Gold and bitcoin enjoy a curious relationship. On the one hand, there is a significant crossover between investors in both, particularly from libertarians who don’t trust the U.S. dollar. But on the other hand, initiatives such as #DropGold have sought to position bitcoin as a more portable, divisible and scarcer form of gold. Can bitcoin and gold co-exist, or does the supremacy of the one threaten the other?
Bitcoin and Gold – Allies or Enemies?
Lately, bitcoin vs. gold has been presented as a zero sum game in which only one asset can thrive at the expense of the other. Grayscale Investments, creators of the “Drop gold. Buy bitcoin!” campaign, make it clear where their loyalties lie. “It’s not that gold is bad. It’s just that bitcoin is better,” they venture. This is is a matter of some debate, especially given that bitcoin’s utility as a gold-like store of value is fiercely contested within the cryptocurrency community.