Priorities change: Aussies switching to Bitcoin from Gold

Oliver Noah

The world is changing at a rapid pace and some new assets are gaining incredible popularity. With the development and the massive technological progress, digital currency has become one of the major topics of discussion and focus for investors as well as for traders. Bitcoin has set and broken its own records within only several days and it is only about to bring even more surprises. 

The value of the digital coin is increasing and more and more people are investing in it, while companies are completely switching to crypto payments and transactions. Observing Bitcoin behavior is the new hobby and activity of the traders as well as for the billion-dollar companies. The recent jump of the Bitcoin after Tesla bought 1.5$ billion worth of Bitcoin is one more legit proof for that. 

Many people think that Bitcoin is the second gold, while others evaluate Bitcoin as even more precious. Those two assets are similar in some terms. None of them can be printed, both of them are decentralized and can not be controlled by the government, yet Bitcoin is taking over the global market at the speed, none of the assets has managed before. 

Even Australia, which is the second-largest producer of gold, is more eager to invest in Bitcoin rather than in shiny metal. Actually, Australians are investing in gold, although in the digital gold aka Bitcoin. The report which was published yesterday involved a survey of more than 2,000 respondents, all of them being investors. The survey outlined that more investors are up to investing in Bitcoin rather than in any metal including silver and gold. 

Among the respondents, 12.6% of investors answered that they have recently bought the crypto asset, while only 12.1% invested in any of the precious metals. The biggest portion still belongs to stocks, with 63.6% of the surveyed investors being involved with them. 

One more interesting feature is that more than half of the investors who have recently bought Bitcoin are first-time buyers following the March 2020 market crash, which was the outcome of the global pandemic. And almost 100% of those buyers are so-called holders, who are not planning to sell the crypto asset any time soon. 

Bitcoin has exceeded the “store of value” role, which was previously dominated by gold. According to some industry experts, Bitcoin is the second gold and is going to top the industry within the following decade. While there are many discussions around Bitcoin, some of them being positive while others negative, we might come across some eyebrow-raising comments in the vein when it comes to the traditional financial heavyweight personas. 

Anthony Scaramucci, who is the founder of the SkyBridge Capital identified Bitcoin as being better gold than the gold itself. A similar tone of voice was observed in the renowned investor and real Vision founder Raoul Pal, who characterized the behavior as practically eating the whole world. Though the definition behind these words was not very positive. He further explained that Bitcoin is basically destroying the whole world and he has never seen anything like that before, especially when it comes to the fact that the asset is changing in value in accordance with the comments and likes by the tech industry giants and mainstream institutions. 

Some institutions are treating Bitcoin practically on an equal basis as gold. Earlier this month an executive at the asset management firm CCB International Securities published the statements where the company revealed its recent activity of selling almost one-third of its gold supplies in order to buy Bitcoin. 

While the overall hype around the crypto asset, especially during the global pandemic and economic crisis is not yet fully uncovered, the valid reasoning behind it still exists. Just like gold, Bitcoin is inflation-free, decentralized, and finite, thus it is the perfect store of wealth and value and guarantees anonymity and security, which became very important in the global digitalization process. And who knows perhaps in the following 5-10 years Australia shall become the world’s second-largest Bitcoin producer.