Gold has been dropping amid fears that the coronavirus could cause supply shocks and become a worldwide pandemic. Bitcoin, on the other hand, has effectively ‘decoupled’ from the rest of the markets.

Gold is often touted as the ‘safe haven’ in times of global crisis. However, right when it was its moment to shine, gold has faltered and fallen like the rest of the markets.

Is It Really a Hedge?

Gold has tumbled and posted the worst losses since 2013 amid global panic surrounding the coronavirus. According to common wisdom, gold should be rising during this period – but it’s not.

Gold was trading for $1,682 per ounce on Feb. 24, according to Bullion Vault. However, it has sunk since then to $1,585 per ounce. Although such a drop is not drastic for cryptocurrency markets, it is a significant drop-off for the stable precious metal. When placed on the monthly chart, the dip seems significant.

The drop-off has caused some gold bugs to go into damage control. Known Bitcoin hater Peter Schiff told his followers to “buy the dip” because gold is still up more than 6.5% this year. Many were quick to point out, however, that gold has recently failed to do the one thing its advocates claim it does: be a global safe haven during times of crisis.

Gold seems to do poorly when the global crisis is not related to liquidity or inflation issues. As of now, it seems that gold will continue to slide further downward.

Bitcoin’s Moment to Prove Itself Is Here

Although some gold bugs are quick to disparage Bitcoin, the leading cryptocurrency has many advantages over gold. For example, gold ownership still relies on transport, which is susceptible to supply shocks. Bitcoin, on the other hand, is, of course, all digital. This means that in times of global panic, it can’t be held hostage by suppliers and transport.

In short, gold is performing poorly as a hedge – and this is Bitcoin’s moment to prove itself.