Depending on whom you pose the question to, Bitcoin is becoming the new haven asset. While it remains to be seen if cryptocurrency can replace traditional solutions, such as gold, over the coming years, remains to be seen. Some people are predicting Bitcoin has already replaced bullion as the top asset, whereas others refute the logic.

Can Bitcoin Dethrone Gold As An Asset?

While the opinions on this topic may be divided, the bigger question is whether or not it even matters. Both Bitcoin and bullion have their appeal to investors and speculators, and there is no reason to believe they can’t coexist for the foreseeable future.After all, bullion has been around far longer, yet somehow managed to maintain its appeal without too many problems.

To put the comparison into perspective – futile as it may be – gold has been around for over 4,000 years. The concept of bullion has been appealing for the longest time, due to its scarcity. Even though gold is still being used in electronics, jewelry, and other products, the demand for this commodity other than as an investment vehicle has dwindled significantly over the years.

Moreover, one could argue the point as to what gives gold its intrinsic value when it is not in high demand other than by investors. Considering gold is still being mined in significant quantities every single year, it is somewhat of a mystery how scarce his commodity is, to begin with. Bitcoins are also being generated every single day, but the vast majority of the supply is in circulation already, and its “inflation” is curbed mathematically.

That doesn’t mean Bitcoin is necessarily superior to bullion either. From a usage value, both gold and Bitcoin are virtually on the same level, as their option to spend either asset for goods and services remains somewhat limited to his very day. But the main difference is how access to gold can easily be prevented by banks and governments, whereas no one can exert control over Bitcoin and other cryptocurrencies.

To some investors, his will give Bitcoin a leg up over any other form of asset. But to the mainstream audience, Bitcoin will always be subpar to traditional assets, even when their value is declining. Both Bitcoin and bullion can easily coexist, as their differences make for a very appealing ecosystem which benefits a lot of investors and speculators around the world.

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