A comparison between an asset that has stood the test of time, and a cryptocurrency with a bright future.

1. Gold vs
Bitcoin
Cryptolio Article
July 2020
Prepared by: Cryptolio
40 Bank Street, Canary Wharf, London
info@cryptolio.org.uk
instagram: Cryptolioltd

2. Inflation
Bitcoin has performed exceptionally well for a variety of reasons, one of
which being the fear of inflation behind investors decisions. People are
becoming increasingly concerned about high double-digit inflation, or
hyperinflation, since they have seen massive quantities of token money
generated out of thin air, and it is intuitive that this will debase currency.
This intuition appears to be playing out right now in front of our eyes.
The upset
Bitcoin toppled Gold as a far more convenient and flexible investment than
any other alternative, to swap "Fiat" into when you want to and must do it
now.
The ideology behind investor behaviour to do with the transition from Gold
to Bitcoin has alot to do with the generational switch which diverted
natural gold 'Haven' investors away from their precious metal. To add, the
demand for gold from a Covid-hammered jewellery trade and undermined
by distressed selling from hoarders caught up in financial difficulties
created by the pandemic. These factors have ultimately suppressed the
performance of gold.
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GOLD VS BITCOIN

3. Points
Economically
While investors usually rush into assets like silver and gold during times of
geopolitical and economic instability, Bitcoin's restricted quantity of 21
million makes it a reliable store of value and a type of "digital gold." The
price of gold has historically mirrored the health of the world's economy,
and it is frequently considered as a significant safe haven asset in times of
uncertainty.
Despite the fact that the global economy has been recovering from the
effects of a pandemic, governments' enormous stimulus will ultimately
wear off.
GOLD VS BITCOIN
03
- Gold is less volatile.
- Gold is in control of futures market.
- Gold is a physical good compared to a non fungible.
- Bitcoins market capitalisation sits at $556,744,725,112, which is roughly
around 2.5.% of Gold's total market capitalisation ($11.6 Trillion).

4. Conclusion
04
While Bitcoin may provide higher profits, its volatility makes it more difficult
to consistently locate appropriate entry opportunities. It means that the
sentiment for gold remains positive, as fear and uncertainty could remain in
place for the next couple of years. Printing huge amounts of money will
ultimately lead to inflation, and gold will benefit from the devalued
currencies, entering the bull market. Will Bitcoin continue to cut into gold's
proportion of global investments and rise?
Time will tell, but we should expect greater volatility in Bitcoin in the next
months, as well as a lot of profit-taking and loss protection as new
participants enter the market.
GOLD VS BITCOIN