Bitcoin cannot compete with gold as a store of value

Bitcoin started the week with a sharp sell-off. The first digital coin broke below $3,400 support to trade at $3,385 at the time of wtiting. This technical development might imply that the recovery has finished. If the coin fails to get back into the previous range $3,500-$3,600 within the next several days, the lowest level of 2018 will come into focus.

Meanwhile, the head of the investment company VanEck Jan Van Eck believes that Bitcoin investors are starting to move towards traditional asset classes like gold.

He explained that bitcoin diverted investor attention in 2017 and 2018, but now the situation looks different.

"I do think that Bitcoin pulled a little bit of demand away from gold last year, in 2017. Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin, and now it's going the other way,” he said in the interview with CNBC.

Tim Seymour from Seymour Asset Management shares his opinion. Namely, he believes that using Bitcoin as a store of value was a questionable decision.

He added that Bitcoin had lost the liquidity, and now it’s hard to discuss its viability as a store of value, while gold remained beyond competition.