Gold and other cryptocurrencies are decentralized, generally accepted worldwide 24 hours a day. Transactions through both assets are anonymous and supply is limited.

However cryptocurrencies will never replace gold and there are several reasons for this claim.

Cryptocurrencies are only forms of currency, while gold has many other time-tested usable values; from use in jewelry making up to dentistry and electronics.

  • Unlike the cryptocurrency, trading in gold does not depend on electricity. This characteristic is particularly useful in disaster situations, like hurricanes. For example: In Puerto Rico 80% of people are still without electricity because of the hurricane struck. Currently, the island's economy is based on cash. If you have gold jewelry or coins they can be converted into cash, all of it without electricity and wi-fi.
  • Gold is the most liquid means of payment, traded on a daily basis around the world. According to LBMA, London trades daily with 13.8 billion pounds or 18 billion dollars worth of physical gold. The crypto market, though rapidly expanding, has not yet reached that level. 
  • The advantage of the cryptocurrencies is that it can encourage some investors, especially millennials, in ways that gold can not. Proof of this is on the Internet. For example, you can find a series of posts and results on the bitcoin, cryptocurrencies and the blockchain, but none of the gold investments. YouTube also has a record number of reviews of the importance of publishing a video clip on cryptocurrencies.

These benefits have influenced some cryptocurrencies to record incredible annual growth, while gold has had minimal growth.

Despite these results that the cryptocurrency records every day, the fact is that digital currencies are characterized by volatility, which is why (in a conditional way) they will never replace gold.