Topic: Btc and gold can now be called "safe" - page 2. (Read 499 times)

My question is: would those same analysts have predicted the same price for gold just a few months ago?  Do they think the world is going to be needing a safe haven asset like gold for years to come?  I'm extremely skeptical when it comes to people making predictions about precious metals, as I've read so many websites dedicated to hyping them--and all of the reasons they give for buying gold and silver remain the same regardless of anything going on in the world.

I've been watching the gold and silver market for years now as well.  I can't say I'm shocked that both have increased significantly recently, but I'm not sure gold (or silver) is going to double within a few years.

Bitcoin shouldn't be regarded as "safe" if you're speaking about the probability of losing money by investing in it.  It's never been a safe-haven asset and investors don't flock to it in times of uncertainty.  The only reason why both gold and bitcoin are rocketing upward at the same time is because of all the free money that's being handed out, combined with very low interest rates.  People are spending that money in the stock market, on bitcoin, and on precious metals.  I don't think anything is safe right now, and all of this cheap money is scaring the hell out of me.

Not sure how you can call a cryptocurrency that has more than 5% volatility safe....

Sure, it's probably safe from being banned by most governments, and we can be pretty sure it's never going to crash to absolute zero, but it's definitely not a safe haven investment in the slightest.

It's still high risk, high reward, and it's a long way from being anything different.

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You seem to forget gold has always been a safe haven asset and if you look at the charts it was already rising BEFORE the pandemic.
It started in December.
I suppose it's because there seems to have an upward tendency on the part of central banks to expand their gold reserves over the years, but it' s become more obvious only recently.( And the amount seems to be in line with their own GDP)
(I"m not to getting it currently but it's like if they're preparing for a monetary reset (and why not going back to the gold standart))

If it's true the pandemic is a test, it's the case for Bitcoin but not for gold. Remember 2008 and before. It might be appropriate to remember the fact Bitcoin dropped over 30% in the span of 2 months (between February and April). As a purported safe haven, that's not good.
By comparison, gold has made more than 20%...

I understand but people seem to be overexcited because the price hits $12k, they shouldn't. we've seen some pretty epic situations before.


You're mixing 2 things. The fact Bitcoin starts to be accepted as a payment mean and Bitcoin as a safe haven. Here the discussion is about BTC as a safe haven. If people start to use/accept it as a payment mean it doesn't make it a safe asset


This is simply due to the fact investors also allocate part of their funds to safer markets (diversity is a golden rule).

Nothing is safe if traded accordingly. Even the gold price can drop from the current price ( possibly will drop). The gold price always increases during the time of war, and currently, it's a war-like situation. It can drop after the pandemic end.
And volatility of BTC price is known to all, you can just buy and relax thinking it's safe you needed to be alert on the market situation.

Bitcoin is definitely not a safe asset. It's a speculative asset, and people who are buying it as a safe haven are taking on far more risk than they're capable of knowing, and that makes it dangerous for those people because the risk-reward of a real safe haven vs. what people are getting with Bitcoin is not comparable. Bitcoin's entire history is one of extreme volatility. Just because it hasn't dropped significantly during the pandemic doesn't render it safe. If that's your stance, you have to be far more worried about the significant drops of this "safe haven" when there was no pandemic. All the wishing and calling it a safe haven in the world won't change the fact that it isn't. Treat it as one at your own risk.

Bitcoin is good but I do not think it is ok to call it safe haven even though the price has been consistently increasing for weeks now but there is not a concrete reason for this and if we learn from the past, no matter how high it can go, the price can fall deeply within few minutes which makes me wonder if such can be called a safe haven for investment. I know little about bitcoin and I cannot say how sustainable it is to invest or call it a safe haven

bitcoin has always been a safe haven even before it reached $12k and long before that in its early days back in 2009. it is a safe haven asset because it is decentralized, unique and 100% secure. nobody can take it from you short of torturing you to get it out. gold and other assets can easily be confiscated or even stolen.

the only problem with bitcoin, which still exists, is that it is new and volatile. so it brings a certain level of risk with itself which is why it is not yet widely accepted by people around the world.

The luckiest thing about gold I can say is the fact that my mom and dad are old school kind of people and they had a bunch of gold saved up and they totally forget about it, they get one gram per month and just do not even touch it, they even have debt but instead of paying their debt they just keep collecting that gold thinking they will pay the debt eventually anyway when they do not go into further in debt and just go back to their regular life so they paid of all almost all their debt over time in years anyway.

But now they have so much money via gold, they weren't expecting this much increase, they were expecting to just save money and maybe profit a bit but I think they have doubled their money. You know what I find funny? In bitcoin world I could have doubled all my money, even close to triple it in the past 4 months...

Some people here are investing in bitcoin to fight inflation, and people are trying hard to fight it.

Although fiat devaluation is the same with inflation, that's not the focus here, but the main focus is that people should prioritize investing in gold or bitcoin with or without economic crisis.


It depends on how people will deal with the benefits of bitcoin. Some are using it really as an asset, as a store of value, and as a source of profit. But to some people, they also use it as a payment tool for their transactions, not small transactions, but wider or huge transactions like immovable properties.

There's a difference between "safe-haven" assets/investments and assets/investments being considered "safe".  I in no shape form or fashion could call cryptocurrency of any kind "safe".  Gold has been around a lot longer but I still wouldn't call it "safe".  In terms of investments and the investing world, yes I would consider them "safe-haven" assets.  ..but remember, there's a big difference between the two.

 "A safe haven is an investment that is expected to retain or increase in value during times of market turbulence. Safe havens are sought by investors to limit their exposure to losses in the event of market downturns. However, what appears to be a safe investment in one down market could be a disastrous investment in another down market, and so the evaluation of safe haven investments varies, and investors must perform ample due diligence".- https://www.investopedia.com/terms/s/safe-haven.asp

Gold is a safe haven and bitcoin is starting to gain the trust of the investors, but let's hope it will not dump again.

I'm afraid that while we continue to praise bitcoin on its performance this year so far, it might be manipulated again and just like before it will again result to a big dump and the market panic will start. The one year performance of bitcoin is more on like a rebound, not totally accelerating consistently, so it's hard to judge that it's a safe haven when it wasn't so consistent yet like what gold have showed.

On the contrary, I think BTC and gold are on the rise because they are risk assets. For months now, the market has shown increasing risk appetite now that the Fed has made clear it will not tolerate a bear market. Now all the cash freed up from liquidating investments in February-April needs to go somewhere to make returns again. It's basically being piled into the market everywhere now. Very weird times.....

Really? As far as economy concern its price still depends on the economic value too. While bitcoin surpass the tragic crisis of the pandemic. Comparing both, I can say gold is much stable when it comes to price value while bitcoin has a very volatile characteristic. What I both like about them is their presence serve as a safe heaven for some investors. Like what OP explained it was tested during the covid situation.

Any investment is never safe, they are only measured based on risk, from low to high, and it also depends on the investors on what investment they will take as normally when the risk is low, the return is also low, while high investment gives higher return if successful in investing.

Big investors will look for a lower risk investment because they have bigger money to invest so they might be satisfied with the return, but most investors actually like big return so we are taking a high risk investment and bitcoin is suitable for us.


But that resistance would not last, bitcoin will again be victorious breaking it soon, sorry. Am I too optimistic?

If gold can still be called safe because the decline is not so significant, it will remain more gradual in its increases in the next few years and of course investors will see how gold reacts with the increase in several weeks, maybe gold will be safer than bitcoin.
We know that in the past month bitcoin has become the world's spotlight because of its rise during the crisis, but bitcoin still shows itself to be a safe investment, that's only partially, but for me it's still not safe enough because it doesn't crash tomorrow or the day after it could be something happens in bitcoin.

Gold is a proven safe-haven asset. Bitcoin has the potential to be a safe-haven, but this remains a possible future state.

Yes, the response of crypto prices to the pandemic has been encouraging, but we can't say that bitcoin volatility has suddenly disappeared for good. It remains comparatively low volume when compared to traditional markets, it is of course unregulated, and is still regarded with suspicion and mistrust by most governments. It has the potential to be a safe-haven and the ultimate store-of-value... but at the moment, it is seen much more as a highly speculative asset.

I do agree with you that the signs are encouraging, but I still think we are a long way from that end-state at the moment.

Most probably people losing their faith from centralized organizations and they like to hold their valuable assets by themselves. For example, if you go to the bank to withdraw your deposited funds, and if the amount is quite big then the bank could ask you lots of questions. So I think people do not like such as questions regarding their own funds. As a result, they like to store gold who aren't familiar with crypto-currency. And those are familiar with crypto-currency and have faith in it they are storing bitcoin into their wallet instead of keeping their fund into the bank. So both assets demand is increasing even during the pandemic.

In my country, banks asking so many questions during withdrawal funds like why withdrawing, where to spend, and so on. Our country's population now like to hold their fund to their hand instead of deposit into bank due to fair of bankrupt. But if you are holding gold and bitcoin you can sell it anytime you want, no one will raise any questions. That's how gold and bitcoin showing positive movements during this global pandemic.

Bitcoin in general may not be considered as a safe haven mainly because of it's high volatile nature, but It would be a totally different story when the investors consider and use Bitcoin as a safe place to store and avoid the hyperinflation and possible devaluation of monetary assets in the bank. It is inevitable for some of the investors to doubt whether Bitcoin will be a safe haven in times like this or not.
While Gold on the other hand is always a safe haven long before any tools or medium of exchange we are using in the modern era.

Butr investors are investors who also want profit so why would they dive their noses to stable like gold when they can get profit and investment the keeps going up like BTC.

If an investor buy gold for the reason of it being safe then he probably have not heard of BTC or some crypto projects before because if he would and have learned it deeply like most of us in crypto, he'd be buying BTC.