In recent decades, gold's reputation as the most valuable commodity in the global economy has been questioned. Although it was once used to back a variety of currencies, including the US dollar, it has not been well suited to the current economic environment. Gold has outperformed numerous stocks since then, and is a testament to its resilience and consumer trust.
However, Bitcoin is posing a threat to this position. It has greatly outperformed gold since its inception, rising from less than a cent to hovering about $30,000. There is a case to be made that Bitcoin is a direct threat to the gold market, as it is freely exchangeable, has a compelling decentralization story that appeals to millennials, and offers strong security and low transaction costs.
