A few years ago, cryptocurrencies made a dramatic entrance into the world of finance. Since then, it has continued to grow spectacularly and exponentially, until a few months ago, when prices fell sharply, prompting investors to shelter their money in more durable and secure assets such as gold.

Cryptocurrencies : the future of finance ?

Cryptocurrency, sometimes called crypto, is a form of digital or virtual currency that uses the cryptographic system (blockchain) to make transactions more secure. 

Cryptocurrencies are not issued by any regulatory authority and have no central issuing authority. They use a decentralised system to record transactions. The most famous is Bitcoin.

It has also been very popular for a number of years, as a new investment opportunity with potentially high returns. Transactions are fast and inexpensive on a global scale. 

On the other hand, investing in cryptocurrencies carries a high risk of capital loss, as their value can fluctuate dramatically in a very short space of time. There is a simple explanation for this: it is subject to various influences, such as speculation or hacking, unlike gold in particular, which remains fairly stable. 

For example, the cryptocurrency has been in a crash since November 2021: the value of Bitcoin has been divided by three in just a few weeks. This spectacular fall has caused this virtual currency to lose a great deal of credibility, and it has thus lost its status as the "currency of the future". 

This highly speculative financial instrument has a value that is not attached to any tangible asset. In the eyes of most players in the financial world, cryptocurrencies are in no way a means of hedging against inflation and do not represent a safe haven, unlike gold.

Gold or the last pillar of security on the financial market ?

Gold is a precious metal and one of the oldest traded assets. It existed long before the financial markets were created. 

As a result, investors are particularly fond of the yellow metal because it offers a wide range of potential returns. 

The quote of gold is also affected by a number of factors. As a safe haven in times of uncertainty or financial crisis, investors are turning to this precious metal on a massive scale to protect their assets from market fluctuations. 

The higher the demand, the higher the price of gold, making this precious metal a reliable asset, with every country holding a certain reserve.

In addition to its stability, the yellow metal's appeal lies in its prestige, which has spanned the centuries, and its reserve value.

Investors therefore prefer to invest in gold through the purchase of bullion coins, modern coins or ingots, the latter having become a veritable pillar of the financial markets.

Does cryptocurrency have a future against gold ?

Although cryptocurrencies are appealing because of the transparency and security of their transactions, they face a number of challenges, particularly in the face of a market as stable as gold. 

Cryptocurrencies are not managed by any financial authority. The significant risk of fraud calls into question the future of this emerging market and the principle of digital wallets.

However, these two forms of currency can be complementary.

What's more, the yellow metal has a proven reputation as an intangible asset. Cryptocurrencies, on the other hand, bring a more modern and technological dimension with immediate accessibility.

As a result, the coexistence of gold and cryptocurrencies offers interesting, diversified and strategic investment opportunities for investors.