Bitcoin Forum

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

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.

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.

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.
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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.

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.

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.

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.

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.

It makes sense since most investors of bitcoin tend to diversify their portfolios by investing in different assets not only in cryptocurrencies. Usually when they invest in bitcoin they also invest in gold. Most people have recognized both assets as similar in a way that they are both assets used to fight against inflation.

Even though they are correlated, this does not mean that an increase in price of gold will also cause an increase in price of bitcoin.

Both are solid money. Both are in limited supply. Both have advantages and disadvantages compared to each other. I am trying to accumulate both Bitcoin and gold. Bitcoin mass adoption is not yet complete. This is its biggest advantage over gold. Also, it has supply control, it is easier to transport and it can be divided into smaller pieces. When mass adoption is complete, it will be at the top of the strongest solid money along with gold...

Trading between these two assets means trading between solid money, and this may be the best option for us...

People consider gold to be a better asset for investment as compared to Bitcoin, even if the difference exist wherein neither is backed by an external reserve.

One reason why people will always consider gold as a better investment option, is due to the fact that it is universally recognized and accepted not like Bitcoin which is still under scrutiny by several governments and individuals and even banned along with other cryptos in most regions currently.

The value of Bitcoin right now doesn't fall due to its success as a currency since Its launch till date and also the price sometime back was reported to have surpassed the price of silver and nearing the price mark for gold which shows that it is still being adopted and used mostly after the launch of the exchange traded funds.

I don't think this is relevant comparison a gold and Bitcoin are different in every simple aspect and have different working dynamics hence we cannot justify any comparison between gold and Bitcoin and rather we may check for other high risk asset and compare its growth with Bitcoin to an extend but still we cannot find a contender with the same aspects as Bitcoin.

Looking at the price charts, I think 2017-2018 were quite different for gold and Bitcoin, but looking over the last few years, the charts do look fairly similar, so perhaps it's reasonable to speak of a correlation. Gold is still clearly relevant, as it's still growing. Its overall growth over long periods of time is undoubtedly lower than that of Bitcoin, but again, looking at the last few years, it's comparable because Bitcoin's 2024 ATH isn't far off from its 2021 ATH, and who knows, maybe Bitcoin will now grow slower and more steadily, just like gold does.

I think any asset has its own risks, there is no risk-free asset including gold or real estate, but their risk will be lower than bitcoin. In my opinion, gold is the perfect safe haven for people who like safety and do not want to take risks. Meanwhile, bitcoin has higher risk but that does not mean it is not safe, and if we take the risk then we have a chance to get a bigger reward.

The reason most people will choose to invest in bitcoin and not gold is because everyone wants to get rich with their little capital and only bitcoin can provide that opportunity, both gold and real estate are it is impossible to do. But if you owned millions of dollars or had enough money to live a lavish lifestyle, would you still invest in bitcoin or would you choose a less risky solution? I guess then, you won't choose bitcoin anymore but will choose gold and real estate instead.

Gold and Bitcoin do have very different forms, Gold has a physical form, while Bitcoin is a digital currency that does not have a physical form. In fact, we can also see that the total supply available for the two is also different, Bitcoin has a very limited total supply, while Gold has an unlimited supply. Bitcoin should be more expensive than Gold because it has fewer entities and is harder to get.

I only understand one big difference between these two assets and that it is their USD value. The price of Bitcoin has been increasing at a steady rate for the last 15 years  whereas the price of Gold remain stagnant. Investing in Gold is still considered secured because 15 years back the alternative to fiat was always Gold. As for now the options are changing and there will be a time when Bitcoin will be more famous than Gold.

I doubt that with the increase in price of Gold the price of Bitcoin increase. I think it is the opposite when Bitcoin price increases the price of Gold does the same. Bitcoin is so volatile that it's not that easy to predict the price or correlate it with a physical object.

That's definitely one of the factors that make people a bit reluctant to use bitcoin hwever some people actually see bitcoin's lack of dependency on the government to operate is what attracts most people. No one controlling bitcoin and its price and it being decentralized is exactly what people want.

Are you trying to promote your own blog, OP? What is this weird cryptoprofits.substack.com domain name?
Anyway, I think that having a correlation means having interdependence. Which means that the gold price goes up BECAUSE the Bitcoin price is going up and vice versa. Such interdependence between gold and Bitcoin cannot be proven, which means that the correlation between BTC and Gold might not exist. Both BTC and Gold are just two assets that are in bull markets currently, which is the main reason why their prices are going up.

that's your opinion and that's valid but I believe that both of them has a risk if we considered it as one of our investments. As far as I know, the value of golds appreciate in the long run that's why many people are much more interested in buying golds nowadays because there's a lot of proof that gold is one of the best tangible assets that we should have, same goes to bitcoin but we are all aware that the value of this coin is volatile and we can't predict when the value will increase.

Yep, I don't deny OP's point because I also feel the portfolio between gold and crypto in the financial system.

But in this space we had an opening period that was not openly welcoming, or more accurately, resistant to bitcoin and even now there are factions that are against it.

And basically with investment markets, they have a relationship with social operations, like production - technology - military -.... all have a relationship with each other. With bitcoin, I really see the huge opportunity it represents, but there will also come times where we will see more widespread adoption of it.

I think no, BTC did not increase steadily and this is why it is known as a highly volatile crypto. Gold on the other hand, is I think have experienced an increase even if not always because as opposed to BTC, it is known as a more stable asset. Not only ' still ' but gold will always be secured. You already said the reason for it. Even if given enough time, I still think that gold will always be more popular than BTC.

Like you, I doubt it too that BTC will follow the price increase of gold because both are different assets. In fact, it can be a sign that BTC value is decreasing because the demand is going for gold instead of BTC. But if BTC price is the one who rise, gold may now decline this time.

This has never been true. You are basically interpreting coincidence as correlation.

The fact is the world economy is in a terrible shape with inflation and recession. The inflation part is creating an incentive for people to invest their money that is losing value. Their choices are obviously bitcoin, gold and a lot of other things. So price of both goes up not because there is a correlation but because they both are used for diversification.

The recession part is creating incentive for people to liquidate their assets to be able to cover the cost of living. Again if both gold and bitcoin drop at the same time, it doesn't mean there is a relationship between the two.

If anything, you can say there is a relationship between bitcoin and the economy.

In fact, if we can and are able to have both. usually like that..he.he  Yes. BTC is digital gold and Gold is traditional people's BTC.

I personally don't mind it because if the price of gold goes down I buy and if BTC goes up I sell to buy gold and that's what I will continue to do. Gold prices rise, BTC generally falls, and if BTC prices rise, gold prices fall.

If you compare the market capitalization of bitcoin and gold, bitcoin has a market capitalization of less than $2 trillion while gold has a market capitalization of more than $15 trillion. From there you will know why the price of bitcoin has increased faster than gold in recent years but it is still considered a riskier asset. And I believe that when bitcoin's capitalization is equal to gold, the price of bitcoin will gradually stabilize like gold but I don't think that will happen soon.

Although both are financial markets and sometimes they will have similar moves as they are both measured in USD, and in case the USD falls then both will increase and vice versa. But that doesn't mean the two are related because their value lies in supply and demand, and the supply and demand of these two assets have never been the same.

Sometimes people often choose both of them because gold and Bitcoin cannot be ignored for their profit so I think we should not avoid any of these as if the price of one increases then there will sure be hype in another one and we can easily take our profit.

Bitcoin is considered valuable for those who have firm faith in digital investment and is more secure than gold as nobody will have any information about bitcoin but gold is a physical investment which is seen by naked eyes so there is a chance of stealing with gold otherwise the benefit of both are higher.

Although there are many differences between Bitcoin and Gold, Gold is more popular. But gradually the popularity of Bitcoin has started to increase. I think these two are very valuable assets. Earlier people used to invest in Gold, but now in the digital era, the demand for Bitcoin has increased so that everyone now  Gold also invests in Bitcoin. I favor Bitcoin more of the two because I know the price of Bitcoin will go up a lot more in a few years.

The two do have a correlation that looks related. Because both of them tend to have the same movements at a certain time within a certain period of time. But actually there is a big difference between the two. Like gold, it remains strong because there is minimal risk and has received full trust from the past and to this day. But Bitcoin does have high risks but its adoption rate is increasing rapidly and remember Bitcoin has a supply limit. Different from unlimited gold. And because we are in the digital era, I still think Bitcoin is what I prefer. Because a more advanced era in the future will encourage everything to become completely digital or digitized. And this will make Bitcoin much needed and will get more attention and adoption from the next generation. It's just that gold will still be a necessity. But in the world of digital investment Bitcoin will get more attention.