BCA Research asserts that both gold and Bitcoin will remain attractive assets for long-term investors. However, analysts believe that the digital version of value will surpass the physical one over time, as the market gradually shifts from bullion to blockchain.
Following a 10% drop in gold prices, BCA strategists stated that the correction is nearing completion, and its appeal as a safe-haven asset remains high. They emphasize that gold continues to outperform other commodities due to the network effect. Its status as a safe asset is supported not by the metal's physical properties but by investor confidence and actions taken by central banks.
Yet, a new element, namely Bitcoin, has emerged in this equation.
BCA notes that cryptocurrency mimics gold's logic. Its value is also anchored in a network effect, albeit within a digital ecosystem. With a current capitalization of $2 trillion compared to approximately $30 trillion for gold, Bitcoin's growth potential is objectively higher.
Researchers highlight three key factors that determine gold's long-term value: the overall level of global wealth, the share of assets allocated to safe-haven instruments, and the availability of alternatives. According to them, Bitcoin is emerging as an alternative—a digital safe-haven asset that is attracting a share of the capital traditionally associated with gold.
BCA suggests that as the role of digital assets strengthens, investors will increasingly diversify their portfolios toward cryptocurrency.
Gold will continue to serve as a foundational protection, while Bitcoin will be seen as a growth instrument.
