The gold pullback is just the beginning of Bitcoin's rise!

Against the backdrop of Bitcoin's continued rebound, gold, as the leader of safe-haven assets, has experienced a pullback, raising market concerns about the sustainability of Bitcoin's rise. However, the adjustment in gold does not signify the end of the speculation logic for safe-haven assets, but rather is a result of funds switching between different safe-haven assets.

First of all, scarcity is an important factor for gold to become an ideal safe-haven asset, but compared to Bitcoin's fixed total supply of 21 million, the proven reserves of gold are still increasing at a rate of 3,000 tons per year. Additionally, with advancements in mining technology, the production of gold is steadily increasing at a rate of 1.6% per year, while the mining costs are decreasing annually. In contrast, although Bitcoin's mining technology continues to improve and the total network hash rate is continually increasing, due to the built-in difficulty adjustment mechanism, Bitcoin's production still adheres to the halving rule every four years and will completely cease production by 2140. This essential difference in supply characteristics makes Bitcoin the first absolute scarce asset in history with mathematical certainty, while gold maintains a relative scarcity characteristic.

Secondly, in the context of the United States stopping the export of dollars for global trade, new settlement tools will gradually fill the gap left by the dollar's exit. However, gold, as a traditional settlement tool, has many limitations: on the one hand, gold delivery faces the challenge of insufficient standardization, with different grades and purities of gold bars requiring professional appraisal; on the other hand, the transportation of physical gold depends on specialized logistics and armed escort, and cross-border circulation requires customs procedures, leading to high transaction costs. In contrast, Bitcoin, as a digital asset, perfectly solves these issues: its standard is unified (each Bitcoin is fully equivalent), delivery is instant (cross-border transfers completed within 10 minutes), and costs are low (currently $2-8). Especially in high-frequency, large-value cross-border trade scenarios, Bitcoin has already demonstrated significantly greater advantages in cost and efficiency compared to traditional payment systems like Swift (with an average cost that is half of Swift's and a speed that is 100 times faster than Swift).