{"id":93776,"date":"2026-01-31T15:34:16","date_gmt":"2026-01-31T12:34:16","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=93776"},"modified":"2026-01-31T15:35:19","modified_gmt":"2026-01-31T12:35:19","slug":"experts-question-bitcoins-role-as-digital-gold","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/experts-question-bitcoins-role-as-digital-gold\/","title":{"rendered":"Experts Question Bitcoin’s Role as ‘Digital Gold’"},"content":{"rendered":"

Over the past five years, gold has outperformed<\/span> Bitcoin in terms of returns, raising questions about the cryptocurrency’s narrative as a digital version of the precious metal, according to DL News<\/a>.<\/p>\n

On Friday, the price of gold plummeted sharply<\/span> from its previously reached all-time high. Bitcoin reacted with a relatively modest decline, yet over the past year, its value has dropped by about 20%.<\/p>\n

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\u201cBitcoin has never been a reliable haven; it is much more volatile than gold and subject to multiple double-digit declines,\u201d said Nansen analyst Jake Kennis to the publication.<\/em><\/p>\n<\/blockquote>\n

Proponents of the first cryptocurrency often position it as a digital store of value akin to precious metal, citing its limited supply. Indeed, over the past five years, Bitcoin’s price in dollars has increased by 150%.<\/p>\n

During certain periods, the cryptocurrency’s prices moved in tandem with gold, such as during the 2023 banking crisis in the US. However, for the most part, Bitcoin’s dynamics correlate with other volatile assets, especially tech stocks.<\/p>\n

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\u201cIn certain scenarios, it exhibits haven characteristics, but in essence, it remains a risky asset, not \u2018digital gold\u2019,\u201d Kennis believes.<\/em><\/p>\n<\/blockquote>\n

Senior Researcher at HashKey Group Tim Sun highlighted another factor related to liquidity. According to him, the problem with the \u201cdigital gold\u201d concept lies in the different pricing logic.<\/p>\n

Investors in precious metals focus on macroeconomic imbalances and sovereign credit risks. Against this backdrop, Bitcoin remains sensitive to high-frequency trading and leverage use. Those hedging against global economic risks do not focus on the digital asset, Sun added.<\/p>\n

It was precisely leveraged trades that hit Bitcoin in October, when shortly after reaching a high of $126,080, a wave of record $19 billion liquidations<\/span> led to a sharp price drop. Since then, the cryptocurrency has struggled to regain its position, mostly trading below $100,000.<\/p>\n

In recent months, some experts, such as former BitMex CEO Arthur Hayes, have promoted Bitcoin investments as a \u201cdevaluation trade\u201d\u2014a hedge against fiat currency depreciation. However, in January, gold and silver surged amid a weakening dollar, while the cryptocurrency significantly lagged behind them in performance.<\/p>\n

Next, a Global Reserve Currency Role?<\/h2>\n

In January, Canadian billionaire Frank Giustra reiterated<\/span> his criticism of the Bitcoin community for aggressively promoting the digital currency in a cult-like manner. <\/p>\n

He noted that active proponents regularly changed the narrative based on market conditions. The entrepreneur outlined the main milestones of the coin’s \u201cidentity crisis\u201d:<\/p>\n