For years, gold has been a safe haven staple for investors when considering a physical store of value that cannot be duplicated like fiat money and its immunity from short-term interest rate decisions by the Federal Reserve. However, some cryptocurrency experts posit that Bitcoin could supplant gold as a store of value over time.
“We would expect over time for some of the people using gold as a store of value to switch to Bitcoin,” said Lou Kerner, a founding partner oat CryptoOracle
As of now, Bitcoin bulls are hoping to see the digital currency break out its current $6,000 support levels after it dipped below the $6,000 mark in recent days, but has risen over 8% since . Bitcoin’s current price stands at $6,484.74 as of 4:45 p.m. ET–up 0.55% the past 24 hours.
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After reaching a high of $20,000 late last year, the value of Bitcoin has fallen over 60%, but Kerner thinks this volatility is par for course with any new asset introduced to the capital markets.
“We really think that isn’t something that’s brand new in terms of being different,” said Kerner. “We see new assets come–junk bonds–if you take a look 40 years ago when (Michael) Milken created junk bonds, it was extremely volatile like what we’re seeing with Bitcoin today.”