23H·

Gold vs Bitcoin: Where does true trust lie in uncertain times?

The geopolitical situation remains tense. The diplomatic discussions and diverging interests between the USA and the EU regarding Greenland are causing unrest on the markets. Such uncertainties have historically been the fuel for "flight currencies". But how are the two major assets reacting to this?

Gold $GLDA (+0,09 %)
: When there is a political crunch, gold usually reacts immediately. It is the tried and tested "safe haven". Investors seek stability and protection against currency risks. The gold price benefits directly from the fear of escalation and remains stable or rises.

Bitcoin $BTC (-2,29 %)
: In theory, Bitcoin is often referred to as "digital gold", which should benefit from government crises. However, the current market movement paints a different picture: the price has recently fallen. Apparently, investors are not (yet) treating Bitcoin as a safe haven in this phase of uncertainty, but as a risk asset.

My conclusion: Gold is once again proving itself to be the rock of value preservation. Bitcoin, on the other hand, is currently struggling to prove this status.

What is your opinion on this? Do you see the current setback in Bitcoin as a buying opportunity or a warning signal? What do you think needs to happen for Bitcoin to achieve the same status as gold?

14 Commentaires

Stefan21@stefan_21

22H

Gold has a large market capitalization coupled with a long history - and with it the trust of the masses. Everyone knows gold in its role as a store of value.

Fundamentally speaking, however, gold's long history is also its only advantage over Bitcoin. Bitcoin is absolutely limited and is not subject to the oracle problem in a digital world.
While gold is traded via certificates for the sake of simplicity, because it is difficult to move gold quickly from A to B, there are countless parties of trust along the chain, including third-party risks.

You can easily transport Bitcoin, you can easily store large quantities - even in your head if necessary, it is forgery-proof, etc.

Bitcoin is currently still understood by far too few people.
This discrepancy between "It's the best money in the history of mankind" and "It's digital nothingness traded according to the Greater Fool principle" is the reason for its volatility and why it doesn't yet behave like a safe haven.

Bitcoin first has to earn the trust that people have in gold. Step by step.
But once it has the trust that gold enjoys, the price will be much higher.

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Artiskon@Artiskon

22H

@stefan_21 There is nothing to add to that.
What the masses don't see is that the big fish, "those at the top", are currently lining their pockets.
In ten years' time, everyone will be complaining again about the big money that leaves nothing for the little man - by then, a quarter of a century full of opportunities and possibilities for financial advancement will have passed.

I'll keep buying Bitcoin - anything else would be fatal!
I'm hoping for a nice bear market so that I can reallocate again.
Until then, save stubbornly and steadily 💪

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Pascal@Pacco93

22H

@stefan_21 I admire your optimism. But you say it yourself, Bitcoin is understood by far too few people and that won't change. The majority of people don't even understand shares and never will, so how will it be possible with Bitcoin. I'm invested in Bitcoin myself, but in the long term it won't make more than 8-9% p.a. either

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Stefan21@stefan_21

22H

@Pacco93 I think that many people underestimate the time it takes for such a completely new "magic internet money" to reach the masses.
And I believe that BTC has developed extraordinarily for its 17 years.
Not everyone will need to understand Bitcoin. Just like not everyone understands gold. I think only the tiniest fraction of gold holders think about the properties of gold and where the value actually comes from.
They see it gaining value over time while their fiat money is losing value, and that's enough.

But if we are honest, retail investors are the least interested. The states, central banks and companies are the ones whose adoption will drive up the Bitcoin price. And for everyone else, the price is the best advertisement :)

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Harald@Madhatter5566

21H

@Pacco93 Stefan is only looking for secondary debtors. Someone stupid has to take his bitcoins when he needs money. I mean real money, not just rows of numbers.

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ColaZero@ZeroSugar

15H

@stefan_21 Gold is needed for industry and jewelry. Bitcoin, on the other hand, is far too dubious. Gold is and will always be superior to Bitcoin. Why should people switch to something that only lives from hype and hasn't existed for 20 years? Gold has been valuable to people for thousands of years and will remain so. This is simply dubious, Bitcoin on a USB stick or on a wallet and then transferring from A to B. Pointless.

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Stefan21@stefan_21

15H

@ZeroSugar Hi :)
That's what I mean by the discrepancy.
Gold does not have a market capitalization of 32 trillion dollars because of its use in industry. If that were the case, steel, copper and the like would be worth significantly more than gold.

However, gold has established itself as a store of value due to its properties. If you are interested, please read my "Bitcoin for beginners part 1" on money.
https://getqu.in/HvPg4I/

The fact that Bitcoin only lives from hype may be your subjective perception, but I see it completely differently.

Well, you can transfer Bitcoin digitally - directly from person to person. Without a third party. I don't know what's pointless about that.

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ColaZero@ZeroSugar

14H

@stefan_21 That's exactly it, without a third party, don't you think it will be exploited by criminals and the states will soon regulate it? Where is the transparency? It just doesn't make sense in the long term. But it's nice how you defend Bitcoin! Keep up the good work. Unfortunately, you can't convince me that the Bitcoin train has already left the station :D Thanks anyway.

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ColaZero@ZeroSugar

14H

@stefan_21 However, gold is more comfortable to wear than copper or steel😜

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Stefan21@stefan_21

@ZeroSugar Why do you think that eliminating the third party is a problem?
When you hand over cash or gold to someone, it happens without a third party :)
And unlike cash, Bitcoin is only a pseudonym, not anonymous. Bitcoin is of no interest to criminals, as every transaction is forever immutably transparent in the blockchain.
And there are analytics companies like Chainalysis that work with the authorities to flag and monitor Bitcoin associated with criminal activity. As soon as the person tries to exchange the Bitcoin for fiat, he/she is exposed.

Chainalysis recently published its annual Crypto Crime Report. Illegal transactions in the entire crypto market amounted to less than 1% - and of that, only 7% (i.e. 7% of the 1%) is Bitcoin. The rest are mostly stablecoins and privacy coins such as Monero.

Back to gold jewelry: do you think people would wear gold as jewelry if it had never achieved this status as a store of value? If steel or copper had this status, I think they would be worn as jewelry. So jewelry is a consequence of the properties of gold. In my view, however, it does not justify why gold has a value.

My advice to you would be simple: get involved with Bitcoin. Look for the error. You're already asking some of the right questions. Dismissing it as "the train has left the station" is a mistake in my opinion. There is a lot more to Bitcoin than meets the eye.

Have a nice day! ✌️

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HoldTheMike@HoldTheMike

23H

The first asset of my life was gold -> 1/10 Australian Kangaroo. That was 17 years ago. Since then I've added to it again and again, but in the last five years I've let it slide.
Gold is and remains my safe haven.
Bitcoin is still too volatile and there is still no "if event XY happens, Bitcoin goes up."
Gold does.

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Pascal@Pacco93

22H

@HoldTheMike The Bitcoin disciples are about to come and demonize you again 😂

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Harald@Madhatter5566

21H

You could have used any other hype instead of Bitcoin. Nfts, tulips, coins. All the same junk that will crash at some point.

Anyone who believes that the current hype will be different from the thousands of other hypes hasn't heard the shot yet

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burnheart@burnheart

Bitcoin is more of a risk asset like tech and also correlates more with nasdaq&co. The term digital gold refers more to the use case - holding and betting on appreciation; in contrast to many other cryptos.

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