Will gold be replaced by Bitcoin?

 Will gold be replaced by Bitcoin?

Is Bitcoin related to gold?

You can’t be right all the time. This crypto cycle, I chose to back Ether instead of Bitcoin, believing Ethereum’s higher volatility would allow it to outperform. The thesis was simple: Bitcoin would surge past $100,000, and Ether would follow with a move beyond $10,000.

True to British form, I won’t grumble too much. I did manage to buy Ether at prices well below even today’s depressed levels, so it hasn’t been a complete misstep.

That said, the final leg of the long-anticipated Bitcoin rally to $100,000 has yet to materialize—though the dream still lingers. Increasingly, however, a more unsettling possibility is coming into view: a major geopolitical crisis could be the catalyst that finally pushes Bitcoin beyond $100,000. In such a scenario, wealthy—or desperate—individuals might rush to protect their capital, driving a flight to Bitcoin.

Why is Bitcoin Gold delisted?

That risk feels plausible for two reasons. First, tensions seem to be escalating daily in the news. Second, gold’s strong performance may be foreshadowing exactly this kind of fear-driven move. 

In my view, this is now the only realistic scenario for a final upward push—and it’s not as far-fetched as it might sound. While I sincerely hope it doesn’t come to pass, gold and Bitcoin could act as early warning signals. Markets tend to move well ahead of the news, as we’ve repeatedly seen with the Federal Reserve. Every statement is dissected by analysts, so it’s no surprise that price action often anticipates official announcements.

Should I buy Bitcoin or gold?

In a similar vein, if people sensed that their side of a geopolitical conflict was heading toward serious trouble, many would move quickly to accumulate assets like Bitcoin and gold. Those with the means rarely wait until the last minute to protect their wealth.

Fortunately, this remains a hypothetical scenario rather than a certainty. Meanwhile, further down the crypto hierarchy, assets below Bitcoin and Ether continue to struggle. The latest chart comparing Bitcoin and Ether highlights just how wide the gap has become.

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 What is Bitcoin and BTC?

From my perspective, the broader crypto landscape has grown clearer. Bitcoin now stands alone as the only truly decentralized cryptocurrency. It isn’t controlled by any individual or group, whereas most alternatives—Ethereum included—have drifted away from Satoshi Nakamoto’s original vision, evolving into systems increasingly dominated by technical and governance elites.

History shows that human interference in financial systems rarely benefits the majority. Many centralized or semi-centralized cryptocurrencies have already produced disappointing outcomes. I prefer an asset that remains untouchable—free from manipulation. Yet such assets are becoming harder to find, as more projects reveal a hidden authority behind the scenes, like the Wizard of Oz pulling levers from behind the curtain.

Why is Bitcoin Gold delisted?

While gold and Bitcoin share certain characteristics—such as decentralised production, finite supply, and resistance to arbitrary inflation—their long-term correlation is effectively negligible, with the mean correlation hovering close to zero. Against this backdrop, Mr Chambers’s comment warrants consideration: “If gold wasn’t crying havoc, I’d say the crypto winter was here. But as gold is frighteningly strong, I’m not ready to sell my ETH just yet—because while gold used to be Baby Boomer Bitcoin, now Boomer gold is Bitcoin.”

Mr Chambers implies that rising gold prices may signal latent value in crypto assets. However, this interpretation oversimplifies the issue by placing too much emphasis on short-term correlations, which, statistically speaking, do not constitute a robust long-term investment thesis. The recent uptick in correlation between gold and Bitcoin is too brief to support a durable strategy. Models built on limited datasets often fail when market conditions shift: a strategy that appeared highly successful in 2023 might have produced significant losses in 2021, illustrating the danger of extrapolating from narrow timeframes.

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Who made Bitcoin Gold?

Correlation-based investment strategies rarely survive rigorous stress testing. Nvidia, for instance, shows a strong correlation with the Nasdaq-100, yet its returns diverge markedly from those of another highly correlated stock such as Microsoft. The same principle applies to gold and Bitcoin, where correlations can evaporate rapidly—particularly during market crises, as demonstrated in episodes like the dot-com bubble.

Bitcoin’s inherent volatility further complicates the comparison. Unlike gold, crypto remains a largely speculative asset, often likened to historical manias such as the Dutch tulip bubble. Gold, by contrast, has preserved purchasing power from ancient Babylon through to the modern era, cementing its role as a reliable store of value—something Bitcoin has yet to prove over comparable timescales.

While Bitcoin’s long-term potential remains an intriguing prospect, its volatility and inconsistent relationship with stable assets such as gold mean it is better viewed as a speculative investment rather than a true safe haven. Gold continues to stand on firmer ground, and investors should be cautious about placing excessive faith in correlation-driven models, which can unravel swiftly in volatile markets. Bitcoin may yet earn its reputation as the “Boomer gold” of the digital age, but its future remains far from certain.