Institutions may be diversifying their investments by selling gold and investing in crypto assets like bitcoin, which is not surprising. Because their goal is profit and with the success of MicroStrategy, the remaining companies and organizations will not want to be left behind. But I bet central banks will never sell gold to invest in bitcoin unless you can provide credible evidence. Gold is considered the safest asset in the world and with the world geopolitical situation becoming increasingly unstable, they will hoard as much gold as possible instead of selling it. They would not be foolish to sell a stable asset for an unstable and dumped asset. Because it can have serious consequences for the national economy.
Bitcoin is likely in the ballpark of 1,000x or more better than gold in terms of various money properties, such as scarcity, verifiability, transportability, divisibility, costs of holding/transporting, less need for third-party involvement, etc, yet bitcoin is currently ONLY about 10x gold's price, so it is likely that more and more folks, whether individuals, institutions (including banks) and/or governments, are going to continue to gravitate into bitcoin, either buy just buying bitcoin rather than gold, buying bitcoin derivatives, selling gold and/or selling gold derivatives.
Bitcoin has been eating gold's lunch for at least the last 13 years (I like to start my counting from 2012), and will likely continue to eat gold's lunch into the future, even though there has been some recent revival of gold's price. Sure, it might take 50-200 years for bitcoin/gold to reach the correct prices in which bitcoin is 1,000x greater price than gold.
Regarding your reference to shitcoins, and OP's reference to shitcoins, that seems to be largely irrelevant to consider that anyone woudl be using any shitcoins as a gold substitute.
JJG what are you referring to when you say that bitcoin is currently about 10x gold's price? Total market capitalization would be bitcoin = 1/10th of gold, which makes it even more attractive to investors. Since an nounce is a bit more than $3k, did you have a different unit in mind?
But anyway since 2010 or 2011, gold approximately doubled in price, which means it went 2x. In my opinion this is one of the most interesting questions which we can't get a definite answer to. How much of gold's lunch has bitcoin been eating in the last 15 years? Gold, as I said, only doubled, but where would it be if bitcoin didn't exist? I believe the market share that bitcoin took away from gold is massive. Bitcoin has disrupted this standard routine for those who are seeking value preservation and therefore just bought gold. Those times are over, not for everyone obviously, but the interest in bitcoin is growing and if something out of nowhere at that speed can make it to $2 trillion market cap, I think it is more likely it will grow to $20 trillion market cap than it will drop to $0.2 trillion market cap. There is a reason for its sustainable rapid growth and I call it sustainable because if anything, volatility could not spread enough fear to stop its ascent.
As for the shit coins that were brought up here, there is probably a lot of lobbying and insider things going on when institutions or governments announce that they will be looking into bitcoin and shit coins. Surprise surprise that MSTR is bitcoin only...