FX CRYPTOCURRENCIES


alluring alternative in times of crisis, especially for the young. Surveys by Blockchain Capital last year suggested that millennials were increasingly favouring Bitcoin over gold.


Fig.2


For the young , comfortable with holding value as intangible data, Bitcoin might be a preferable store of value, and one that can contend with traditional safe haven commodities like gold.


Fig.3


the event, but is the price movement a correlation, or just coincidence?


The rise of digital gold


There are many who argue that instead of fulfilling Satoshi’s vision as a “peer- to-peer version of electronic cash”, Bitcoin in fact occupies a similar niche to gold,


48 FX TRADER MAGAZINE July - September 2018


being scarce, easy to store, easy to transfer, and only lacking


As a refuge in times of economic


turmoil, gold thousands of years


of historical precedence as a safe haven asset.


is


favoured for its stability and clear consensus on value. Bitcoin, however, is also proving to be an


In their 2017 Gold Survey released in January, Thomson Reuters analysts wrote that “the rapidly accelerating popularity and price in cryptocurrencies, such as Bitcoin…diverted substantial amounts of capital away from precious metals last year,” suggesting that the cryptocurrency is making moves on a commodity that has functioned


as a store of


value for millenia. A digital safe haven


If we are to believe the reports of mainstream media, then historic price movement shows a number of


incidents in which


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