Is Gold Losing Its Shine to Cryptos?
Let’s kick off with this: that well known Crypto – Bitcoin - is depicted as a Gold coin.
I thought that would make you smile!
Gold is important – and you can’t print it. There’s a physical supply constraint.
With Bitcoin, it’s been stated that no new Bitcoins will be released after the limit of 21 million coins is reached. There is therefore a supply limit, albeit one that in theory, it could change if more were released.
Think of Bitcoin (and other Cryptos) as well as Gold as a car. To make that car go, you need petrol.
Rather than petrol, they need capital.
Money.
Back in the day, Cryptos weren’t an option. Capital would flow to assets, such as Gold. But things have changed. Some of this capital is now flowing to Cryptos.
There’s a new kid on the block.
However, this new kid doesn’t have the experience of the older kids (Gold). So what happens when there’s a downturn? The answer’s simple.
We don’t know.
Will it go up in value (perhaps be viewed as a safe haven) or down (be viewed as “part of the problem”).
Is Gold Losing Its Shine to Cryptos?
Cryptos are clearly attracting capital. Some (but not all) of this capital might otherwise have gone to Gold. So in answering the question, yes, I think some of the “shine” has been lost to Cryptos.
But (and there’s a big but), you need to compare apples with apples.
Gold is a proven safe haven asset, Cryptos aren’t.
So until there’s some sort of “correction”, I’d see some capital that would otherwise have been flowing to Gold, finding its way into Cryptos, but if there’s a crisis and investors are given a choice, Crypto or Gold, I think a lot will choose Gold.
I therefore don’t think we really know yet.
Related: How to Invest in Gold
Should You Have Both Gold and Crypto?
If you’ve already got some cryptos, then personally, I’d probably hang on to them, we don’t know what’s going to happen. The issue I have is that I don’t currently have any and I struggle to allocate money to something I simply don’t understand.
At the end of the day, they need to be useable and if a country ever had a choice between using their own currency and a Crypto, I think they’d go with their own currency. Potentially banning the use of the Crypto, in which case you’d have to ask yourself – “how useful is it?”
Let’s go back to the question.
Is Gold Losing Its Shine to Bitcoin and Other Assets?
As things stand I think the answer is yes…..because investors are predominantly interested in returns and the return from Cryptos has been VERY good.
However, I think they’ve been investing for returns rather than “safety”….which is when Gold might “have its day”.
Now I appreciate that you invest for the future, but until the market is looking for “safety” rather than “returns”, I would expect Cryptos to do well. But (and it’s a big but), when investors are worried (really worried) about where to invest, then I think Gold will really shine.
Related: What Factors Drive the Gold Price Up and Down?
The Verdit on Gold vs Cryptos
As things stand, Gold is losing some of its shine — mainly because investors are chasing returns, and some Cryptos have delivered spectacular ones. But those flows have been about performance, not safety.
When the market shifts from prioritizing returns to prioritizing safety, Gold may well have its day. And although Gold has already risen significantly (as of September 2025), only a relatively small proportion of the market currently views it as a true safe haven. If that sentiment changes, the potential for a surge in price is very real — particularly if cryptos are not seen as safe.
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