​Gold vs Bitcoin. Who will win the battle for Investor Recognition

2022 was not the best year for bitcoin. The first cryptocurrency has fallen in price by almost 64% since the beginning of the year. In this, from January to March the price of gold rose by more than 10% (up to $1985), after which until the end of October there was a decline in value — the asset has fallen in price to $1640 (a drop of 17% from the peak values in March). However, by the end of the year, the precious metal returned to the level of the beginning of the year at $1820.

Against the background of these events, a version that bitcoin could not replace gold as the most reliable asset, which would protect investors from various shocks in the markets, began to be voiced. Representatives of the investment bank Goldman Sachs said that gold will outperform bitcoin in the long term. In their view, the adoption of the first cryptocurrency should be due to the development of various ways of its real use, rather than speculative interest.

Goldman Sachs believes that bitcoin’s value proposition is based on the cryptocurrency’s potential utility, and its level of future adoption is more sensitive to changes in interest rates than gold. The price of the precious metal will be less susceptible to volatility because it is a real asset with different uses. Bitcoin, on the other hand, is more dependent on the financial situation, and it only has to find non-investment scenarios of use, the bank’s representatives added.

Vladislav Utushkin, the founder and visionary of MarsDAO, disagreed with the opinion of Goldman Sachs’ representatives. In his opinion, bitcoin has long found non-investment use cases.

“Bitcoin can be transferred for an incredibly low fee to anywhere in the world and spend no more than 10 minutes (time to form a single block). Already this makes this asset an ideal option for use,” the expert explained.

Utushkin also reminded that some countries are already considering the possibility of selling goods for bitcoin. This is the most logical step given that the first cryptocurrency is the least volatile asset in the crypto market due to its status and size.

“The very basis of gold and bitcoin in terms of fundamental value has the same premise — saving assets from inflation. Bitcoin has in fact already become gold in the crypto world and largely repeats its properties,” Utushkin explained.