Everybody says Bitcoin is Gold 2.0 is the new digital gold and will replace gold, an inflation hedge like Gold. Bitcoin & Gold properties are matching except for 1 thing:
- Bitcoin seen as Risk On Asset instead of Risk Off like gold, so in times of economic uncertainty Gold price soars because its risk off and in uncertain times stock market crashes & crypto crashes.
So if Bitcoin is store of value like gold and does the same as Gold then why isn't it classed as Risk Off status like Gold?
In times of economic uncertainty where risk on markets crashing everywhere Bitcoin should be the hedge king right rising up and not be correlated to risky stocks correct?
Lots of people like to make the comparisons between gold and crypto but there are real differences. If you have gold stored in a safe in your house, there's a fairly good chance you know where it is at all times. However by the very nature of crypto, there is an infinitesimal small chance that someone could gain access to your wallet through several methods, from the opposite side of the world and it could be near impossible to track them if they emptied it. Gold also has real world practical uses like serving as a great non-magnetic and conductor material for electronics, while also being sought after for it's properties in the form of jewelry - as it has for many centuries.