Comparative Study on the Safe-Haven Asset Characteristics of Bitcoin and Gold

Abstract

With the increasingly turbulent political situation and the outbreak of public health events without warning, it will not only affect people’s physical health, but also affect the global financial market, causing the market to fall into a huge crisis, thus leading to a continued decline in the worldwide economy. During periods of financial market turmoil, many investors fall into panic and urgently need a “haven” to protect their assets. With the rise of the digital economy, gold no longer seems to be the only safe-haven option. Bitcoin has gradually entered the investors’ field of vision. Some investors believe that Bitcoin can become an emerging safe-haven asset that is as important as or surpasses gold. Based on an analysis of the safe-haven properties of Bitcoin and gold during major political and historical events and public health events, this article will clarify which of the two is more suitable as a reliable contemporary safe-haven asset and provide advice to investors.