Gold has been around for thousands of years, in most recent ones, as a reserve and safe-haven asset. But it remains impractical in a number of ways, ways in which Bitcoin has succeeded.
Because of this, Bitcoin is set to get a chunk if not the whole of gold’s business in the years to come.
In the crypto community, there has always been a differing expectation on where Bitcoin’s price is going. In general, most believe, the current $20K ATH is conservative.
Most predictions range from $50K, all the way to $1M. All these predictions however rest on its ability to achieve mass adoption.
In the last 10 years, this has been growing and depending on when certain price targets need to be reached, it needs to keep growing.
One of the easiest ways to get investors interested in Bitcoin is by capturing it as a safe haven asset.
For thousands of years, this has been the case for gold and its reserve now runs in the trillions. Bitcoin, regarded as the digital gold, could climb to such status and potentially more.
Research firm Weiss Crypto Ratings notes that if Bitcoin could get a third of gold’s safe-haven business, it would rise 20-fold. With current prices at around 9K, this would take Bitcoin all the way to $180,000.
This fall into most analysts’ predictions including PlanB and Anthony Pompliano, two of the most prominent Bitcoin advocates.
Weiss Ratings further notes that the possibility of Bitcoin capturing this business could happen in the next decade.
Safe Haven Narrative
But is Bitcoin really a safe haven asset. Although it was designed as such, the year 2020 has put this into question. For starters, Bitcoin prices should not correlate with traditional assets such as equities prices.
Despite this, countless times, Bitcoin has dumped in correlation with equities.
Arguably, the COVID-19 pandemic offers unique challenges such as the need for cash. And it is because of this that even gold has suffered and failed to rise in the same safe haven narrative.
Bitcoin Better Suited Than Gold
If Bitcoin can rise to truly become a safe haven, it would not be far fetched to think it would take more than a third and could possibly overtake gold.
This is because Bitcoin offers so much more than gold. While gold only offer safe haven, Bitcoin offers decentralization and flexibility.
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