Bitcoin Forum

Gold prices have reached a new record above $2,500 per ounce. Investors expect that gold prices may rise further. Since the beginning of the year, the price of gold has risen by 20% and could reach $2,700 per ounce by the end of this year (2024).

At the same time, we must take into account the unstable state of the global economy, we can assume that investors will continue to invest in gold to the detriment of investments in cryptocurrency and specifically bitcoin.

What is your opinion on this issue ?

I don't think it reduces the attractiveness of bitcoin. If we look at the long term, and according to curvo.eu bitcoin has appreciated by 63.6% per year on average over the last 10 years, giving a cumulative return of 13,616.3%, while gold has appreciated by 8.8% per year over the same period, giving a total return of 133.3%.

If we zoom out we can see that bitcoin has been 10 times more profitable. It will not necessarily continue to be so in the future but everything indicates that in bitcoin vs gold, bitcoin will continue to be the clear winner, apart from the fact that the world has shifted everything to digital.

Which is better, a paper map or google maps? Cassettes and CDs or Spotify? Etc.

Gold was $2060 at the beginning of this year. Its price now is around $2508. That is 1.217x increase.

Bitcoin was $42700 at the beginning of this year. Bitcoin price now is around $59400. That is 1.39x increase.

Despite that bitcoin is having a bear time, it still increase more than gold this year.

I don't think so Bitcoin and Gold have different market so for sure Bitcoin attractiveness will remain despite of Gold price is increasing. Same goes with if Bitcoin price goes up demands for gold will remain.

Don't know why there's need to compare it since we see how big the demands gotten by these two asset. If gold investor would know that there 's another asset like bitcoin exist and they see some great potential from it then provably that they join us here. The same with traditional gold it goes same way since people usually find good opportunity to gain since most of investors doesn't like see their money sleeping in their wallets or bank accounts.

But I'm more into Bitcoin then left something for gold since I guess having we could maximize our investment then something good profit return in future.

A pearl of wisdom in finance is that you can't judge what an asset is going to do in the future based on its past performance--and though you qualified your statement with the bolded part above, I'd wager that a lot of members here base their crypto purchases by looking at charts.  Sometimes it works, but it's a fundamentally flawed method of investing.

Nevertheless, I agree that bitcoin will most likely outperform gold in the long-term.  Yeah, gold is flying high right now, but that's because there's a whole lot of guessing games being played regarding interest rate cuts, upcoming election results, and some other economic indicators that might go one way or another.  Assuming things settle down, gold will probably plateau or drop in value.  It just isn't a good investment; it's a hedge against uncertainty (and inflation, if you believe that).

It is common for people to invest in safe-haven assets such as gold during inflation and increases in interest rates. In this time of economic uncertainties, investors tend to invest carefully and also avoid taking risks. So it is not surprising the gold price has continually appreciated since this year.

But it doesn't mean that it will greatly affect investment in Bitcoin since both sectors have their separate markets. Gold is usually favoured by Generation X  and Baby Boomers, while Millennials and Generation Z will prefer to invest in Bitcoin. But investment in Bitcoin will increase immediately the economy begins to recover maybe later this year.

Gold is proving to be the best asset during crisis and major political/economic problem, that's what people think because the gold price increase during that time while the other assets including Bitcoin are declining.

This is actually a bad news, the majority didn't think Bitcoin is the safest asset, instead they buy digital gold.

Honestly I want to wait till the company who offer to trade digital gold went bankrupt, so people will learn that digital gold isn't same to gold.

I don't believe during crisis, most people at the same time go to pawnshop to buy gold...

Gold hitting $2,500 an ounce is significant. People are scared, running to the oldest safe haven they know. Some say it's going to $2,700. Maybe, but wake up. Gold going up, Bitcoin going down - that tells you everything you need to know about where we are. Fear is driving the market, not logic. Following the herd into gold? That's a sucker's play. Think bigger. The future economy isn't about gold, it's about what comes next

Economic cycles exist and it keep running and running. But that doesn't mean you just sit back and watch. You adapt, you anticipate. Gold's hot now, but don't get tunnel vision. Crypto, tech, who knows what's next? The real play is understanding the flow of money, not just reacting to it

Yes, the gold price will keep raising. The US dollar will keep losing value in the long term. Dedolarization is a thing and the BRCIS countries would keep buying bigger amounts of gold. The day traders and unexperienced investors are expecting a recession and putting their money into the most well known safe heaven asset. There's global uncertainty and we are also heading towards the US presidential election.
The rising price of gold has nothing to do with BTC. Bitcoin isn't a safe heaven asset(not in the short term) and the investors, who are moving away from risky assets won't invest in a volatile asset like BTC. I'm still bullish about BTC in the long term, because I think that the Federal Reserve will start decreasing the interest rates in the next few months. The expectations of a global recession might not happen.

The main reason for gold rising up (which will continue) is because central banks and governments are buying gold at large quantities to use as a safe asset due to increasing global tensions (not exactly due to global economy situation).

As for its affects on bitcoin's attractiveness, I don't think it has any. People who buy bitcoin are doing it because they either want to reach financial sovereignty, or they want to diversify (have both gold and bitcoin) so they don't choose one or the other, they choose both.

Besides, bitcoin's potential to grow is far larger than the gold's potential to grow. Just look at the history. The 20% you said about gold rise potential is like reaching $71400 for bitcoin, a price that we had already seen not so long ago.

The comparison of percentages is certainly revealing, but somewhat incorrect. Gold rules the financial market - for millennia. Bitcoin is not full 20 years....  Gold does not have such wild volatility, unlike bitcoin. Gold is accepted by all countries, bitcoin - a small number ... And there are many such differences, and not all of them in favor of bitcoin, let's be realistic.

About the cards and the CD. That's a great comparison, but... How far will you go on google maps, if you have a dead cell phone or no signal A-GPS / GPS ? Do you get the same pleasure listening to cassettes as a theater with a live orchestra ? Do you like soy meat or fresh tasty real steak ? And which tastes better - fine New Zealand wine or Coca-Cola ?  :) Such examples can be given all the time, and in the end we will realize that there are no perfect solutions, there are solutions more suitable for some situations.

I even believe that gold will be able to reach 3k if our economy enters a recession but that alone is not strong enough for gold to reduce bitcoin's appeal.

From what I see, both gold and bitcoin have their own loyal investors and supportive communities. What gold investors look for is stability, they accept low but safe returns. Meanwhile, bitcoin investors are willing to accept risks to seek greater profits, so a profit of 20% seems insignificant and not attractive enough for them. It can be seen that the investment thinking of gold and bitcoin investors is completely different, so I think that even if gold increases further, it will be difficult to change the thinking of bitcoin investors.

I guess what bitcoin investors are looking for is x2, x5 or more returns, so even a 50% return still doesn't appeal to them, IMO.

This is an old news but I think gold trend is just because of the central bank led by China hauling it to ease reliance on US Dollar before[1]. Now with the introduction of BRICS currency backed by gold the price keeps skyrocketing but this doesn’t a big issue for Bitcoin since they are different type of assets. Bitcoin is a digital currency while Gold is a precious metal which investors can always diversify investments.

Maybe silver market can be affected but I doubt Bitcoin popularity will be affected since Bitcoin still has the volatility which many investors looking forward for a better profitability.


[1]-https://edition.cnn.com/2024/04/09/economy/gold-prices-record-highs/index.html

No, the rising value of gold won't reduce Bitcoin's attractiveness.  Many say Bitcoin is a digital gold reason why many compare Bitcoin to gold but I believe it is like comparing oranges to apples.  But for the sake of comparison, I believe Bitcoin is more than gold as it is said that Bitcoin is more than just digital gold.

Bitcoin enables financial inclusion which gold can't do.  Bitcoin makes boundless transfers cheaper and more accessible which gold can't do.  Bitcoin brings a financial revolution which gold can't do.  So no matter how gold has risen in value, it can't compete with the feature of Bitcoin which has its own market.

Gold thrive in global economic crisis periods  and over history people have known to hedge their funds in gold to preserve value when they anticipate an impending showdown.  Perhaps this new record could have been accentuated by the news about the US Fed plan to cut down interest rate any time soon. https://businessplus.ie/news/federal-reserve-rate-cuts/
Away from the bright side the price can fall long too assuming there's a change of plans by the Fed about the cut because it's just the fear of investors that is driving the price of gold up. The trajectory doesn't appear to stay that long  and that's why I don't think it can affect the attraction of bitcoin since the bitcoin market has its own uniqueness for it's investors.

Bitcoin investors will continue to buy bitcoin and will likely continue to accumulate as long as they have the opportunity. The purchasing power of gold has indeed increased which has caused the price to rise drastically as it is now, but in my opinion bitcoin investors will not give up on bitcoin and instead buy gold because of the price spike. Bitcoin's purchasing power will increase over time and will likely reach a new ATH again sometime in the remainder of 2024 or 2025, but I don't think gold's increasing purchasing power will have a significant adverse impact on bitcoin.

I like to diversify including buying bitcoin and gold, so I have both short and long term plans. So I don't think the impact of rising gold will worsen the condition of the bitcoin market which so far is expected to recover. The price of bitcoin is still around $59,500 and still has the potential to break through strong resistance in the remainder of this month and next month.

Bitcoin and gold are not comparable so it will maintain its position no matter what happens to gold, they are both different asset classes.

Also if Gold prices are rising then by logic, you dont buy it, but sell to make the profit and buy when it comes back down again, unless you want to flip quickly after buying. Gold also faces cycles like bitcoin and this is just one of them happening. We know how to ride these cycles and not get distracted by them.

A good portfolio should have both gold and bitcoin among others and make it a point to buy each asset when it drops below a set target.

Price growth is never constant and eternal.

This can already be called a "traditional" model of investor behavior, when, against the backdrop of an unstable global economy, money flows into gold as a protective asset.

Despite the fact that due to the endless emission of money all over the world, there is still a limited amount of money (backed by value) on the planet. Therefore, if we proceed from the "theory of connected vessels", then if the inflow of investment money into gold has increased, then the inflow of money into bitcoin should decrease. Also, I assume that against the background of the fall in the bitcoin's price relative to the peak values ​​in recent times and the increase in the cost of gold, it makes gold a more attractive investment instrument in the eyes of investors. Why invest in an asset that is getting cheaper instead of one that is getting more expensive and increasing profits? (this is the view of frivolous investors).

I don't think gold price increase will have an impact on Bitcoin. Because these two assets are loved by two different sets of investors. Gold is a traditional investment and you will mostly find traditional families and non-risk takers investing in them.

It is totally different for Bitcoin. If you look at the crowd that invest in Bitcoin, majority of them are risk takers, unlike gold investors.

So honestly I don't see an impact. A lot of investors will have both of these assets in the portfolio.

Yes, there were and are nuances for bitcoin investors, from volatility to the high risks of the crypto market itself. And only those who are ready to play “long term”, hoping for crypto market cycles, where you can count on another price hike, for example, in 3-5 years, will most likely invest there (in cryptocurrency). Gold gives an opportunity not to “freeze” money for such a long period of time, in order to get a profit, although it is cheaper

No because Gold won’t pump anywhere near as hard as Bitcoin will this cycle. Gold barely goes up at all, it’s an outdated investment. Bitcoin should treble from the current price in the next 18 months. I don’t think Gold will even go up 50% in that time.

Gold is not that vatile like Bitcoin, that 20% rise people are expecting might take 3 months or more to achieved that which you can make in Bitcoin if the market goes well. I also take a look at Gold chart of 4 years, Gold traded at $1900 average per ounce in 1st of Aug 2020 and it's trading $2500 per ounce today, that means it took people 4 years to make $600 but Bitcoin has done multiple profits in big numbers that gold has not made since it first day traded.

There was a time Gold and some stock were coreleted with Bitcoin and that was because institutional investors were gambling on both but today, the public interest of Bitcoin is far more than that of Gold. There is no way Bitcoin will remain in the shadow for now as many investors seems to be bullish and they are even calling for bull run next year.

This situation is related to investment preference. Those who prefer traditional investments and do not like to take risks prefer gold, but their profits cannot exceed a certain level. Bitcoin investors can make high profits by waiting for a certain period of time. At the same time, Bitcoin investors can take more risks than traditional investors.

Institutional investors' investment in Bitcoin has made Bitcoin one of the most preferred investment vehicles. It is always good for people to have alternatives when investing, and there are those who make their choices by choosing many investment vehicles.

It is good to diversify. Gold is more of store of value in short term because it is less volatile but the ROI can be very small. There are sometimes I just sell my coins and buy asset that is tokenized in gold. But later when bull market comes, then I can buy bitcoin back. Gold is still a good investment. But if you are looking for a better one that will give higher ROI and if you study it well and know when to buy it, bitcoin is better. Some people buy both and some other assets.

I agree that both assets, at least today, are attractive. Today there are 2 issues that will affect these assets, and accordingly their attractiveness:
- Global destabilization. This will drive up demand for gold. I.e. Gold + / Bitcoin.
- International acceptance of cryptocurrencies. This will raise demand (through increased use) for cryptocurrencies, and Bitcoin as an analog to gold in the digital world.
Here is the opposite - Gold - / Bitcoin +
But since the situation in the world is not binary, we are likely to observe a “spillover” of investor interest

If you’re definitely on about the ROI then we all know the difference is clear and bitcoin will be the best option but that doesn’t go away with the risk it Carries. I don’t think anyone this getting adopted more will actually affect the other because they are two different assets that people view differently, gold is treated more like a stable asset than bitcoin and diversification is done by bitcoin investors towards it.

My reason why i think bitcoin will be sorted after even if gold matches it with ROI today is the availability when it comes to buying, bitcoin is easy to purchase and more importantly privacy that comes with its purchase over gold

I don't think gold rising in value directly correlate to the decrease of bitcoin's attractiveness if i'm being honest, most of people investin in bitcoin because they like the volatility.
gold is great for investment but it's boring, a 1 month gain of BTC in a bullrun cycle could be achieved by gold in 1 decade, such a stark comparison if we are talking about capital growth.

if any, it'd reduce attractiveness of fiat because the inflation of fiat making gold a lot more attractive for many people.
but affecting bitcoin? nah, the crypto investors will prefer something that can actually make them rich and not just APY of 10%.

Gold is going higher because it is pricing the rate cuts. The inflation in the US still isn't as low as people wanted but the corporations also can't survive much longer under these high interest rates. In the end the rates will get cut and the inflation will stay high. That's why gold is going up. It means the inflation has won the battle. The dollar lost. It is not surprising though the FED printed trillions since the Covid19 pandemic.

Gold and bitcoin have different use cases. Gold may attract more investors at the moment but it is a temporary thing probably.

It looks like we may soon see a correction in the gold price:

“Gold prices are heading lower on Wednesday after hitting a record the day before, with investors awaiting the minutes of the Federal Reserve's July meeting and central bank chief Jerome Powell's speech, hoping to get clues about the possible path of the central bank's rate cuts.
The spot gold price fell 0.2 percent to $2,508.61 a troy ounce, moving away from Tuesday's all-time high of $2,531.60.
“Right now, the main reason for the relative calm in the markets is the wait-and-see attitude of many traders ahead of the Jackson Hole symposium,” said Ricardo Evangelista of ActivTrades.
“Jerome Powell is expected to speak on Friday and many are hoping that his speech will be the starting point for the Fed's rate cut cycle,“ the analyst said.””

I don't think this will have an effect on increasing interest in bitcoin users. because bitcoin is a very promising form of investment. and this can be proven because bitcoin is still surviving in terms of its existence.

Pretty sure there's none? I mean people can buy both, nothing stopping them from doing so (except for maybe their pride of supremacy over the other). Even when Bitcoin went up god knows how much during each of its past peaks gold didn't really seem like it wouldn't be a good buy. The same thing could be reasoned with Bitcoin here imo. The only reason Bitcoin (or golds) attractiveness would be reduced is if something happened to the assets themselves, or related to the laws around them. I'd say news like Bitcoin being allowed in X country has more sway than the price of gold really..

Investing in gold is considered outdated for retail investors like us because what we seek is high returns despite the risks. But for large investors, organizations or governments, gold is always their preferred choice because what they need is not too volatile and safe.

We are on the bitcoin forum and most of us are retail investors so our choice would be bitcoin regardless of the gold price. So we almost won't see or don't know whether the increase in gold prices will affect bitcoin or not. But I think it will more or less have an impact. The whole world is worried about economic recession so what they are looking for is a safe haven for their assets and that is the reason why gold prices are increasing. They will limit investments in highly volatile and high-risk assets so it cannot be said that it will not affect bitcoin.

I will stick with Bitcoin because it's easier to trade it and I have the possibility to be my own bank. I can withdraw my coins to my hardware wallet and I will not have to worry about 3rd parties but if I buy Gold virtually, then I won't feel safe. I'll feel safe if I buy real gold but as far as I know, rates are bad when you buy small quantities from typical sellers.

Gold has been traditionally used as a currency and store of value for centuries. It's no-brainer that there will be more money flow in Gold than in Bitcoin but it won't reduce Bitcoin's attractiveness. Bitcoin is a brand new currency with still lots of potential, gold is only a stable one. What makes currency attractive? ROI, so in terms of attractiveness, Bitcoin outshines Gold.

When you say all about ROI, I think you are mainly referring to investing but that is also what we are talking about here. If let say it's about the other way or when are only prioritizing gold as an accessory, I think its value can still appreciate over time.

It is still gold despite of being deformed and made for that purpose. I can only see two advantages there in fact, while Bitcoin can't be like that because it doesn't have a physical appearance, though others might still consider it as a decoration to their phone or wallets only to tease or brag someone else that they have lots of money or investment. If about risk, gold also has it because its value can also go down sometimes and then we can lose it or it will be steal to us by the thieves.

I really doubt that, people are not investing into crypto because they think that crypto is the alternative to gold when gold isn't doing fine, they are investing into crypto because they do not think that gold is doing that well, and that's the most important part. I believe that we are going to end up with a reasonable approach with the gold vs bitcoin talk.

Gold is boring and there is really nothing wrong with it, we need to consider the fact that this is going to be normal without many issues and this is why we believe that it is going to be a very decent situation. In the end, we can't really consider how things could change, so it is going to be what we can do in the end, we just need to consider how it can grow to be a bigger deal in the end. Bitcoin is far better and gold is not that great and bitcoin could make you rich while gold will not make anything, it's safe but it is not really that profitable so to me it doesn't mean anything at all.

I also think like that, bitcoin is more guaranteed and promises profits many times the original result, rather than the price. Indeed, gold will continue to rise as time passes, but the increase in the price of gold is not as fast as the increase in the price of bitcoin, it could be 3 to 4 x the price has increased several times, so I think the attraction of bitcoin is stronger than the attraction of gold, because for ordinary people it is more guaranteed to buy gold than invest in bitcoin because they don't understand how bitcoin works, because of limited access to technology, as time goes by it's also a good idea for us to invest accompanied by saving a little of the profits from bitcoin to invest in gold, we can invest anywhere as long as it is from the profits we get from bitcoin.

This topic would have been better off titled, Rising Bitcoin value—"will it reduce Gold attractiveness”, because since the creation of Bitcoin the price has been on a steady increase, And now talking about attractiveness, both individuals/institutional investors are now rushing into Buying Bitcoin, thus even reducing Gold's attractiveness as a hedge against inflation and Bitcoin has now outperformed Gold in terms of utility cases and functions—in the sense that, Bitcoin is money and serves as a medium of exchange, hedge against inflation, Universal asset store of value, Bitcoin is freedom, secured, Decentralized and more liquid than Gold and Just to mention a few.

Gold and Bitcoin are Unique commodities, and they function slightly different, Bitcoin is digital Asset or can be considered a digital Gold by numerous people, whereas Gold is a physical asset, both exist differently, In this regard, I wouldn't see any reason why Gold will reduce attractiveness of Bitcoin because has Gold existed before Bitcoin.

Bitcoin and gold have their own investors, and the increase or decrease of either one will not affect one, because each investor already has their own preferences, so the increase in the value of gold will not affect the attractiveness of bitcoin directly, but there may be a small effect, but it is not necessary to consider.

Gold probably remains as a go-to investment by the majority of traditional investors whenever they foresee the economy about to enter rough waters. This option has probably been tested and proven for many decades, even centuries if we consider gold's value. But I don't think this is necessarily detrimental to Bitcoin because the money that goes into gold is probably not the same money that could have gone into Bitcoin. I don't think many of those who consider gold as a safe haven in the face of global turmoil are necessarily torn between Bitcoin and gold. Despite rising adoption, Bitcoin largely remains as a niche market.

However, there are definitely those who diversify. Despite gold's solid track record, investors are investors and the prospect of return is still dominated by Bitcoin. Gold has not yet broken it's inflation-adjusted ATH. Those who have laid their eyes on Bitcoin would hardly shake off its attractiveness.

I agree with most of the answers, which are logical in a forum like this, bitcoin forum. Gold appreciation will not reduce the attractiveness of bitcoin.

Now, I do not agree with the opposite thesis, most famously held by Michael Saylor, that bitcoin will come to decapitalize the entire gold market. There is an ancient tradition of gold, and it is also used in jewelry and industry. Investment gold, the kind you buy bars of and keep in a safe, is a minority use, and I think it can be quite decapitalized, but not the rest.

But so far that has not happened, if I remember correctly, a few years ago the capitalization of gold was 15 trillion but now the capitalization of gold has increased to more than 16 trillion. The increase in gold capitalization could be due to the increase in price as we have seen and most likely due to the increase in supply, as countries are still mining gold non-stop. Meanwhile, bitcoin's market capitalization has remained above $1 trillion to date.

Many people will say that bitcoin's capitalization will soon surpass gold but I doubt it and I don't think it will happen anytime soon. Apart from being an investment, store of value and safe haven, gold is widely used in most industries while bitcoin is only used as an asset. The demand for gold will still be much larger than bitcoin, which is why I don't think bitcoin will come to decapitalize the entire gold market or surpass gold in terms of capitalization.

The price of gold recently breached $2,500 an ounce, boosting investor confidence against the backdrop of a slowing global economy. It is generally considered a stable and secure asset, so it could quite easily be worth $2,700 an ounce or more toward the end of 2024. Since gold can be used as an excellent hedge against financial instability due to its stability, interest in digital assets like cryptocurrencies remains quite high given their ability to yield such a great return on investment and their potential for technological growth. Hence, in choosing investments, investors have to set off against the stability offered by gold with the prospects offered by digital assets.

That's a difficult question to answer. Over the years of Bitcoin existence, its long-term growth was incomparably higher than that of gold. So gold was kind of a safe option with lower profit, and Bitcoin was a riskier option with much higher profit. But things might be different with Bitcoin now, considering how mild its growth was from 2021 to 2024. Maybe we'll see another bull run, showing that Bitcoin is still a much more profitable option. But maybe not, and then gold will indeed be a very attractive option to many investors.

Everyone is having his own views about these things but still we have to understand these are having own pros and negs as well with Gold is going high, but we are having nothing new it's going for years as it's demand is still on high with bitcoin is having own charm and now someone having love with bitcoin he is not going to accept any other thing because it's running in his blood, and now it's spreading with time.

Increase in price of Gold is surely having no impact on Bitcoin with same happening for the Bitcoin because both are doing drastically and things will be stayed on best level for them, we are having too much use of Gold in jewellery, and it's not going to have cu with surely bitcoin will be having upper hand, but things will be in well-balanced for them and both going to stay in touch for years.

If you compare the price of Bitcoin this year that has tremendously increased,it's not equivalent to the price of Gold which makes Bitcoin more unique and thus will not reduce it's attractiveness rather it'll shine more.

Tho alot of people prefer investing in Gold than Blockchain cause they see it as being natural and with the unstable state of the economy and the world today I think Gold and Bitcoin are playing very significant roles and with time  investors would discover the need to invest in cryptocurrency than Gold.

to see the usefulness and value of the price between bitcoin and gold, with these assets considered to be in great demand at the moment, depending on the people who have and see the usefulness, because between the two, there are advantages and that is certain, depending on the views of each individual to feel the benefits because both are equally important.

well btc has a weakness that gold does not.
btc must have mining and a lot of it.
if mining drops a ton btc may drop in price
we saw this in spring of 2021.

so the already mined btc still needs mining to work.
old gold on the other hand does not need constant mining of new gold to stay valuable.
so one can argue gold is far safer.

not sure what will happen in 30 years time. but gold may keep is value better than btc

 It seems that this does not really reduce the appeal of Bitcoin from the perspective of an Investor, both have very good things for each Investor but we think Bitcoin has a much higher value than gold, even though Bitcoin is currently in decline and the value obtained is still holding and continues to rise slowly, we think this does not tend to reduce the appeal of Bitcoin.

Always nice to hear your, philipma1957, reasoned opinion !
Yes, bitcoin is not a perfect asset and it objectively has both advantages and disadvantages ! And one should be pragmatic and realistic to understand the risks, and not live in “pink fantasies”, as many people do.
And as a result - yes, as long as bitcoin has no official global recognition as a real, secured asset, it will be subject to some problems, unlike the “classic” asset, in the form of gold.
But my personal opinion and my concept is that bitcoin should be accumulated now, for the future, because I believe that bitcoin will still get the status I mentioned above. Even if I don't manage to take advantage of bitcoin, my children or grandchildren will be able to take advantage of it with high probability :).

Since I am older ( 67 j and my kids all died via miscarriages hodl hodl hodl has less appeal to me.

I just got a new leased hyundai sonata hybrid. I cash some of my coin to put down around 12 k maling me have smaller payments for next three years.

I still have more btc and I hodl it. I still mine but way less. I have more silver than gold.

I have lived an easier life with btc than I would of with out it.

Gold has been recognized as one of the profitable investments, especially when the global economic conditions are very unstable, even though gold has existed for centuries, investors still dare to sell gold to buy Bitcoin. Bitcoin's continued growth makes it the most sought-after investment today because its long-term percentage increase is much greater than gold.
Patience in investing will drop the direction in the future, Bitcoin has grown so fast and its price increase in the long term has given investors many times the profit. Gold is still considered a good investment, but Bitcoin is still highly sought after by investors because of the huge potential it generates in the long term.

You should be fearful of investing in anything that is near record highs and anyone who has been investing for a while will have seen many graphs that have spikes. At this point there is more chance of it going back down again than there is of it continuing to rise, it's in new territory which means a lot of uncertainty. Over the long term it seems to be on a steady trajectory so you are unlikely to lose money if your plan is to hold for 20 years. However short term there is much higher risk, as the market could take a hit for any number of reasons in this volatile world. Crypto is a lot more liquid, so is better suited to many investors.

Here I would add some clarifications:
1. It is necessary to understand the reasons for the growth, in order to understand whether it is already a peak or it is still a growth process.
2. liquidity is good, but the volatility of cryptocurrencies can create a lot of negatives for a highly liquid asset

The rise of gold could also mean the rise of other investments and that includes bitcoin. So if we are seeing gold price increase these days, bitcoin on the other hand is also experiencing the same. It’s just that gold has a certain, fixed value that will most likely increase in time, while bitcoin is highly volatile that could show price skyrocketing in an instant and would later on experience a huge price drop in just a blink of an eye.

So if you are a high risk-taker, bitcoin will satisfy you with its highly unpredictable price, that you could turn into a millionaire all of a sudden. So I don’t think bitcoin will reduce its attractiveness as there will always be people who want high risk investments with high rewards as well.

But why would this affect to bitcoin? DAW jones is all time high too, and compared to gold and btc, stocks at least are paying dividends, so if anything is reducing btc attractiveness i would say it's stocks. If you think that people are only buying bitcoin because it could moon, then i would understand your point because stocks and gold are mooning, but imho bitcoin and other cryptos have lots of idealist investors and they aren't looking at the current price trends

The issue should be considered comprehensively, and I pointed out possible reasons - destabilization of the situation in the world and the global economy. This will divert attention away from virtual assets and shift attention to the “centuries-old classics” in the form of physical assets. In my opinion, this can happen. Although it may “help” bitcoin investors to buy additional volumes of bitcoin at a lower price

I think cryptocurrency has good scope and good value on International level and now youngers are getting knowledge of Bitcoin and cryptocurrency because cryptocurrency has power to change the situation of poor people and poor people should invest 2 percent of their wealth in cryptocurrency. They can lose their money but they have a chance to become a millionaire and billionaires because no investment can become rich person speedly as comparison to cryptocurrency. Gold is risky if someone has no knowledge of market and he is investing in stocks of gold because everytime , market goes up and down and man can lose his money and his account could be Wash.

Judging by the gold price chart - the trend has started to change, due to the growth of the dollar value. And the price expectedly went down.... It should be taken into account that one of the main consumers of gold, at least at the official level since 2021, China, began to receive in payment for their goods from Russia ... The reason is trivial - the risks of Western sanctions forced China to block settlements in yuan with Russia, as its raw materials appendage is critically dependent on goods from China. And in this situation Russia will be ready to pay whatever China wants. Now the question is why would China buy gold for its currency (which China is woefully short of) when Russia will give it back at a much lower price and in large quantities? Most likely, we will continue to see a decline in gold prices....

Not that difficult. Gold has a different client-base. It's rare for gold bugs to hold bitcoin.

People who already have gold will keep buying gold, or taking profits and buying stuff.
People who have bitcoin will not dump it when it's low just to buy gold that spiked up. That would be stupid.

The only people that could be affected by this are those who are in fiat, losing 5% a year to inflation, thinking if they should get bitcoin or gold. The problem is that if bitcoin goes down and gold up, like it did recently, it's more profitable to buy bitcoin.

I don't think that's the case. Gold bugs and bitcoin people have many common beliefs. Both hate the FED, both think this current financial system is not sustainable and bound to fail, both say FIAT shouldn't be printed recklessly out of thin air... There are probably other similarities which I can't think of right now.

It is just some gold people don't see btc as a viable alternative to FIAT and it is OK. Some bitcoin people don't like gold and they think it is just another dumb metal or yellow dirt and that's OK too but these people are the minority. The majority who like btc or gold the most, the chances are they probably hold the other asset too. Maybe a lot less than their favorite asset but they do, in case they were wrong about their original choice.

We can increase the number of similarities you mentioned, but in general, the similarities are as you said. The main feature that separates those who prefer gold and Bitcoin is the traditional structure. It is not always seen that those interested in traditional investment instruments switch to Bitcoin or buy Bitcoin to diversify their investments. People cannot give up their habits easily.

Some investors who see the potential of Bitcoin invest in both gold and Bitcoin. Gold is seen as a more secure investment tool, although it does not bring as much profit as Bitcoin. Gold has a certain rate of increase, and those who prefer this investment tool are happy with this rate of increase. Perhaps for them, risk is the main factor that determines many of their preferences.

I don't think rising of gold value will reduce the attractiveness of bitcoin, because bitcoin is relatively scarce meaning it is limited in supply and anything that Is limited in supply has the potential to be more expensive. In other words gold is not limited in supply it is vast all over the universe and it's mined everyday increasing the numbers of gold in reserve. and if it keeps increasing day by day, the value will reduce and definitely people will swap to bitcoin. The only thing why most people prefer gold to bitcoin is because most people prefer to invest in a physical asset over online asset. which you may invest in online asset and lost at any moment with just some little mistake. And moreover the reason gold is popular is that it has also been in existence way long before bitcoin. So it will take time for most people to know about it. Illiteracy is another problem why most people prefer gold over bitcoin investment because they are not educated or are not good in new tech but good in physical asset like gold since there is no need for too much carefulness and mental work.

There is some logic behind this, but the situation in 2021 is very unlikely to happen again.

In 2021, mining was banned in a country which before had more than 50% of the hashrate. There is currently no country with such a high importance, the US may be close to the 40% mark but 50% is unlikely. A complete mining ban in the US is also unlikely.

So what's left as a "scary miner-incited event" is a "mining bubble capitulation". This means that miners' income could be insufficient to sustain the current level of infrastructure. Gradually the weaker players will move out and it could take some time until difficulty is balanced again, above all in the case of a prolonged and deep bear market.

However, the chances that such an event can impact the market as significantly as in 2021 lowers gradually. Each halving reduces the importance of mining as sellers in the market, and even in periods without halving the ratio between miner income and total supply reduces each block. Miners could still increase their significance if the Bitcoin price grows more than the trading (selling) volume and this ratio more than doubles in 4 years, but that is relatively unlikely too.

This means that over time, Bitcoin is very likely to become "safer" each year from such a "miner-incited crash". This doesn't mean it can't happen, as miners are still holding large reserves and would sell some of them in such an event (actually, in the last 24 months they sold reserves according to onchain analysis companies). But if it doesn't happen in the next few years I think such an event would lose much of its "fear potential".

Since the last halving in April Bitcoin has also probably a lower "supply inflation" than gold. See this thread (https://bitcointalk.org/index.php?topic=5507640.0).

Gold is not really for active usage, its passive so no its not a concern its actually confirmation of the general trend of dollar devaluation is ongoing so gold recovering and will far surpass its 2011 pricing.    Remember when dollars were measured in value by the weight of gold that was exchanged, that is still valid comparison now and shows how little the prices would be if not adjusted.  Same idea applies to Bitcoin over time, its price is due to rise.

The increase in gold's price doesn't really affect bitcoin's attractiveness. This is because, besides being a payment system, bitcoin has a small supply growth rate. Gold couldn't offer that. Bitcoin's supply growth rate is slowing. It may cause deflation, which will raise bitcoin's price.

And I would not consider people who bought gold purposely to have used it as their investment. I'd rather see them buy gold as a safeguard against inflation and potential civil unrest.

It is not necessary to say that the increase in the price of gold will reduce the attractiveness of Bitcoin, because Bitcoin already has its own attractiveness, even when the price of gold increases, it will only attract people who want to invest in stable assets, and for people who believe in the potential of Bitcoin will still choose to invest in Bitcoin. And also the price of gold will not always increase, because at one time either due to political turmoil or other reasons, it will affect its price, and maybe its value will also decrease, so in the long term the potential price of Bitcoin can really outperform gold and that is what makes more people still choose it.

We should not mix what's not necessary, Bitcoin is a beautiful asset, a top one for that matter in the cryptocurrency world, while Gold also lead in its own classification, they are both leaders that can coexist in the financial market without any issues, especially when they are not even of the same classifications. People worry too much about the two, it's awful, tell me, when Bitcoin rose to its ATH in March, was Gold not rising? That means that the two are almost completely independent of each other, we should stop the misconception and use the reality of the market to judge the two.

For now, I trade and invest in Bitcoin and Gold and I treat the two like precious assets without sentiments, for I'm neutral about the two in terms of the one I love best, I love both. They are always good if we know how to deal with them, and for Gold, I only trade it, but for Bitcoin, I trade and Invest it, which proves that I deal with Bitcoin the most.

Creating an online asset with a limited supply like bitcoin or even less is not that difficult, so I don't think that just because bitcoin has a limited supply it will be more expensive. The value of bitcoin depends on its use case, it is a currency, the only decentralized asset so far. It can be said that supply also plays a role in creating the value of an asset, but the use case is the main factor that determines the value of that asset.

Also, I disagree when you say that the value of gold will decrease as supply increases. As OP mentioned in his post, gold price is up over 20% since the beginning of the year and gold market cap is 16x that of bitcoin.

Investing in gold or bitcoin depends on each person's preference, so I think when the price of gold increases, it will have almost no effect on the attractiveness of bitcoin and vice versa. The growth of Bitcoin has never diminished the appeal of gold, as evidenced by the fact that gold remains a favored asset by governments, institutions, and large investors...whenever the world economy is unstable and the price of gold continues to increase over time.

Exactly since right now we already see the price of gold rising but did we see us get attached more on gold and divert our attention to it? Well provably not usual bitcoin main stay or shall we say a bitcoin investor since start will not go anywhere and just continue to invest with bitcoin. Maybe there are some scenarios that people will also grab gold but for sure they spend less percentage on it and still want to maximize their asset to bitcoin.

Maybe for other who don't know bitcoin they might choose gold first than bitcoin since this situation will depend on the level of understanding of people who like to invest on those asset mentioned. But for sure nothing will lose an attractiveness on both asset since they are good to have. So maybe people might just think about splitting their funds so that they could able to have those valuable asset to hodl for long term.

I think OP created this topic because there are a lot of debates between gold and bitcoin on the forum, and topics between gold and bitcoin always attract a lot of attention.

I agree with what you say, we don't need to mix or compare when we can have both. Both are considered as the best assets and investments today, and owning both is the right thing to do instead of comparing them.

By the way, we always talk about diversification but it is hard to understand why so many people always praise bitcoin and criticize gold. I wonder, are those who are talking bad about gold, are they diversifying their investments like they said or are they putting all their eggs in one basket?

Maybe gold price can rise for more since that will depends on the scarcity from gold itself. But that will not reduces the attractiveness of Bitcoin because people who already see the advantage will still want to use Bitcoin. Gold and Bitcoin have its own fan and they will continue investing their money to both gold and Bitcoin.

In the unstable state of the global economy, people will search for what they want. If they like gold, they will invest in gold and so do with Bitcoin investor. And with the popularity of Bitcoin from time to time, people will realize that they can also use Bitcoin as their investment.

That will help them to have both type of investment that will benefit them. But if they don't want to invest in anything, that will be up to them. Maybe they have their own reason to use the other way to survive in the hard situation.

Having sanctions as the new "warfare" is something that west likes to do because west could go a lot longer without east, then east can go without west and this has been proven by the west during the Russian Ukrainian war. This is why I think gold has a lot of value to all these nations, including China of course, but the reality is that if USD stays strong then there won't be any need to it at all and USA could just continue printing without worrying about it at all.

We are talking about a nation that is so powerful that even with insanely high level of inflation that USA has, others had bigger so they stayed strong still, whereas China had their own type of 2008 mortgage crisis happen right on the covid time, which bankrupted almost all the big huge companies they had.

I don't think that this detracts from the attractiveness of bitcoin because at the end of the day gold has its own market just like bitcoin and when they are currently on the rise then maybe what I can say is that people are starting to become more investment savvy for their future and moving from savings to investments.
That's still pretty good because they realise that when they save money in the bank then indirectly the value will continue to shrink but it's a different story if this is invested. Although the asset is gold but with them literate towards a better future of course it is a good thing but that does not mean bitcoin loses its appeal in this case because after all everyone has their own perspective and choosing gold could be because they want a safer one in terms of risk because we know that bitcoin the risk can be much greater than gold.

gold will only reduce bitcoin attractiveness if it could grow as fast as BTC and yes as you said, gold has its own investors, the people who are investing in gold are usually looking for a hedge against inflation.
while BTC investor looking for great and fast return that could help them grow their generational wealth.
entirely different market i'd say.

so the saying that that gold with its recent pretty minimalistic value increase gonna reduce bitcoin's attractiveness is just an empty word in my opinion.

Even crypto investors are diversifying their assets into various other asset classes including gold to maintain asset stability from the impact of inflation and global economic uncertainty, gold investment has a definite growth potential in the last few years and the growth of gold prices this year is very high which has never been achieved in the history of gold prices. However, the growth of gold prices does not mean that the market demand for bitcoin will decrease because reviewing the annual chart shows that bitcoin has increased in price significantly more than gold and crypto investors have generated very high returns from the assets they hold in their portfolios.

Yes, gold holders still dominate over crypto asset holders, but the statement that the increase in gold can minimize the bitcoin audience is very inaccurate because every day many new crypto investors continue to increase for future profit opportunities.

That is mainly because we already know bitcoin is better than fiat, and we know that gold is better than fiat as well. So that means these two are the finalists on the asset competition, whichever one wins your mind, you invest into that. Gold is not a bad choice, and if anyone wants to invest into gold then I wouldn't stop that person, it is not a bad idea at all and I respect anyone who does that. But, I still prefer bitcoin because I believe that the profits could be a lot higher there, it is not a simple thing at all.

We should consider this to be something that can get a lot better, and bitcoin has more volatility as well so trading bitcoin could be a lot better. In either case, gold or bitcoin, people will make more than fiat without a doubt, holding fiat is the worst thing ever. There is also a chance about stock markets if you want to invest, but it is not a thing that you invest, they are all companies, so you would have to trust those companies that you invest into, and I do not trust any company to do right by shareholders.

I think good is a good alternative to Bitcoin, if you are looking to diversify your investments (which is a very smart idea - not to put all eggs into a single basket).

But as far as profit goes? Bitcoin has always gone higher and people make by far more profits with Bitcoin than with gold or any other asset.

So I will stick to my opinion that gold will not reduce Bitcoin's attractiveness.

I also prefer bitcoin and would choose it over gold but I wouldn't feel bad if someone chose gold over bitcoin. After all, both are potential and safe investments, and which asset to invest in will depend on each person's needs. For those who prefer stability and are looking for a hedge against inflation, we cannot force or advise them to choose bitcoin while gold would be a more suitable choice. And for those who are hungry for wealth and are willing to take bigger risks to make a breakthrough in life, bitcoin is the perfect choice.


@OP, because in my opinion the needs and preferences of gold and bitcoin investors are not the same. So I think the rising price of gold will not reduce the appeal of bitcoin and vice versa, bitcoin will never reduce the appeal of gold even if it reaches $100k.

While Gold prices have risen by 20% in a year, most of the cryptocurrencies including Bitcoin have risen by way more than that percentage. Bitcoin's price in January of 2024 was around $42k and now it's at $56k, that's more than 33% and if we go a few months back then at that time Bitcoin reached a whopping value of around $73k, and that's more than 72% growth in a year. But, if we look at some altcoins like Solana then the growth was way higher in those altcoins.

Gold's up, Bitcoin's mooning. Different animals in the same jungle. Investing is about psychology not about numbers. Gold? That's grandpa's safe haven. Bitcoin? That's the rebel yell of the digital age. People purchase into a narrative rather than gold or Bitcoin. It's about their interpretation of that shining rock or line of code. It expresses their viewpoint and their values

Sure, gold is rare. But one other thing Bitcoin boasts is a cult-like following. These people believe rather than only invest. They consider Bitcoin as a revolution rather than as a tool. The planet is insane, and for those who see the storm approaching Bitcoin is their life raft. Gold could be the traditional guard, but Bitcoin? Whether or not you like it, that is the future

I do agree that bitcoin is far better and I use it too, I do not feel the need to change it and I will keep on using it as much as I possibly could. I am not saying that it is going to be easy or anything, I am just saying that we are going to probably see it change, and it will not be the same. This is why I feel like we are going to end up with a bad result if we are not careful, it's the most important part and will definitely result with something that will not be all that easy to fix.

We should avoid this as much as we can, and do something decent, it's just clear that we are going to have some trouble. We know it is not easy, but let it be for the time being and if people do not trust bitcoin as much as we trust it, then it's their own problem. I trust it, and I find it better than any other asset, in fact I find it better than any other currency as well, and I am happy with that, it's just the way it should be going without any issues at all for me.

first of all fuel costs have decreased in the last few years so the VALUE (wholesale) of gold has got cheaper..
however the PRICE has gone up to a new ATH
this is bad for investors

bitcoin however has seen both the value(underlying cost(mining) go up and so the price is now closer to value,

bitcoin has more potential to go up than gold does

Agreed because each assets has their targeted investors. Bitcoin is more attractive to new investors that were born during the time when digital currency is becoming more popular while gold is for more older investors that many of them do not understand Bitcoin. Asking someone like bill gate between the two which one is he going to buy and he'll say gold but asking someone that's a youth to choose and they'll prefer Bitcoin.

Gold could be doing well now but it can't outperform Bitcoin hence choosing gold over Bitcoin is a wrong decision. Gold is a safe haven but not a better investment when what you have in mind is to make profits from your investments.

Yes, that's right. The increase in gold prices will not affect people's interest in bitcoin. Because gold cannot be equated with bitcoin, gold is a hedge asset that has been around for centuries. Now if we review the main purpose of creating bitcoin, it is none other than to facilitate transactions, and now it is also a hedge asset. So I think the increase in gold prices will not affect people's interest in bitcoin because bitcoin is an asset that has potential in the future.

Moreover, if a global crisis occurs, buying gold is not efficient, transferring assets from fiat to physical gold requires a long process (must first buy from a gold shop or request printing from digital gold to physical gold which is not instant). not to mention the risk of being robbed or lost which is very vulnerable because during a crisis these things have the potential to happen. If BTC is very liquid (transferring from fiat to BTC or vice versa can be done easily) our assets will be safe from the destruction of fiat currencies when a crisis occurs. So I think the appeal of bitcoin will not decrease even though gold is currently increasing.

The spread on gold should be far worse then Bitcoin, if thats not the case you cant exactly blame gold its just that Bitcoin needs to do better.   Its a competitive market, the reason for your loss may not be your opponent beating you but your own failings towards the customers.
    They are two different products, we could compare Bitcoin to anything but obviously people use dollars and their own national currency savings in contrast to Bitcoin.  If people feel the BTC price is going lower often they will just save plain FIAT, thats the short term view but people are simple if their views of a product benefiting them personally or not.  

Ultimately BTC has outperformed gold, FIAT or many other considerations but its also true at times people avoid holding any Bitcoin from fear of its volatile price and possible losses.    I believe the most important fact for BTC will be usability not this idea of holding gold or holding BTC, people spend most of their money and this is the market share BTC should be aiming to capture really not so much the capital holdings.

Gold is still the most sought after asset in the 2022 crisis or even in the war between Ukraine and Russia, most governments and institutions tried to buy more gold at that time, not bitcoin. Or with fears of an impending recession, many large investment funds and investors are buying gold in large quantities because they know that it is the best safe haven in the world, not bitcoin. That is also why gold prices are still rising despite the stock market and crypto markets falling in recent days. So, it would be incorrect to say that buying gold is ineffective during times of crisis or recession.

Also, I don't see any difficulty or barrier in buying gold no matter what situation we are in.

I do not really see the problem, even if a massive economic crisis started tomorrow there will be room for both gold and bitcoin to grow, because during those circumstances people will try to find any means to store their value and get rid of their fiat, so even if the price of gold increased dramatically, there will be a lot of people that will not know how to buy and store their gold, and since bitcoin is a digital asset, they may prefer to buy it over gold.

It must be admitted that gold has been one of the investment options for a long time, and for some people gold will always be one of the investment options in the future. In the last decade, Bitcoin has offered better opportunities in terms of profit and security, but I believe the two types of investment can go hand in hand, quite a lot of people invest in both. The current and future generations will most likely tend to choose to invest in Bitcoin because of the ease of moving their assets. But for now, trust in Bitcoin and other crypto assets has not been able to beat gold on the one hand because of the lack of regulation or legal basis in many countries. However, in terms of profit, Bitcoin clearly offers greater and faster profits, Personally I also chose bitcoin for those reasons.

Gold’s rise to over $2,500 is largely driven by inflation fears and economic uncertainty, especially with the possibility of interest rate cuts . While it might seem like this could divert attention from crypto, I wouldn’t say it’s that straightforward.

Investors view Bitcoin and gold as serving different purposes. Gold is a more traditional kind of haven, but Bitcoin, for as volatile as it is, still is "digital gold" and presents higher return possibilities. The recent introduction of spot Bitcoin ETFs and growing adoption could keep crypto relevant even with gold’s current surge. So, while gold is doing well, I don’t think it’s going to completely overshadow Bitcoin. Both have their place in today’s complex economy.