During the 2008 GFC, gold plunged more than 30% initially. This isn’t because gold failed as a store of value, or lost its safe haven status. Investors wanted liquidity over everything else and fled to cash in a panic. In March 2020, gold plunged alongside Bitcoin due to this 'liquidity crunch' - and it should be noted that gold lost 3 times the entire market cap of Bitcoin in its own value.
From a mile away I can see the value transfer towards Bitcoin happening as digital native millennials grow up and inherit wealth. Will they buy more gold like the boomers, or will they prefer something that speaks to their generation personally? Time will tell.
Also prudent to keep in mind that gold has thousands of years of history and consensus behind it. Bitcoin is just 11 years old. It's doing very well as an emerging asset class. I wouldn't write it off just yet. New things are always uncomfortable and scary at first.
Ask yourself this: in a world where every developed nation on earth is cutting rates, creating massive stimulus packages and undertaking quantitative easing - where do you park your money? 100% equities? Or 99% equities and 1% Bitcoin? There's no right or wrong answer. It's all down to risk preference.
I see BTC as either going to zero, or going much much higher than current levels. If it succeeds, then it could approach a market capitalisation similar to gold.
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