Gold has been a safe port for those who want to grow their investments steadily due to its stability and commitment to geopolitical events for hundreds of years. Over the years, gold has always remained constant in monetary policies and even changes in the face of inflation in currencies.
If there is a hiding of assets, there is a new player in the game. Moreover, this player is not in contact with any authority, independent. Bitcoin is at the top when it comes to gold -like asset growth.
Increasing volatility
When the global turmoil or geopolitical fears are in the middle, the first thing that rises is always like gold. This is because people do not associate any of these developments in gold. With increasing gold price, Chicago option exchange volatility increases.
The Chicago option exchange is known as a stock market that measures volatility and is also called the fear index. It still has a relationship with gold, but in a stronger correlation with the waste Bitcoin. The reason for this is that Bitcoin gains the greatest value in the face of the current global confusion.
Since May 1, four increases in volatility have been observed. Bitcoin reacted much more suddenly and strongly to these increases. Now, almost six months later, Bitcoin rose by 15.5 percent, but gold increased only 1.6 percent.
Why is Bitcoin superior to gold?
As an advanced being, there are a few reasons for us to think that gold has begun to lose the title of a safe asset when things go wrong. Gold has never disappointed anyone so far, but Bitcoin, who is still new and unprecedented, takes this race ahead.
The first reason is that it is much more accessible than the bottom of Bitcoin. People can buy Bitcoin much more easily, and some of those who buy Bitcoin don’t know where to buy gold.
Crypto currencies, of course, do not have limits or they do not need to be in a physical environment. So they can be more accessible. Because they are completely digital, you do not need to keep your presence in a physical environment.
In addition, because this volatility of gold counts in flexible times and does not have another innovative opponent, digital currencies seem to replace it.
Acquisition subject
Another reason why crypto currencies win the race in front of the gold is that it is easier for them to have them under having these money. Gold has already created its own market and on a static course, on the other hand, the excitement in the Bitcoin market continues full gas.
Those who want to have gold have already acquired it, restricting these new acquisitions. Bitcoin is still an exciting and accessible product in terms of being a new product and a potential asset storage product.
If we briefly summarize why Bitcoin is in a more advantageous position against gold:
- You can get as many bitcoins as you want, you have little chance of access to gold as much as you want.
- Bitcoin does not require a physical environment, it is not restricted by boundaries.
- It has the potential to eliminate Bitcoin as a direct competitor.
- Bitcoin acquisition has spread to a much wider audience, holding a certain group.
- The gold flow is limited, the owners of the existing gold are certain and the market is not flexible. Bitcoin flow is high, easier than acquiring.
