Bitcoin's not a safe haven. But neither is gold right now

The price of gold has fallen four percent today, continuing its price slide from last week.

Gold has a longstanding reputation as a hedge against uncertainty, with its price traditionally rising when other stocks are falling. Bitcoiners argue that the same applies to Bitcoin: that it is designed to counter an economy that prints money at will, and where inflation is rampant. They call it ‘digital gold’.

This narrative has come under strain over the last week. As the economy has fallen out of the sky, so has the price of Bitcoin. It is now down more than 50% from $9,600 to its current value of $4,770.

However, gold has been following the decline of the stock markets too. After rising 30% over the last year, it has dropped by 11% over the last nine days, seeing further declines today.

“Things are so bad that even gold is not a safe haven,” tweeted Bovell Global Macro, a hedge fund based in the Cayman Islands.

Few investments are performing well right now; the only exceptions are cash and certain stocks, such as products that support remote working.

Despite this, goldbugs remain certain that its status as a safe haven is secure.

According to the Telegraph, traders have been selling gold to cover losses in the stock market—or to buy stocks at a discount. And that, once the market rebounds, the prices should bounce back.

Peter Schiff, CEO of Euro Pacific Capital, tweeted: “Gold is falling because investors are clueless as to what is coming. Their mindset is similar to that of central bankers. They have no idea how bad the consequences of the current monetary & fiscal policy mistakes will be. When they figure it out en masse, gold will skyrocket.”

Despite Bitcoin’s price drop, Bitcoiners are arguing the same thing. “Bitcoin is the world's greatest hedge to this,” Tyler Winklevoss, CEO of crypto exchange Gemini, tweeted, referring to the Fed’s decision to cut interest rates to near zero.

That is, if either Bitcoin or gold ever recover.