The impact of bitcoin's rise on gold is as follows:

1. Reduce the demand for gold. Bitcoin and gold are both financial products. The difference is that gold has a history of thousands of years, while bitcoin has been developing for less than 30 years. However, the price rise rate of gold is far less than that of bitcoin.

Due to the rapid rise of bitcoin, investors will naturally buy bitcoin if the price of gold fails to rise. A large amount of money will flow into bitcoin and the amount of money to buy gold will be greatly reduced. After all, there are so many global funds. Before, there was no bitcoin, and almost no powerful variety could surpass the momentum of gold, but bitcoin broke the curse of thousands of years.

2. It weakens gold's ability as the world's core safe haven asset. I believe many people have heard that "once a big gun blows, thousands of taels of gold" means that every time there is war, people will buy a lot of gold, and the price of gold rises sharply. Finally, after years of development of the market, it has become the most core hedging asset in the world. Once there is a major risk event in the world, people will immediately think of buying gold as an asset to avoid risks.

3. Weakening the value of gold as a global reserve. We all know that behind the issuance of all currencies in the world, gold is used as a reserve. That is to say, the issuance of banknotes in various countries was established according to the Bretton Woods system in the past. Behind it, gold is used as the cornerstone. Because the value and currency attributes of gold are recognized all over the world, it has the value of non depreciation.

Now it's different. Because of the rising price of bitcoin, the value of gold as a global reserve is weakening. People are willing to believe in the value of bitcoin as a reserve asset of digital currency.

4. Weakening the hard inflationary value of gold as a global payment. In the fight against global inflation, gold has always been in the first place in people's minds, but in recent years, the price of gold is not as fast as inflation, let alone the price of bitcoin.

At this time, people will choose bitcoin as a global hard inflation asset, making gold a hard inflation asset, and its value will be greatly reduced.

5. It weakens the independent and free property of gold price fluctuation. The price of gold is closely linked with the US dollar, and the US dollar has to look at the face of the US Federal Reserve. At this time, the independent and free nature of gold has been questioned. Bitcoin doesn't look at the US dollar, let alone the monetary policy of the US Federal Reserve. It is more independent and free, and naturally decentralized.

(2021-4-10)