Gold has served as a store of value for thousands of years. Due to this, investors have widely used it as a hedging tool against the effects of recessions and inflation often caused by geopolitical tensions. In light of recent events such as the COVID-19 pandemic and, more recently, the military crisis between Russia and Ukraine, many investors have sought alternatives to gold and other precious metals as hedging options. As we approach a digitized age, it is a prerequisite that alternatives to gold are equipped to deal with the future. In this search for a contender to challenge gold’s dominance, Bitcoin (BTC) has shone the brightest.

A spike in the price of gold is usually an indicator of anxiety within traditional equity markets, with the current consensus among investors being that gold is currently overbought. Prices of gold have reached up to $2,000 as investors weigh up the geopolitical and economic ramifications of the Russia-Ukraine conflict.

During this same period, on the other hand, Bitcoin and other cryptocurrencies have increased capital funding. Research firm Fundstrat said venture capital buyers invested approximately $4 billion into the crypto space during the last three weeks of February 2022. An additional $400 million was poured into startups within the crypto space in the first week of March 2022. This increase in funding suggests that global investors are seeking more exposure to a space that they believe could withstand the consequences of the Russia-Ukraine conflict.

Related: Fighting economic warfare with crypto’s double-edged sword

The ongoing conflict has seen both populations suffer economically. The military activity within Ukraine has led many businesses to close, which, naturally, has hurt the