Will bitcoin overtake golds place?
It might be the case investors and adopters will use both gold and bitcoin, revealing either/or debates to be more about blackening bitcoins reputation than substantial analysis. Legacy banks usually prefer status quo to radical innovation.
Are you hedging in preference to bitcoin over gold?
Bitcoin has already overtaken gold in terms of pricing and profitability. Bitcoin's volatility and it being decentralize is its major asset.
In terms of value, gold has been surpassed long back. But in terms of capital market as well in terms of user network we're yet to travel long. Gold as an commodity has been making it more valuable as it's not widely available. Here with bitcoin the technology generates the supply to the demand. Based on which volatility becomes an issue with gold users while bitcoin users love the volatility.
Not all bitcoin users love its volatility. It is beneficial only to traders. Many of the users collect coins for their accounts. For them, a price drop is a shock. Commodities trading is too slow to use bitcoin because its behavior is not predictable. It seems to me that the stability of bitcoin prices would be more positive than its volatility.