December diverted significant amounts of capital from precious metals. The report said retail investors have a shorter investment horizon nowadays, and many were unable to resist the temptation to get on board with cryptocurrency.

Christopher Louney, RBC Capital Markets strategist, said the development – a potential correlation between gold’s value and cryptocurrency prices – is fairly recent, reports Fortune. He said he has noticed a potential correlation between gold’s value and cryptocurrency prices.

While there was no relationship previously, Louney said the trend emerged late in 2017 and continued into early 2018—indicating that as bitcoin’s price soared in quadruple digits, investors could have been offloading gold to buy cryptocurrencies.

Louney stressed the correlation is minor—not enough to move gold prices, and not enough to say that investors are presently considering bitcoin as gold’s replacement. The macroeconomic factors that have traditionally impacted gold prices continue to dominate the playing field, such as stock market performance.

Louney said he expects gold prices to end the year lower than they started, around $1,303 on average for the year, mainly due to rising equity returns.


A Long Road Ahead

Bitcoin, besides being volatile, is still a relatively unknown asset compared to other investment assets. Gold, by comparison, is well established with institutional investors and has plenty of liquidity.

While bitcoin trading volumes totaled to just over $3 billion in daily trading recently, gold trading volumes hit $250 billion a day, according to the World Gold Council.

The bitcoin-gold correlation could increase over time, said Looney. The evolving relationship also means the converse could occur, whereby bitcoin investors cash in their cryptocurrency in hard times for gold as a less volatile asset.

In a report sent to the bank’s clients in January, Goldman Sachs analyst Zach Pandl wrote that the rapid increase in demand for bitcoin has been triggered by the growing dissatisfaction with regulated monetary systems and the current banking infrastructures.

In the long-term, as cryptocurrencies mature and evolve into a major asset class, Pandl said digital currencies like bitcoin will pose lower returns but demonstrate a high level of stability, like gold and other safe-haven assets.


Source: https://www.ccn.com/bitcoin-new-gold/

[Taki]

Such kind of topic appeared on Bitcoin discussion board several times. This post is just some crypto enthusiast's opinion and nothing more. The main opinion stays the same - gold will never be replaced, by some other metal maybe, but by such unsure and unproved thing as bitcoin - never.

[Basmic]

The price of gold remains high even now. Do you remember what gold prices were until the middle of 2000? Bitcoin allows you to concentrate funds that will then be financed through ICO promising projects. Will end the monopoly of multinational corporations. That's why the authorities are struggling with the ICO more than a cryptocurrency. I think that the price of gold and cryptocurrencies will continue to grow. We are expected to fall in the price of shares of enterprises that do not meet modern requirements.

[BitHodler]

I think that the price of gold and cryptocurrencies will continue to grow.

Gold will indeed continue to increase, although it being in a much slower fashion. If we look at one major contributing factor for gold to have gained more value, then we have to put governments stacking up gold on top of the list.

I am of believe that in the coming 10 years, Bitcoin will continue to outperform each and every asset effortlessly. It may even result in a situation where traditional assets will experience an outflow of capital due to Bitcoin.

If even a small percentage of that capital flows into Bitcoin, it will be enough to push it closer to that $250,000 mark. On the other hand, it's not fair to compare Bitcoin's daily volumes with gold's daily volumes.

It's basically (at this point) one of the least liquid markets (Bitcoin), versus one of the most liquid markets (gold) ~ not fair at all.

[figmentofmyass]

This post is just some crypto enthusiast's opinion and nothing more. The main opinion stays the same - gold will never be replaced, by some other metal maybe, but by such unsure and unproved thing as bitcoin - never.

a few years ago, i would have said the same. but the times, they are a changing.

a recent JP morgan analysis said that BTC could emerge as a traditional safe haven asset alongside gold:

Bitcoin has the potential to rival gold as a safe haven to store wealth, analysts believe.

JP Morgan’s Nikolaos Panigirtzoglou believes the cryptocurrency, which has soared in the value over the past year, could become a genuine new asset class.

also, gold's weak performance during BTC's late 2017 rally led many analysts to conclude that BTC and cryptocurrencies were taking market share away from gold.

[amwer]

Bitcoin’s role as the new gold – a safe haven for investors – continues to hold merit.
A correlation emerged between gold and cryptocurrency prices late last year as investors began trading gold for bitcoin. Analysts expect the trend to continue, despite the recent decline in bitcoin’s price.

[chenbo*)]

In terms of perceived value, bitcoin may indeed be the new gold, a safe haven in times of great turmoil. Bitcoins volatility however is something that needs to be tamed. Golds value does not jump up and down all over the place unlike bitcoin.

[Ozero]

In terms of perceived value, bitcoin may indeed be the new gold, a safe haven in times of great turmoil. Bitcoins volatility however is something that needs to be tamed. Golds value does not jump up and down all over the place unlike bitcoin.

I think that bitcoin's volatility will always be manifested, and the higher its price, the greater the amplitude of price fluctuations will be manifested. This bitcoin feature can ultimately destroy it, if bitcoin reaches very high price values ​​and some negative information will be launched and mass panic will begin. After all, people will be very afraid of losing their high assets in bitcoin and it will be much more sensitive to react to negative information.