In the past few weeks, both Bitcoin and gold have attracted investors who have flocked to safe haven assets due to trade wars and an uncertain geopolitical environment. While traditional investors prefer investing in gold, the discovery of fake kilogram gold bars in the vault of JP Morgan Chase (NYSE:JPM) points to a forgery crisis. While gold owners need an expert to confirm the authenticity of their holding, Bitcoin node operators do not need any, which is a huge advantage.
The government has confiscated gold holdings of the public in the past, hence, there is a possibility that it can do it again if the economic situation worsens. However, decentralized digital currencies are not controlled by any government, hence, they offer greater protection of personal wealth compared to any other asset class during upheavals. After the recent anti-government protests in Hong Kong, businesses and individuals have switched to digital currencies, which shows how it is being preferred over fiat currencies.