In the question of which alternative asset reigns supreme as a defensive play for 2018 – both Bitcoin and gold have so far disappointed.

It’s been a rollercoaster ride for Bitcoin, while Gold has not moved significantly at all. Each of these asset classes target different audiences and markets, yet we once postured a bet which would demonstrate as a better store of value.

We now look into the events that have transpired over the past seven months and revisit our position of whether gold or Bitcoin still offers promise as a defensive counter to play.

Bitcoin started on a high note at around US$17k USD [having peaked at $20k] sometime early January 2018, and it has been more or less downhill ever since.

Gold, on the other hand, traded in a very narrow band of between US$1200 to US$1365, - that’s a range of only US$154.70.

Meanwhile, Bitcoin had a range of US$13,000 – which gave room for the wild swings and volatility. Bitcoin is obviously not for the faint-hearted.

2018 so far has been a weak year for gold, [depending on which currency you price it] but it was a worse year for Bitcoin. Gold started off with a rally in late January when it hit a high of US$1365.40 but was unable to sustain the momentum.

Bitcoin has been on a free fall since then – from nearly $20K in January to US$6,500 this July. If you had invested US$100,000 in January in either gold or Bitcoin, good luck holding until the year ends [HODL – Holding On for Dear Life].

Gold and Bitcoin attract different sets of investors that are on the other side of the spectrum.

Gold attracts the traditional investor while Bitcoin attracts the possibly forward-thinking technology savvy investor.

They have specific appeals to different kinds of people – one looking for a traditional, historic store of value while the other is leveraging on technology and as a ‘digital’ store of value.

It’s just a matter of preference to where to place one's trust – would you put that trust in gold or Bitcoin, or would you put that trust in fiat currencies or the central bank.

Venezuelan's and Iranians, we are sure, have strong opinions here.

The fact is that both gold and Bitcoin have performed poorly this year – is this just symptomatic that both gold and Bitcoin failed to gain traction and gather in believers to forward their cause and appeal as a better investment alternative?

Perhaps as an analogy, gold and Bitcoin are like ‘Style versus Fashion’.

Gold is like a classic style that endures the test of time while cryptocurrencies behave more like fashion; ethereal in behaviour, nuanced by emotion.

When investors doubt the security of major financial systems or merely want to diversify their portfolios, they turn to the likes of gold or Bitcoin.

Yet the cryptocurrency has since fallen by 60% since the start of the year, and gold prices are becalmed or just stuck.

The proverbial battle then between which is the best alternative asset class has to go to gold – as it has proven its stability. Although it has not done much – it has not eroded its value as Bitcoin has.

In Gold, we can still trust.

Just ask any Iranian; as priced in Iranian Rial, Gold is at an all-time high.