Bitcoin will replace gold as the “ultimate financial safe haven” within a generation, according to deVere Group.

The prediction from the independent financial advisory and fintech organisation comes as growing geopolitical uncertainty, including Brexit and the US presidential election, as well central banks’ historic money printing policies, are prompting many investors to urgently rebalance their portfolios.

deVere Group highlighted that Bitcoin’s key characteristics, such as its fixed supply and how transactions are non-sovereign and decentralised, are “highly attractive” for investors in an “uncertain but increasingly digitalised, tech-driven world”.

The financial advisory firm also stated that having earned the label “digital gold”, Bitcoin’s status will grow exponentially over the next two years.

“For thousands of years, gold has been the ultimate financial safe haven,” commented deVere Group CEO, Nigel Green. “It’s always been the go-to asset in times of political, social and economic uncertainty as it is expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.

“I believe that the precious metal will lose its crown as the most sought-after reserve asset to Bitcoin within a generation, particularly because the biggest-ever generational transfer of wealth – likely to be more than $60trn – from baby boomers to millennials is already underway.

“Until now, gold has been known as the ultimate safe-haven asset, but Bitcoin – which shares its key characteristics of being a store of value and scarcity – will take over.

“As the world turns ever more digital and is more and more financially dominated by those who have grown up surrounded by technology, from an investment point of view, gold will increasingly be seen as a relic of the past.”

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