Cryptocurrencies – including bitcoin and stablecoins – are not an alternative to gold, nor do they pose a threat to its role as a safe-haven investment, an expert with the World Gold Council said.
John Reade, the senior market strategist and head of research at the association, said that long-term demand for gold remains well supported amid mounting concerns over US dollar assets, persistent trade and geopolitical tensions, and the economic fallout of tariffs.
“Bitcoin and other digital assets have been marketed as an improved version of gold … as ‘gold 2.0’ or ‘digital gold’,” Reade told the Post. “That’s a fallacy, in my opinion.”
He pointed out that cryptocurrencies tend to move in tandem with equities – unlike gold, which typically acts as a hedge during market volatility – and stressed that these digital assets do not represent “any risks or comparison” to gold.
“I’m not concerned about digital assets being a threat to gold,” he added on Thursday. “I wish the proponents of digital assets would stop marketing them as ‘gold 2.0’, when they very clearly have different characteristics.”
His comments came as market interest in stablecoins and other digital currencies continues to grow, alongside a fresh rally in gold prices amid heightened Middle East tensions and a weakening US dollar.
