Digital gold and real gold: who wins?

We already discussed the possibility of using Bitcoin as "digital gold", but somehow avoided the gold itself. This is wrong: with all our respect for cryptocurrencies and the certainty that they will be the backbone of the global economy for the foreseeable future, gold is now one of the foundations of today’s fiat economy.

Traditionally, it is considered a "safe haven" for investors and for those who simply want to keep their funds in the face of political risks and inflation.

Over the past year, gold has grown steadily, following the rise in global tensions. There was a rule that until now is strictly observed: the more problems in the world, the more expensive gold.

The growth of gold was greatly facilitated by the problem of American public debt. Its size has come to a level beyond which not only return but also maintenance becomes problematic. Consequently, investors are already wary of viewing traditional US Treasures as safe haven and are looking for alternative investment opportunities.

Gold is supported by central banks, which are actively buying it. Bitcoin, like other cryptocurrencies, does not yet have the authority to enter a traditional central bank portfolio. In these circumstances, bitcoin and other cryptocurrencies may well fall with rising global tensions.

But Bitcoin, largely due to the successful ETF, is significantly ahead of gold at the return on investment. However, gold, in terms of return on investment, is inferior to cocoa, as well as shares of Amazon and Apple. However, gold should not be considered an asset aimed at high investment returns. Its main task in a crisis is to protect from losses.

Ahead of us, we will certainly see a competition for the role of "safe haven" between the gold digital and real. So far, natural precious metals have a clear advantage over cryptocurrency. But I believe that on the horizon of a few years, the situation may be reversed.  

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