Gold and Bitcoin prices: the surprising relationship - page 2.

Fara Chan

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Quote from: rohasnagpal on May 28, 2024, 05:24:58 AM

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Originally published by me at: https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising

Bitcoin and Gold are both considered as future assets that are good enough to be owned and invested in by anyone who likes them even though they still have several differences in certain aspects at this time. However, in general, there are still many people who consider Gold to be the best asset and this also applies to Bitcoin because the current Bitcoin investment volume is enough to prove that Bitcoin is also a very good asset. So sometimes some people don't really care about such a big correlation because when both assets experience an increase, of course those who hold both will feel happy.

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Quote from: DeathAngel on May 28, 2024, 07:32:32 AM

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

Gold has been an assets for so long,but bitcoin speculators have choosed bitcoin more.bitcoin has been used over or more than gold all because bitcoin is better off to handle certain economical recessions and crisis.
They both secure the same similarities,but bitcoin features and benefits relatively seems to outweighs gold in this age ranging from popularity,security,decentralization e.t.c
Bitcoin's strength has outperformed gold existence,its not just that gold doesn't offer benefits or has limited growth potentials.Gold could be preferred in some cases over bitcoin,and vice versa.

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Quote from: rohasnagpal on May 28, 2024, 05:24:58 AM

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Never analyzed this data before, what benefit of this could be, Does it also mean when BTC loses value Gold also and vice versa, if that's the case, then those people who used to say we should diversify our investment in order to minimize the risk of losing funds by investing one part in BTC and another in Gold as there prices are independent of each other, are all wrong now!

BTW I am one of those people, who thought BTC and Gold prices are not dependent on each other, in my opinion, they are not directly proportional to each other, TBH I don't think it has anything to do with the price of any of the two, like it's not like BTC following gold or gold following BTC. I think its a coincident. What's the source of this fact BTW.

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Quote from: DeathAngel on May 28, 2024, 07:32:32 AM

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

Almost everyone here will say that bitcoin is better than gold and invest in BTC. But is it right to compare these two financial instruments? Gold has always been used as a store of value, as a kind of defensive asset that has stability and the ability to retain value by offsetting inflation. Bitcoin is a means of increasing value, which is already a difference from gold. Look at the price chart of bitcoin and gold, and you will see that this asset allows you to increase value. Bitcoin allows not only to compensate for inflation, to surpass it many times over and make a profit.

The predominance of gold in the traditional financial sector is gradually being replaced by bitcoin, which may lead to the fact that gold's influence and therefore value will decrease, in which case, I would also not risk investing in such a financial instrument at a decline in investor interest. In contrast to bitcoin, in which investor interest is only increasing, which is easily confirmed by big institutional investors pouring huge amounts of money into this industry.

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Quote from: rohasnagpal on May 28, 2024, 05:24:58 AM

Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Op I just figured it out that you're a newbie and this post happens to be your first post. While welcoming you to the forum, It's expected that when you're bringing up crucial or technical informations like this, it should always be supported with Source for authentications and for interested members to learn more of it direct from the source.
This is just as rohasnagpal has made a good leadership for you here .
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Quote from: Upgrade00 on May 28, 2024, 05:31:20 AM

You should always include the link where you got your info from, especially if you're going to write it exactly as it's written there - https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising
Not including the source of your information can be termed plagiarism, especially if you don't state it's not your original content.

Quote from: DeathAngel on May 28, 2024, 07:32:32 AM

Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

Of course gold is a specification to store your asset values but can't be compared to bitcoin because the values of gold is only subjected to its scarcity while bitcoin subjects its valuability also on scarcities and massive adoptions which is to say bitcoin has lot of varieties by which it could drive potential uprises of its values.
So having your assets stored in gold commodity with the goal of making interests has potential losses that storing your assets on bitcoin as the both are volatile.

DeathAngel

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Gold is a risk off asset, Bitcoin is a risk on asset but Bitcoin is the far better asset. You will make much more profit in Bitcoin holding over the long term. Bitcoin is gaining increasing adoption & credibility within the traditional financial world so I would not bother investing in Gold because Bitcoin is far better.

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You should always include the link where you got your info from, especially if you're going to write it exactly as it's written there - https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising
Not including the source of your information can be termed plagiarism, especially if you don't state it's not your original content.

On the correlation between gold and Bitcoin for it to be taken into account, one would have to correlate the relationship between Bitcoin and other assets as well as gold and other assets. A positivemarket usually affects many assets in the same way leading to same results.

rohasnagpal

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Using daily price data from September 2014 to May 2024, the correlation coefficient between Gold and Bitcoin is approximately 0.82.

A 0.82 correlation indicates a strong positive relationship: when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

Let me know if you want the raw data.

Originally published by me at: https://cryptoprofits.substack.com/p/gold-and-bitcoin-prices-the-surprising

Topic: Gold and Bitcoin prices: the surprising relationship - page 2. (Read 231 times)