Topic: In times of war, Gold rises. What about Bitcoin? - page 2. (Read 756 times)

For something as established and well-trusted as Gold, it's going to take quite a long time before people switch to Bitcoin as an alternative store of value. Mainly, the new generations will adopt it quickly. We can see the world is slowly shifting away from the Fiat standard as countries open their doors to crypto/Blockchain innovation. El Salvador was the first country to adopt BTC as legal tender with many more to follow soon. Once Bitcoin becomes a part of our lives, many people will trust it during uncertain times. This could take decades before it becomes a reality.

I have no hurry to see BTC reach a new ATH, as long as it works as intended. With spot ETFs on the verge of being approved, as well as subsequent block reward halvings, you can bet BTC will become more valuable over time. You just need to be patient. Maybe Bitcoin will get to live alongside Gold for generations?

In terms of popularity, gold is indeed superior to bitcoin, because it is clear that gold existed much earlier than bitcoin. So gold is indeed an asset that is familiar to most people. Because gold is widely used as jewelry by most people and can also be used for other things. For example, it can be used as material for making electronic devices, and some are even used for medicine and food. Therefore, the majority of people still use gold as a store of value asset. However, currently bitcoin is also experiencing a very significant price increase. As I write this, Bitcoin has touched $29.7k. So it can be said that Bitcoin is still experiencing a significant price increase. Because if you look at the conflict between Israel and Palestine (hamas). Indeed, I don't think the impact on Bitcoin is too big. The reason is, countries that border Israel or Palestine are not countries that have many crypto (bitcoin) users. So you can be sure that people in countries close to Israel or Palestine will definitely look for assets that can secure their wealth, and gold is the choice. That's why the price of gold rose after the Israel and Palestine (Hamas) incident occurred.

I mean not technically but also yeah give or take. We know how many address we have, not exactly how many people, because we do not know exactly how many people hold many address, so it is impossible to know the exact number. But if we check the number of people who gave their KYC to get bitcoin or any other coin, then we could basically come up with a number, which not everyone would do but it is still something at least.

All in all there are a lot of people who are investing into bitcoin, that much is known and there is nothing to argue about that, it is going to be something that will matter without a doubt and should be something that we could get better at, it could definitely be something that should benefit us all.

Up to this point, gold and jewellery holds more validity when compared to BTC, although Bitcoin has witnessed rallies during times like the COVID pandemic or certain war-related events. However, these surges may be attributed to the effects of volatility. Gold has proven to be more stable "for the time being." The world still places its trust in gold as a hedge of value, possibly owing to its more mature age compared to Bitcoin. As long as Bitcoin has not achieved widespread adoption and remains vulnerable to manipulation, it cannot rival gold.



In terms of features, it's clear that Bitcoin surpasses gold. Transferring an equivalent of $10 million in wealth is undoubtedly easier using BTC compared to gold. Yet, the traditional mindset of past generations persists: "Visible assets are the valid assets." We are still awaiting the moment when Bitcoin is universally recognized by nations as a more valuable asset one day.

The majority of countries in the world use gold as a protector of their economic strength and also their country's currency, so when war occurs the price of gold will rise, there was even news circulating a few weeks ago that Russia and China were again stocking gold in large quantities in anticipation of war in several countries is getting hotter. it's not 1 or 2 times that a strong country buys a lot of gold as their savings reserves, apart from Russia and China there are several other countries such as India which reportedly continue to buy gold periodically.

I do not agree. When a war occurs, all countries will be affected, especially if the country at war is the country that produces the most natural products, such as Russia's war against Ukraine. Basic materials in several countries are increasing. War will cause a very serious economic, energy and inflation crisis, war can occur between countries or within countries. We can take this as an example in the 90s during WW1 and WW2 which occurred almost all over the world.

Of course, the things that save your assets when a war occurs are gold and bitcoin because these two assets are able to protect our assets from inflation due to war.

But when the war is certainly bitcoin it will be constrained to its bull market, because usually the war will make many assets fluctuate due to the shifting macroeconomic impact making it difficult to find global economic stability, and bitcoin which is a very volatile asset will definitely be greatly affected by it, many people will panic and throw their bitcoin into the market, as we see that when Russian aggression against Ukraine it has a significant impact on the market.

Gold is one of the alternative assets to withstand the unclear economy, and it is certainly good in that situation, because gold will maintain the value of your money, but then talking about bitcoin after the economy returns to normal rotation, bitcoin will move better and can make you get a better position than holding gold, the issue of halving and bitcoin ETFs that are of concern to holders will certainly drive bitcoin to get crazy adoption and I also strongly believe that bitcoin will get a new ATH in this cycle, although these times are uncertain if seen from the global situation towards bitcoin, but I am also quite confident that later this year bitcoin can be more than $35k.

I'm sure Bitcoin will reach a new ATH soon. The upcoming halving event, and companies buying like crazy (Blackrock, Fidelity, Microstrategy) will help BTC cross the $30k range faster than you could imagine. You can buy BTC at a huge discount and sell it for a profit once the market pumps again. Gold rises during times of war, but it doesn't experience high gains as Bitcoin does. It remains relatively stagnant for long periods of time.

When you invest in Gold it's to help preserve your capital/purchasing power. Not to get richer over time. By leveraging between the two assets (Bitcoin and Gold), you'll be able to achieve peace of mind. These are uncertain times we're living into, so expect the unexpected. Just my thoughts

You see, you understand perfectly well that cryptocurrency, which has no real value, cannot be a means of solving the problems of preserving one’s “accumulations” in a situation like war. Plus it also carries the risk of losing access to your data/wallets. Therefore, people in a critical situation do not invest their savings in them, and there are a thousand explanations for this. Therefore, the “emergency backpack” will most likely contain cash dollars and euros, possibly gold, but not a laptop with bitcoins (exaggerated). Now, for this topic, the problem is different - to maintain and not lose access to your crypto savings, and this is a completely different topic

The war between Israel and Hamas doesn't have much impact on bitcoin or the cryptocurrency market, but what about the war between Russia and Ukraine? I remember that when the war between two countries broke out, most financial markets were dumped and bitcoin was no exception. So, I will disagree with you saying that the cryptocurrency market will not be affected by a war in a region or between several countries.

Another thing we should not deny is that when these two wars happened, the price of gold both increased, this shows the importance of gold to the world but this has never happened with bitcoin.

These goods only increase in areas where there is war, whereas in many areas that are still quite safe there will be no sudden increase in the price of goods by a significant amount. So you cannot generalize the prices of all goods in all regions of the world, unless all countries are hit by a major war and there are not enough goods to use because the production that can be carried out by companies and factories is limited. Meanwhile, most cryptocurrencies skyrocket due to good moments and news about them so they will not be affected by wars occurring in certain regions, unless all countries are at war so investors have difficulty accessing the cryptocurrency market.

Yes, we don't know the final supply of gold but it has been mined for thousands of years and is still in short supply and gold is used in many different fields. Therefore, it can be said that the demand for gold is very large compared to the amount of gold circulating in the market.

We have been mining for thousands of years but there is still not enough demand for everyone, you can see how big the demand for gold is. Although bitcoin has a very small supply, whether its demand can surpass that of gold is difficult to say. Supply is important but it also depends on demand to assess the value of an asset.

First off, do you have any data to back up the claim that "in times of war, gold rises"?  I"m sure that true to some extent, but I'm not sure how true it is overall (meaning for all wars over the course of time). 

Also bitcoin is in fact rising as we speak, and has been for the past couple days.  I don't think it has much to do with the store of value aspect, people simply panic during times of war fearing the worlds economies will take a massive hit, and in return people tend to sell off any sort of asset, whether thats gold, bitcoin, stocks or bonds. 

I'm just not sure there's a correlation here.

Don't be afraid with bitcoin price will drop after Israel-Hamas conflict because we are facing the same position when Russia invasion to  Ukraine almost one year but bitcoin keep stable and not get drop with Russia-Ukraine conflict. For many people more interested with gold investment than bitcoin depend on their mindset and lack knowledge with bitcoin how potential in the future with price increasing up, I have experienced with gold investment keep secure but can't earn huge profitable than bitcoin investment.

I think have era with Israel-Hamas conflict ended and there are not war invasion yet, keep focus accumulate or invest in bitcoin during still in lower price and have beneficial in the future when raising to higher price.

Bitcoin market is quite new compared to Gold market which has been around for so many decades. There are no comparison between gold and Bitcoin. They are both the best option in their own way. The war could have some impact on the market, but that won't be much. Because only two countries are fighting, and the whole world is still the same. And I don't think the majority of the population of those two countries are involved with Bitcoin. So in the time of crisis, people won't see that much market movement due to not enough people contributing to the market.

If you include war into Bitcoin market then that should be sentimental. And sentimental market movements happen a lot, but the effect does not stay for a longer period of time. If you take that into account then I don't think Bitcoin will see major movements in the market due to the war. Even if the market rises now that could be because of the upcoming between halving.

People still doesn't see Bitcoin as the best store of value just because of the volatile nature of the Bitcoin market. Most people are afraid to lose their money. And I am not against them. You should only invest what you can afford to lose. So if people choose Bitcoin as the store of value then they will have to put money that they are not yet ready to lose. I guess that's the case.

But since we know max supply of Bitcoin and we can track how many people are hold Bitcoin, we can know the Bitcoin's condition. Although there are few address contain a lot Bitcoins, but the majority of address are around 0.00001-0.1 BTC, this mean Bitcoin is decentralized.

While gold we don't have a clue how much the max supply and the comparation of whales vs Average Joe.

During war of course many commodities skyrocket such as gold, foodstuffs, war equipment and others, of course during war the production, distribution and agricultural processes are disrupted, causing prices to skyrocket, of course this is different from bitcoin and cryptocurrencies, most people will do safe things, for example saving or divert to low-risk types of investments.

Is it correct to say that gold is centralized because mining it is extremely difficult, and it is not concentrated in one place but scattered all over our earth? So I wouldn't consider gold a centralized asset, but it has been proven and recognized as a valuable asset, so the majority of the world's gold is already held by governments. But that's like bitcoin, the majority of bitcoin is being held by institutions, sharks. So if you think gold is centralized then bitcoin is also on its way to becoming a centralized asset because institutions are holding a lot of bitcoin.

Gold investors never compare these two assets but bitcoin investors love to compare them because they consider gold to be a very valuable asset and if comparing bitcoin, bitcoin is superior to gold then bitcoin will be the best asset in the world. Bitcoin investors are trying to prove themselves right when choosing a top asset.

If you look at the capitalization of both, you will understand why the price of gold does not increase too much and no longer brings us big profits. Yes, gold is outdated but it is still the asset that most people and countries will turn to if there is a crisis, war or inflation. That alone is enough to prove the role of gold in the world.

Is there a need for us to compare the worth of bitcoin with gold, they are two different investment assets, gold is a physical asset while bitcoin a digital one, this alone makes a big difference in comparing them together, bitcoin is decentralized whereas gold has always been centralized, they both have a unique characteristics when it comes to their usefulness in making an investment but what determines their rise is quite different from each other, since most of us are not really into doing gold investment, we may only know about bitcoin which it's demands and supplies determines it's market value.