• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
Bitcoinist.com
No Result
View All Result
Nexo

Is Bitcoin Digital Gold? The Federal Reserve Tears Narrative With New Report

Nick Chong by Nick Chong
2 years ago
in Bitcoin
0
Advertisement

If you’ve been following Bitcoin for any period of time, you likely know of the narrative that the cryptocurrency is some form of “digital gold.”

The idea goes that because the asset has similar fundamental characteristics to the precious metal — both are decentralized money, scarce and hard to create, not controlled by a central authority, globally-accepted, and fungible — Bitcoin will become a gold-like asset with time, both in size and price action.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

According to the Federal Reserve’s Kansas City branch, however, it’s way too early to even mention this narrative. In fact, the central bank branch ripped apart the sentiment in a recent report that went largely unnoticed by the crypto community.

Bitcoin Isn’t a Safe Haven… Yet: Federal Reserve Branch

In a note published last week on April 15th, the Federal Reserve Bank of Kansas City claimed that Bitcoin is decisively not a safe haven, noting that the asset has acted more like a risk asset than digital gold.

The central bank branch cited Bloomberg data, which shows that Bitcoin, during periods of “stress,” operates with a positive correlation to the S&P 500 index to a level “significant at the 5% level.”

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

On the other hand, during periods of stress, 10-year Treasury bonds and the price of gold has operated with a slightly negative correlation to the S&P 500, showing that BTC has not achieved safe-haven status.

Bitcoin behaves more like a risk asset than a safe haven, according to a new bulletin from the Kansas City Fed. That comparing gold, 10Y, and bitcoin is completely normalized is incredible. https://t.co/8Vf8uBi9mU pic.twitter.com/ywSUsYDGOP

— Zack Voell (@zackvoell) April 20, 2020

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.

It’s Getting There

Although many agree with the Federal Reserve in that Bitcoin isn’t digital gold, it’s not digital gold yet. That’s to say, if the cryptocurrency hasn’t achieved the “digital gold” or safe-haven status already, it’s getting there.

In April’s edition of Bloomberg Intelligence’s “Crypto Outlook,” a key theme was that Bitcoin is slowly maturing towards trading like gold does, a sign that it is becoming digital gold.

The commodities desk specifically pointed to the adoption of the CME’s BTC futures, the decreasing volatility on a macro scale, the growing correlation between gold and the cryptocurrency, and the growing number of users to back its assertion that Bitcoin is slowly becoming digital gold.

Not to mention, with the block reward halving which will arrive in what estimates suggest is under 30 days, Bitcoin’s inflation rate will begin to almost mirror that of gold, which may accelerate this ongoing process. Because as it stands, BTC has the inflation rate higher than, around double of, most fiat currencies of the developed world, which is presumably hampering its attempts at becoming a digital scarce asset.

Buy Bitcoin Anyway, Analysts Say

Even though Bitcoin isn’t digital gold yet, analysts have still said to buy the cryptocurrency in tandem with the precious metal due to macroeconomic trends.

For instance, Arthur Hayes, BitMEX CEO, remarked in a blog post that he thinks that investors should buy BTC and gold for the ongoing monetary regime shift, whereas money is becoming increasingly easy to get due to ease central bank policies.

Photo by Gian D. on Unsplash
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for many years now. My pieces and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

bitcoin miners

Bitcoin Miners Sold 5,700 BTC During July, New Report Finds

8 hours ago
Bitcoin

Bitcoin Miner Revenue Slows Down As BTC Price Slumps Sideways

10 hours ago
Crypto

Crypto Markets Have ‘Hit The Floor,’ JP Morgan Says, As Bitcoin Nears $24,000

14 hours ago
Maximalists Could Use A Different Route, Says Bitcoin Core Contributor

Maximalists Could Use A Different Route, Says Bitcoin Core Contributor

15 hours ago
Craig Wright

Craig Wright Uses ‘F’ Word Against Interviewer In Asserting He Invented Bitcoin, During TV Guesting

16 hours ago
Bitcoin Bearish Signal: Leverage Ratio Spikes Up

Bitcoin Bearish Signal: Leverage Ratio Spikes Up

1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.