Why Cryptocurrencies Will Never Replace Gold

Bitcoin is probably the hottest topic in the world of finance and investments, especially since its meteoric rise in 2017. The question, however, appears to be whether or not this rise is indicative of true value. More and more people are justifying the investments in these Bitcoin and other cryptocurrencies as they claim they are an effective hedge due to the instability of fiat currencies. While it is true that a fiat money system has its weakness, it is the very reason why investors turn to assets such as gold as it provides a safety net for currency depreciation. Now, while Bitcoin and other cryptocurrencies have been widely successful, especially in recent years, it is very unlikely that they will be able to replace gold as the premier financial investment. Here are some of the reasons why cryptocurrencies will not replace gold.

 

Gold Will Always Have an Accessible Liquid Market

Gold has always been and likely will always be one of the most liquid assets in existence. You can easily convert it into cash immediately, and national borders do not hold it down. So, no matter where you travel, gold is gold, and you can exchange it for whatever the local currency is. However, when it comes to cryptocurrencies, things are much different. Yes, more and more countries abroad are beginning to accept Bitcoin and company, (Japan, in particular) it is still a long way ahead of mainstream acceptance.

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