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Bitcoin vs Gold: Understanding Safe-Haven Assets in a Volatile World

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When investors are most unsure, they reach for assets that retain their value during market turmoil. For institutional and individual investors in Africa, including Nigeria, gold has been the go-to haven for several years. More recently, Bitcoin has been increasingly touted by its advocates as a digital alternative to gold because of its decentralized architecture, capped supply, and rising international profile.

Bitcoin vs Gold: Understanding Safe-Haven Assets in a Volatile World

Bitcoin vs Gold

In reality, matters are far more nuanced. Although Bitcoin certainly constitutes a profoundly important development in the field of digital money, it is not a stable store of value at this time. Instead, its price dynamics more closely resemble those of risk assets, such as major stock indices and speculative technology stocks.

Given the inflation pressures, currency devaluation, and exchange rate instability that encourage diversification beyond traditional financial instruments in Nigeria, the question is: Which asset can reliably preserve wealth? To understand what makes an asset a safe haven, one needs to be clear on the definition. A true safe haven preserves purchasing power during crises, maintains demand across economic cycles, and retains liquidity under stress.

Gold has met these criteria time and time again throughout the centuries and across geopolitical events. Bitcoin, in relative contrast, has shown high volatility, strong correlation with global risk sentiment, and rapid speculative inflows and outflows. These characteristics position it closer to a high-risk growth asset than a defensive hedge.

Why Gold Remains the Primary Safe-Haven Asset

Gold has been a store of value for millennia. Its value is independent of any government, central bank, or digital infrastructure, and of any external platform. The price of gold mainly responds to currency weakness, geopolitical tension, and macroeconomic uncertainty. When inflation grows or currencies lose their purchasing power, gold usually appreciates. This can be clearly seen in Nigeria in recent years, as inflation and a weakening Naira have led to increased domestic demand for gold as a means of capital preservation.

The stability of Gold is not accidental. Deep global liquidity, central bank participation, and sustained demand from industry and jewelry markets all underpin it. These structural characteristics reduce speculative volatility and create price behavior that, relatively speaking, is smoother during periods of global market stress.

Bitcoin Has More With Risk Assets

Bitcoin is often referred to as “digital gold” because of its limited supply and decentralized architecture. However, it behaves more like a high-beta market instrument in terms of price action. When global markets are higher and technology stocks are outperforming, Bitcoin tends to appreciate strongly, while it declines with equity indices when risk sentiment is poor.

For instance, during global risk-off events such as major central bank tightening cycles, Bitcoin has plunged along with stock markets. This is consistent with speculative capital exiting high-volatility assets first when liquidity tightens. A safe-haven asset should behave differently. It should either remain stable or appreciate during market uncertainty, not decline with broader markets.

Bitcoin’s sensitivity to leverage conditions, liquidity cycles, and risk appetite precludes it from being viewed as a defensive portfolio asset at this time. It remains a speculative growth asset, with its price driven by sentiment, innovation cycles, and capital flows from both retail and institutional traders seeking momentum opportunities.

Nigeria’s Inflation and the Search for Stability

The Nigerian economy has experienced its fair share of runaway inflation, currency turmoil, and foreign-exchange pressure. Against this backdrop, the difference between a speculative asset and a true store of value becomes material. Most Nigerians like Bitcoin because it is accessible, internationally mobile, and free from local currency constraints. Features like these make Bitcoin a valuable alternative for transactions and savings, especially when access to banking is limited or capital controls limit currency movement.

However, the ability to move capital does not translate into its value being preserved. Wealth protection requires stability. Gold provides this stability through centuries of price memory and broad demand. Bitcoin offers mobility and the growth potential, but mobility must not be confused with safety.

Complementary Rather Than Substitutive Roles

Gold and Bitcoin do not compete directly; they serve different roles within a portfolio. Gold is a foundational asset for stability, while Bitcoin can be used as a speculative vehicle, diversification tool, or to get exposure to digital innovation, but only as a controlled percentage of one’s capital. For most traders and investors, Bitcoin is an appropriate allocation, balanced by assets that maintain value regardless of global liquidity conditions.

A common framework amongst professional portfolio managers today is to consider gold a core defensive asset and Bitcoin a satellite holding of high conviction, which is sized according to one’s personal risk tolerance.

Stability vs Growth Potential

Gold stores value through stability and resilience in the long term. Bitcoin offers potential growth, but it is highly volatile and sensitive to global risk sentiment. For both investors and traders that want to protect capital while maintaining strategic flexibility in Nigeria, these will make a difference. Understanding the respective role of each asset leads to better portfolio construction and more sustainable financial outcomes.

Bitcoin is a powerful innovation and an important part of modern financial evolution. Gold remains the foundation for wealth preservation. The right balance does not depend on a question of preference but of purpose.

To start using the JustMarkets Trading app, simply register and download it on your Android or iOS device.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Experts Reveal a Steady Decline of High-severity Incidents Over the Years

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According to the ‘Anatomy of a Cyber World: Global Report by Kaspersky Security Services’, there has been a noticeable decline in the percentage of high-severity incidents over the past few years.

While 2021 recorded the highest proportion at 14.3%, 2025 experienced the lowest in six years at just 3.8%. This trend indicates that many attack attempts were quickly detected and effectively mitigated by Kaspersky MDR experts, preventing their severity from escalating beyond medium levels.

High-severity incidents are defined as attacks involving direct human involvement that result in a significant impact on the customer’s IT infrastructure. In 2025, the number of such incidents detected by Kaspersky MDR decreased by 19% compared to 2024, highlighting improvements in early detection capabilities and more effective remediation efforts among Kaspersky MDR clients.

A detailed analysis of the root causes of these incidents in 2025 reveals the following insights:

Human-driven attacks accounted for approximately 23% of high-severity incidents. Although this represents a slight decrease from 2024, they continue to be the primary cause of serious breaches.

Kaspersky detected such attacks in nearly 21% of customers, demonstrating that motivated adversaries persist in bypassing automated defences. Despite advancements in automated detection tools, these highly skilled attackers still find ways to evade security measures.

Confirmed cyber exercises like Red Teaming made up over 23% of incidents. When activity is verified as part of security testing, it’s often classified as infrastructure false positives, though customers frequently report them as incidents.

Social engineering ranked third, responsible for over 15% of high-severity attacks and affecting nearly 18% of organisations. These are classified as high-severity when successful and not automatically remediated, often leading to security awareness recommendations.

Security policy violations constituted just under 14% of all cases, involving legitimate accounts performing suspicious actions like data exfiltration. Malware incidents represented less than 12%, while artifacts from past attacks, or APT traces, were found in over 7% of cases. Vulnerability detection, though not core focus for Kaspersky MDR, was reported in fewer than 5% of incidents.

“The decline in high-severity incidents highlights the critical importance of adopting a proactive cybersecurity strategy. Human-led solutions such as Managed Detection and Response (MDR) and Incident Response remain essential in combating sophisticated, human-driven threats.

To further enhance the effectiveness and efficiency of in-house security teams, organisations should incorporate advanced, automated solutions like Extended Detection and Response (XDR), which provide improved visibility and enable faster responses.

Additionally, leveraging SOC consulting services can assist in building a robust Security Operations Center from the ground up or optimising an existing one for maximum performance.

An integrated approach to hybrid security operations empowers organisations to detect threats early, contain them swiftly, and ultimately prevent severe breaches from occurring,” comments Sergey Soldatov, Head of Security Operations at Kaspersky.

 

 

 

 

 


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Google, UpSkill Universe Relaunch Hustle Academy to Bring Free AI Skills to Africans

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Google and UpSkill Universe, Sub-Saharan Africa’s leading AI and business skills training partner, have announced a major redesign of the Google Hustle Academy programme.

For the first time, the free training initiative is open to everyone, not just business owners. The new curriculum is focused on equipping individuals and entrepreneurs with practical AI skills.

Small businesses are the engine of Africa’s economy, creating over 80% of jobs on the continent. To help them grow, the Hustle Academy was launched in 2022, providing bootcamp-style training on business strategy, digital skills, AI, and leadership. The program has since trained over 18,000 SMEs, with many reporting increased revenue and job creation.

Now, as AI reshapes the job market, the program is evolving. The 2026 edition is built for anyone in Sub-Saharan Africa, including employees, students, and jobseekers, who wants to use AI to advance their career.

To meet the needs of a diverse audience, the new format includes short, 60-minute webinars and more immersive, high-impact bootcamps. These sessions are laser-focused on putting AI to work immediately in areas like digital commerce, marketing, and growth strategy.

Speaking about the academy, Gori Yahaya, Founder & CEO UpSkill Universe said “The 2026 Hustle Academy is designed to close the AI Skills gap with hands-on training that is short, focused, and immediately useful. AI is reshaping how businesses win and how careers are built, right across this continent.

“We’re excited to renew our partnership, now in its fifth year with Google, combining their global AI leadership with our deep regional AI expertise. The next wave of AI leaders will come from this continent. We are making sure they are ready.”

The Hustle Academy initiative has strengthened digital competitiveness across emerging African economies by enabling SMEs to move beyond AI awareness to practical implementation, positioning them for sustained growth in an increasingly AI-driven business environment.

“We believe that the future of Africa’s digital economy lies in the hands of individuals and entrepreneurs alike. Our new strategy focuses on scaling reach by training individuals in the latest AI-centered tools and techniques,” said a Google representative.

 


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Lagos Govt Drags Top Firms to Court Over Billion-Naira Tax Debts

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Lagos State has dragged 45 individuals and firms, including Bi-Courtney Aviation, DAAR Communications and Leaders & Company, to revenue court for tax debts running into billions of naira.

Lagos Govt Drags Top Firms to Court Over Billion-Naira Tax Debts

Lagos Govt

Bi-Courtney, operators of Murtala Muhammed Airport Terminal Two, faces N38.7 million claim; DAAR, behind Africa Independent Television, owes N22.4 million; ThisDay publishers Leaders & Company allegedly skip N67.1 million.

GMT Energy Resources tops corporates at N145.8 million, followed by Sheriff Deputies at N132.1 million; others like Heyden Petroleum, AA Rescue, BRT operator Primero also listed.

Individuals owe N13.5 million to N35 million each.

Attorney-General Lawal Pedro said suits followed ignored notices, aiming to enforce laws and fund infrastructure.

More defendants: IENG Nigeria, James Fisher, V Care Diagnostics, Venture Garden, Saro Africa, Barry Callebaut, Native Media, First Consulting, Eyowo Payments.

Compliant taxpayers post-notice escaped prosecution; defaulters risk penalties, interest, jail.

Pedro urged prompt filings and payments.


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