Gold Is More Volatile Than Bitcoin - So What?

Today everyone is talking about gold becoming more volatile than Bitcoin. More precisely, gold's 30-day volatility is around 44%, while BTC's volatility is about 39%.

In the discussions I'm reading today, one dominant view keeps popping up: this level of volatility is unacceptable for a safe-haven asset. And interestingly, this argument mostly comes from people who usually write about cryptocurrencies.

But hold on. What is considered a safe-haven asset within the crypto community itself? I've always thought of Bitcoin as one. And its high volatility has never stopped it from being treated that way.

Take a look at the chart published by Bloomberg showing gold's volatility surpassing Bitcoin's. It clearly shows that Bitcoin's volatility has often been much higher than gold's current level. So what - does that suddenly make Bitcoin less reliable?

Bitcoin is seen as a safe-haven asset because after every drawdown, its price eventually recovers and moves even higher. And this has been happening for 17 years now.

Gold won't stop being a safe-haven asset just because of higher volatility either. Especially since the same chart shows that gold's volatility has already exceeded Bitcoin's not that long ago.

So nothing extraordinary has happened. Both gold and Bitcoin remain just as reliable.

And on rabbit.io, you can reliably swap Bitcoin for tokenized gold and back again - at the best rates, without registration, and with no limits.