Will Bitcoin replace gold? It’s a long road ahead

The European Central Bank announced yesterday evening that it would maintain the current interest rate at a record low and maintain the monthly QE scale at 80 billion euros. ECB President Draghi said that interest rates will remain at the current or lower level for some time to come. Affected by this, the global market has been on a roller coaster ride. The euro's gains have fallen. Gold fell after rising, falling more than $20 in the short term. Silver extended its decline to 1.8%, falling below the $17 mark to $16.82 per ounce, down more than 5% from its intraday high.
In comparison, digital gold "Bitcoin" performs more stable than physical gold.
Bitcoin has seen wild price swings since it was invented several years ago as supporters hope to see widespread use of the nascent technology as a digital currency, but over the past three weeks, its price has been below or on par with safe-haven gold, according to analysts at FactSet and CoinDesk.
The past 24 days have been the longest stretch in which Bitcoin has been less volatile than gold, with the last time this long was in 2010. Some believe the reduction in volatility is due to investors beginning to view Bitcoin as an asset with similar store of value as gold.
Gil Luria, general manager of Wedbush Securities, said that as Bitcoin is gradually accepted, it is gradually playing the same role as gold. For some investors, both have the function of investment preservation and risk hedging.
Luria believes that "a lot of this has to do with the acceptance of the value of Bitcoin. Previously, gold was the only refuge for investors who were concerned about the rational economy and financial system."
But some people believe that Bitcoin will still experience large fluctuations. According to Blockchain estimates, the value of the entire Bitcoin industry is about $6.6 billion. But compared with gold, it is still a small matter. The World Gold Council's daily over-the-counter gold market trading volume reaches $180 billion to $250 billion. Some analysts attribute the reduction in volatility to investors waiting for more news from the global economy and taking a wait-and-see attitude towards Bitcoin.
Phillip Kingston, managing director of financial technology investment firm Trimantium Capital, said it will take a long time for investors to truly use Bitcoin as a means of storing wealth.