This is a very interesting topic. I agree with what you have said about BTC as a replacement for Gold and how it is better. But I don't know if it will happen any time soon. I think a lot of banks and big corporations have invested too much into gold for them to let it happen. Who is going to catch all the gold once that happens. But it will be a scary scenario to think about, since a lot of countries in the Middle East rely on the value of gold.
They could easily switch to BTC. And we honestly have no idea if sovereign wealth funds have invested in it yet.
It will be interesting to watch.
I have no idea how easy it is for them to switch to BTC. If there is a mass movement, who will be the one ending up with all the gold that might be worth less because of the lower demand?
Gold is no different than anything else...supply and demand. Yes a decline in demand could affect prices but it could be in different ways than you describe.
We will see gold run as the threat of war approaches and confidence in gov't collapses. Post 2024 could see a nice run in gold for that reason.
That makes sense. I guess that run up could make some companies sell a few, and increase their BTC holdings.
With treasuries whether companies or sovereign wealth funds they tend not to play the markets. They buy and HODL. If they decide to move on from gold, they will do it. I dont think companies have much in gold but central banks and sovereign funds do. They could divest out of gold into BTC.
It might take some time for the acceptance at that level. I have a feeling some of the recent decisions like the accounting standards in the US changing and the Spot ETF add legitimacy to the holding of it.