Are Bitcoin Gains a Loss for Gold Investors?

Some people in the investment world have romanticized the lucrative and volatile nature of Bitcoin, comparing it to the California gold rush.

Now experts now see a direct correlation between gold and cryptocurrency — and that might not bode well for gold long term.

RBC Capital Markets researchers have detected a relationship between Bitcoin prices and gold flows. Because Bitcoin is an emerging asset the relationship merits further study, they note.

Meanwhile, advisors and investors say they have begun to redefine how they view Bitcoin and by extension all cryptocurrencies.

Rather than seeing crypto as a currency that replaces the dollar, it may turn out instead to be a commodity and a store of value, and thus a hedge against fiat inflation — the role long played by gold.

Throughout the investment world, there is a hope that this newfound insight will bring stability to the tumultuous nature of Bitcoin prices and crypto economics as a whole.

However, one investor has taken this correlation a step further and believe that Bitcoin is poised and ready instead to disrupt and possibly replace gold.

‘Gold 2.0’

Tyler Winklevoss, co-founder of Winklevoss Capital, has dubbed bitcoin “gold 2.0” and believes that Bitcoin can easily reach the capital appreciation of $7 trillion.

“The market capital of gold is $7 trillion. In the market capital of Bitcoin, let’s say it’s around $100 to $200 billion,” Winklevoss told Bloomberg News. “We think that Bitcoin disrupts gold.”

Despite the huge drops that Bitcoin suffered in January, some believe these constant fluctuations will soon be a thing of the past.

Benjamin Dives, chief executive of the London Block Exchange, says that he believes that Bitcoin’s volatility will come to an end this year. He estimated that one in three UK millennials will be invested in Bitcoin before the end of 2018.

Other experts believe that the volatility of Bitcoin has driven investors to the relatively less-risky arms of the gold market.

“We think increasingly people are realizing that these digital assets have much higher risk levels than the traditional safe haven asset,” says Mark O’Byrne, founder of gold and silver merchant Goldcore.

Why You Are Not Rich: Financial Misconceptions That Hurt Your Bottom Line

Personal finance is rife with misconceptions, myths, and bad advice. For many, bad advice is why you are not rich. Following the wrong advice and making bad investment decisions can

Pesticide in Milk May Be a Risk Factor for Parkinson’s

Research published in Neurology analyzed the effects of heptachlor epoxide — a pesticide commonly used in milk until the 1980s — in association with the signs and symptoms of Parkinson’s.

5 Ways to Survive and Thrive On Social Security Alone

Getting older can be a very expensive in the United States. Unless you begin saving for retirement at a young age, life can get progressively expensive as you get older.

Scientists Say This Food May Help Colon Cancer

It turns out that eating a handful of nuts daily could effectively keep colon cancer from recurring after surgery. In fact, research, from Dana-Farber Cancer Institute in Boston, suggests that

Have More in Retirement by Being Tax-Smart

Many people start planning for retirement by focusing on one primary objective: saving enough money to retire comfortably when they are ready. Taxes are something that no one enjoys paying;

Just Retired? Look at These 7 Key Financial Moves

Are you all set to bid adieu to your full-time job in 2019? If you are just retired, there are a number of things you need to do to make

3 Plant Remedies For Anxiety

An anxiety disorder can range from social anxiety to outright panic attacks. Doctors will generally prescribe medications that work on the central nervous system — like lorazepam. They may also

6 Ways to Live Within Your Means

Living within your means is undoubtedly the most important step you can take to structure your life, achieve your financial goals, and secure your future. While living it might not

7 Reasons to Stop Using Soap

The beneficial reasons for using soap may be diminishing in the sense that commercial soap is produced with so many chemicals that it could cause more harm than good. Due

Add Cinnamon To This Every Morning

For those who love to regularly kick start their morning cup of coffee with cinnamon, you're in for some good news. And for those who don’t, here’s something to consider.

5 Simple Ways to Earn Quick Cash

If there is one thing we could all use in today’s tumultuous economic environment, it is free money. While no one will pay you for doing absolutely nothing, there are

5 Items You Should Never Pay for at a Car Dealership

The typical American may more than a couple of cars within one lifetime. However, car salespeople sell cars every day and use that experience for their financial gain. When you