In recent years, crypto-currencies, Bitcoins, Ethereums and others have enjoyed such a boom that it was once thought that these new digital currencies would replace so-called traditional assets, such as gold and silver, and that they would even replace national currencies.

However, nothing of the sort has happened. On the contrary: the value of crypto-currencies has collapsed in the space of just a few months. Could this downturn mean a renewed interest in gold ? We take stock.

Cryptocurrencies in crisis

For a very long time, crypto-currencies have represented the future of investment. Bitcoin, Ethereum and Ripple, to name but a few, have been riding a wave since the 2010s, presenting themselves as a wonderful alternative to traditional investment products. And with good reason: in the space of a few years, the main digital currencies have gained in value, reaching crazy prices. This is particularly true of bitcoin, which in November 2021 was worth almost $41,000.

However, investors were soon disillusioned, and the many promises made by cryptocurrency supporters were never fulfilled. It soon became clear that digital currencies also have their drawbacks. And not the least. First of all, they have proven to be extremely volatile and unstable.

Today, these main disadvantages are confirmed, and crypto-currencies are lagging behind, confirming a situation of decay of the main crypto-currencies. As an example, bitcoin has lost almost 70% of its value in just one year. At the same time, other assets have regained their reputation. This is the case of gold.

Gold, an asset that enjoys unparalleled confidence

Many people draw parallels between the decline of crypto-currencies and the revival of gold. Indeed, there has been an unprecedented appreciation of the precious metal for over two years now.

And for good reason : gold has attributes that crypto-currencies do not, and this situation reassures many investors, even more so in this period of financial and economic uncertainty that we are currently experiencing. First of all, it has an intrinsic value, justified by a history of several millennia, unlike many other assets, including crypto-currencies.

Added to this is the fact that the yellow metal has a true safe haven status. It is an asset to which investors tend to turn in times of crisis, depending on fluctuations in gold prices and quotation. This characteristic allows this precious metal to appreciate when other assets depreciate, making gold a particularly safe investment.

It should also be noted that gold benefits from a particularly attractive tax regime for investors in France: it is exempt from VAT and there is no capital gains tax after 22 years of holding the precious metal. On sale, the seller will only have to pay the tax on gold (the precious metals tax), which amounts to 11.5% of the sale price.

These particularly interesting tax provisions do not, of course, apply to cryptocurrencies, which are subject to capital gains tax of 30% (the flat tax).

Thus, while crypto-currencies have, for several years, enjoyed a real craze among investors, this is no longer the case today. The high volatility and instability of digital currencies and the financial and economic uncertainty we are currently experiencing have resulted in a weakening of investor confidence in cryptocurrencies.

As a result, investors have gradually moved away from this asset and towards more stable assets, such as investing in physical gold.