Bitcoin and Gold – Outlook, Volatility and Safe Haven Diversification
– Recent performance of Bitcoin and Gold
– Price outlook
– Bitcoin, China and capital flight
– Exchanges of value?
– Can bitcoin rival gold as a safe haven?
– ‘Bitcoin vs Gold’ or ‘bitcoin and gold’?
– Importance of diversification
– Conclusion: A monetary and financial revolution?
Recent performance of bitcoin and gold
What does the recent volatility and surging price of bitcoin mean for the future of the crypto-currency and does its recent outperformance mean that it may supplant gold as a safe haven currency? Can bitcoin rival gold as a safe haven? Do bitcoin’s recent price gains herald gains for gold in 2017?
Bitcoin in USD – 1 Month via Coin Desk
2016 was a pivotal year for both the gold price and the price of bitcoin. In dollar terms, both made new gains that have not been since in the last four years. However, the fledgling digital currency greatly outperformed gold.
Gold climbed 8.6 per cent in dollars last year, outperforming both US Treasuries and the US Dollar itself. Despite ending its four year decline and gold being higher in all major currencies, sentiment in the media and among investors remains tepid towards gold as it had a poor second half to the year and failed to end the year above its July high of $1,366.