Does gold and silver have anything to do with the trend of bitco
bitcoin, a blockchain based digital currency, is often regarded as a global safe haven asset like gold. In this age of global turmoil, even gold has become unreliable and may be confiscated as India has. Some people have begun to think that bitcoin can replace gold, because bitcoin not only has the reserve capacity of gold, but also has some capabilities that gold does not have, such as low handling charges, rapid transfer capacity, decentralization and so on. With the increasing popularity of bitcoin and the decreasing volatility, the status of gold has been threatened
will bitcoin shake the status of gold?
gold has a long history, almost as long as the history of human civilization, and has withstood numerous tests in history. Bitcoin is less than a decade old, but its value has risen sharply. There is no support behind bitcoin. Of course, since the end of the gold standard, there has been no support from other currencies, except that there is no support from the central bank behind bitcoin. It's hard to predict whether bitcoin will exist in the next decade, a hundred years or even a thousand years.
some analysts said that the rise of bitcoin was mainly e to the capital and currency restrictions of China, India, Venezuela and other countries, which prompted people to buy e-money to maintain their savings, and also promoted investors to keep buying
so far, investors can't help asking whether bitcoin will replace gold as the largest safe haven asset
Ian Bezek, a professional trader, believes that bitcoin and gold have their own strengths, but gold has a greater advantage at this stage
Ian Bezek pointed out that bitcoin is highly accepted in some countries with serious capital controls, such as Argentina, where it is difficult to transfer assets abroad
e to China's economic slowdown and asset outflow, RMB devaluation occurs. Bitcoin is mainly used to convert RMB assets into overseas assets, which is much more convenient than gold
this is not bad news for gold, because the popularity of bitcoin means that gold, which is also a safe haven asset, will also have an opportunity to rise.
money is widely accepted as a medium of exchange. Gold is classified as money, which can be traced back to the early capitalism. At that time, gold could be used to exchange anything, but it didn't play much role. Gold is often in short supply. As a tradable tool and asset currency, it can be exchanged for a certain amount of US dollars
bitcoin has now become a means of online and offline payment, which has been accepted by many countries, but it has not been accepted by the whole world
2. The two are not irreplaceable: gold was used a long time ago, but it was rarely found and created by substitutes like gold. Bitcoin has many substitutes. Who knows what other encrypted electronic currency and technology will destroy the current market
3. Gold is a commodity, but bitcoin is not
gold is a basic commodity or hard asset that can be used in business, and can be used as a material to proce other commodities. People can also use gold for physical delivery and then make it into some other form for use. Although bitcoin is storable, it is not physical and cannot be held, felt or transferred
4. Are bitcoin and gold risk averse
bitcoin and gold are rare, their prices may be volatile, and each of them serves as an alternative investment to those who lack confidence in fiat money and monetary policy. Bitcoin trading is not as easy as gold, because people have to buy bitcoin through online trading platforms or invest in over-the-counter bitcoin trusts.
the trend of bitcoin is forming a "modern gold standard". Many people who are worried about the stability of credit currency or eager to protect their assets before the next financial crisis are keen on this kind of electronic currency
e to the convenient trading, anonymity, value preservation and other characteristics of bitcoin, many investors rush into the bitcoin market and give up the gold market. Therefore, the sharp rise of bitcoin is unfavorable to the gold market
when the expectation of unknown risks is more and more strong, the hedging property of gold will be highlighted.
Bitcoin's popularity means that gold, which is also a safe haven asset, will also usher in a rising opportunity
gold is a traditional wealth inheritance asset, which is easy to carry and store, and has a higher recognition. Although bitcoin has its advantages, people's trust in it is still not high. As a wealth storage tool, bitcoin faces many risks, such as government regulation, bitcoin code problems, and other electronic currency competition, which can lead to its value becoming zero
Before the 1970s, the price of gold was basically decided by governments or central banks, and the international price of gold was relatively stable. In the early 1970s, the gold price was no longer directly linked to the US dollar, the gold price was graally marketized, and the factors affecting the gold price were increasing. Specifically, it can be divided into the following aspects: the gold stock on the earth: there are about 137400 tons of gold in the world, and the stock of gold on the earth is still growing at a rate of about 2% every year
annual supply and demand: the annual supply and demand of gold is about 4200 tons, and the annual new output of gold accounts for 62% of the annual supply
cost of new gold mining: the average total cost of gold mining is slightly less than $260 / oz. Due to the development of mining technology, the cost of gold development has continued to decline in the past 20 years
political, military and economic changes in gold procing countries: no doubt any political and military turbulence in these countries will directly affect the amount of gold proced in the country, and then affect the world gold supply
Central Bank's gold selling: the central bank is the largest holder of gold in the world. In 1969, the official gold reserve was 36458 tons, accounting for 42.6% of the total surface gold stock at that time. In 1998, the official gold reserve was about 34000 tons, accounting for 24.1% of the total gold stock that has been mined. In terms of proction capacity, this is equivalent to 13 years of world gold proction
because the main use of gold has graally changed from an important reserve asset to a metal raw material for jewelry proction, or to improve the country's balance of payments, or to curb the international gold price, the central bank's gold reserves have declined greatly in both absolute and relative quantities in the past 30 years, The decline in the amount of gold mainly depends on the gold market to sell off inventory reserves of gold
for example, the Bank of England's large-scale selling, the Swiss central bank and the International Monetary Fund's preparation to rece gold reserves have become the main reasons for the decline of gold price in the international gold market
There is no direct link between gold and bitcoin
neither of them is money: money is widely accepted as a medium of exchange, and gold is classified as money. To a large extent, it can be traced back to the early capitalist period, when gold could be used to exchange for anything, as a tradable tool and asset currency, to exchange for a certain amount of US dollars
bitcoin has now become a means of online and offline payment, and many countries have accepted this way, but it has not been accepted by the whole world
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unlike all currencies, bitcoin does not rely on specific currency institutions to issue. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, And the use of cryptography design to ensure the security of all aspects of money circulation
the decentralized feature and algorithm of P2P can ensure that it is impossible to artificially control the value of bitcoin by mass manufacturing. The design based on cryptography can make bitcoin only be transferred or paid by the real owner
This also ensures the anonymity of money ownership and circulation transactions. The biggest difference between bitcoin and other virtual currencies is that the total amount of bitcoin is very limited and it has a strong scarcitygold, silver, copper and bitcoin all rose sharply, indicating that people began to invest in some metals and digital currencies, which is a distrust of the US dollar Internet finance is an emerging economic phenomenon with rapid development, which will have a profound impact on the economy. Among them, bitcoin has certain representativeness and particularity. Bitcoin is not proced from traditional financial institutions, but from Internet institutions, with low transaction cost, universal participation and obvious liberalism. However, bitcoin has its particularity in Internet finance, because it directly affects the legal system and shakes the foundation of Finance and economy