Is Bitcoin Starting to Replace Gold?

Facebook
Twitter
Telegram
LinkedIn
Gold bar on stacks of gold bullions close up

Cathie Wood, the CEO of ARK Invest, has expressed her belief that a significant shift from gold to bitcoin is currently underway among investors, primarily driven by the advent of spot Bitcoin exchange-traded funds (ETFs).

She discussed these potential asset transitions in the ARK’s Big Ideas 2024 YouTube videos which were released on Sunday, where she was accompanied by Brett Winton, the chief futurist at ARK.

Transitioning from Gold to Bitcoin Wood observed an increasing trend of bitcoin over gold. She stated, “Bitcoin’s value has been on the rise compared to gold. We are now witnessing a transition into Bitcoin, and we believe this trend will persist, especially now that there are less cumbersome ways to access Bitcoin.”

The conversation about Bitcoin started around the 54-minute mark in the hour-long discussion.

Bitcoin as a Safe Haven In addition to this, Wood also highlighted Bitcoin’s performance during the U.S. banking crisis last year, implying that it is gradually becoming a safe haven asset. “In March last year, during the Regional Bank Crisis, Bitcoin’s value surged by 40% while the KRE, Regional Bank Index, was collapsing,” she noted.

Bitcoin Enters Top 10 Assets At present, gold boasts a market cap of approximately $13.738 trillion, while Bitcoin trails with a market cap of around $912 billion, making Bitcoin’s market cap 15 times smaller than gold’s. To match gold’s market cap, given the current circulating supply, Bitcoin would need to be valued at roughly $699,000.

Despite this, Bitcoin’s recent rally above $46,000 has catapulted it into the top ten global assets by market cap.