Rosland Gold

Call us to speak to a Gold Specialist
0800 902 0000

  • Home
  • Gold
    • Proof Gold Coins
    • Graded Gold Coins
    • Limited Edition
  • Silver
    • Bullion Coins
    • Proof Coins
    • Graded Coins
    • Limited Edition
  • Exclusive
    • Formula 1® Coins
    • Ayrton Senna
    • Michael Schumacher
    • Wiliams Racing
    • British Museum
    • PGA Golf Tour
    • Lawn Tennis Association
  • Limited Edition
    • Sovereigns
    • Sovereign Sets
    • Twin Sets
    • 1oz
    • Other Sets
    • Other Weights
  • About gold
    • The story of gold
    • Why buy gold?
    • Guide to Buying
    • What to buy?
    • Quality assurance
    • FAQs
  • News & Blog
  • Media
  • Contact
  • Racing
Home>Blog>Bitcoin Volatility and Gold

Bitcoin Volatility and Gold

Blog

15 Dec

Many observers have stated that the seemingly non-ending rise in the value of Bitcoin has diverted a significant amount of investment dollars away from gold as a perhaps better form of wealth protection and accumulation.

This is despite gold’s record over thousands of years as an excellent safe haven against currency depredations through war, plague, famine, inflation and economic collapse, to name but a few.

Others have considered the rise of Bitcoin as a total economic illusion and the epitome of an investment bubble – and I put myself in these latter ranks – but I have certainly been proved wrong.

Over the years Bitcoin has been in existence, it has gone through various growth phases and collapses, although so far the latter have proved to be relatively temporary in duration. The price of a single Bitcoin has, over a matter of around five or six years, achieved an enormous growth in value and made huge fortunes for those who have exited and got their buying and selling timing right.

A BTC Bitcoin has risen to over $60,000 at one time, but for an asset that has nothing behind it but computer code, one can easily understand Bitcoin skeptics.

These include some well-known economic brains out there, who consider it a total financial anomaly verging on a scam. It has also, in a somewhat worrying contrast, attracted some proponents who have dubious past financial histories.

In many ways, Bitcoin could be considered a gigantic Ponzi scheme. As long as buyers pour money into it, its price will keep on rising.? Indeed some seemingly astute financial brains, who are not necessarily dishonest in expressing their financial views, have touted an almost infinite price potential for Bitcoin and other cryptocurrencies.

However, I have been brought up to believe in the old, and well-proven, adage that if something seems to be too good to be true, it almost invariably is, and I would place Bitcoin firmly in this category.

Bitcoin can be prone to enormous short-term value swings, as it did recently, when it saw its price almost free falling down to the low $40,000s.

OK, still a huge price for what is effectively a piece of code on a computer, but also around $20,000 short of its peak of less than a month earlier. It has since bounced back, but remains prone to similar meltdowns as we have seen in the past. The latest meltdown is one of several this year.

Bitcoin is often promoted, among other things, as a wealth protector, but in truth it could be considered a gamble on its continuing price rise. There are plenty of ‘pundits’ out there who will tell you it is poised to rise to unimaginable heights.

However, some of these will have vested interests of some kind or another in trying to persuade you to invest some, or even all, of your accumulated wealth into cryptocurrencies. But, it is sometimes difficult to separate these from the true honest believers in the crypto universe.

Gold, on the whole though, is less prone to wild fluctuations in value. It may be going through a weakish phase at the moment (perhaps a good buying opportunity?), but even in its worst temporary price collapse has never fallen by near 20% in a single day, or 30% in a month.

Gold, in contrast to Bitcoin and other cryptocurrencies, has stood the test of time. Even in its darkest days gold retains some value. Bitcoin may not be able to say the same thing in the midst of a global financial collapse.

So, by demonstrating its vulnerability to enormous rapid price collapses, as happened recently, Bitcoin may have generated some doubt among the crypto faithful. Gold may not have the potential to make you super-rich, but it does have the attribute of helping to protect what you already have. In 5,000 years, we will see if Bitcoin can say the same.

by Lawrence Williams

Lawrence Williams

Lawrence (Lawrie) Williams is a highly regarded London-based writer and commentator on financial and political subjects, specializing in precious metals news and commentary. He graduated in mining engineering from The Royal School of Mines, a constituent college of Imperial College, London. He has contributed articles on precious metals to the Financial Times, Sharps Pixley, US Gold Bureau and Seeking Alpha among others.

This article can be viewed on the Rosland US website here.

Previous Post: « Gold and Silver Double Whammy
Next Post: Gold Has Stood the Test of Time »

Footer

Company

  • All Products
  • About Rosland
  • About Marin Aleksov
  • Media
  • FAQs
  • Contact

Information

  • Guide to Buying
  • What to buy?
  • Customer Agreement
  • Terms of Use
  • Privacy Policy

Contact Us

Finsgate, 5-7 Cranwood Street
London, EC1V 9EE
United Kingdom

enquiries@rosland.co.uk

0800 902 0000

Company No. 08895417. Registered Office: Finsgate, 5-7 Cranwood Street, London, EC1V 9EE, UK.
‘Rosland’ is a trading name of Rosland Capital Limited.
Copyright © 2022 Rosland

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Download Rosland Book of Gold

Complete the form below and download Rosland’s Book of Gold for FREE (84 pages).

* For more details about how we use your information, please see our Privacy Notice.

Complete the form below and we will post you a FREE Rosland Book of Gold (84 pages, hardcover).

* For more details about how we use your information, please see our Privacy Notice.

Send your enquiry to buy with cryptocurrency

* For more details about how we use your information, please see our Privacy Notice.