“With their meteoric price rises in 2017, cryptocurrencies garnered the attention of even the most unsophisticated investors.

Amid the growing hype, some even floated the idea that cryptocurrency could one day replace gold as one of the world’s most widely accepted investment assets.

If cryptocurrency were to displace gold’s investment case, the implications for gold prices would be devastating. 40% of gold demand relates to investment, so a shift in investment from gold to cryptocurrency would be a seismic shock.”

Inton and his team created a framework to assess the threat of a crypto takeover. They focused on five main areas:

  • Liquidity
  • Functional purpose
  • Scarcity of supply
  • Future demand certainty
  • Permanence

“Through this framework, we conclude that cryptocurrency does not and will not challenge gold as a safe-haven asset class.”