Bitcoin vs. Gold: which has been more of a safe-haven asset in 2020?

[Kakmakr]

It all comes down to stability when you have to consider a real safe haven. Yes, over a cherry picked period ...Bitcoin might have looked like a better safe-haven, but on average the Gold price was more stable. The extreme volatility with Bitcoin scare investors off when they have to decide what investment option is the best for them.

If you want to use Bitcoin as a safe-haven, then you might be in for the long haul... because you have to get in at a low price and then ignore the volatility, until you want to sell at a higher price in the future. 

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[skarais]

I think the price charts of these two types of investment can explain your doubts about safe-haven assets. If you invest in bitcoin on January 1, 2020 and start hold it regardless of market volatility, then you make a profit today. Lets say you buy 1 bitcoin on January 1 in the range of $7200, and if you sell it today, you will make a profit of $2450 at the current price. I think so far you understand how this investment works. But for safe-haven assets, I would choose gold because it does not have a high risk of volatility.

[slapper]

with barely 6 months into the year, 2020 has been dramatic and very eventful with the stock market slump, march 12 Bitcoin sell-off, oil price trading in the negative, etc. From the investment perspective, taking YTD Bitcoin and Gold performance amidst this ongoing pandemic which asset has upheld the safe-haven narrative between gold and Bitcoin?

In my opinion, gold is a great stable asset that can help you to protect your capital and money during this pandemic. Gold is most trusted by the people and there is no way gold can fluctuate 30-40% in a month.
Bitcoin, on the other hand, can give you a big profit if you have a good entry and good exit. For example, in early April, Bitcoin dropped to $2000. If you bought them, you would probably earn 400% right now
I guess there is no place that can be called a safe-haven asset. It's just about the people who are wiser than the others

[NotATether]

I'd bring up a different opinion and say USDT is the best safe-haven asset, more than gold or bitcoin. When you think of it, USD is the world reserve currency, and USDT is a stablecoin whose price is always being changed to match USD, though in practice there is a tiny price difference between the two. So if someone's holding X amount of USDT, the value of that cannot decrease because every other currency is being traded against it, so those are the ones that go up and down. The same reasoning can be used to show that someone holding USDT never *gains* more money.

Of course this opinion is only valid in an international setting, in a single country or group of countries that shares the same currency, such as EUR, as long as you only trade other currencies, including bitcoin and gold, in euros, and everything there is priced in euros, then EUR can be considered a safe-haven asset, but only within the EU.

And nothing I mentioned above is valid if the prices of commodities are raised, since you now have less value to spend it on.

[Guryon_master]

with barely 6 months into the year, 2020 has been dramatic and very eventful with the stock market slump, march 12 Bitcoin sell-off, oil price trading in the negative, etc. From the investment perspective, taking YTD Bitcoin and Gold performance amidst this ongoing pandemic which asset has upheld the safe-haven narrative between gold and Bitcoin?

If you are a person who is much fanatic of gold you can always feel confident on bitcoin over gold. But even so,  I suggest to choose gold when talking about total safety since gold will never lost its value.

[Vishnu.Reang]

First of all, it is not right to compare gold and Bitcoin. Because both of them are very different types of assets. Gold is a stable asset which can be used as a store of value. Gold is having a huge market cap and only a small part of it is being traded every day. However, Bitcoin is not suitable for this purpose due to its volatility. It may take a few years, before the prices stabilize.

[Wafilian]

Gold and BTC are two types of assets. Gold is more stable than BTC. Even if both types of assets are used for trading, you can earn more income from BTC. Gold is considered to be the financial carrier of a country. Not just for 2020. Always gold is a more stable and safe-haven asset than BTC. The price of BTC is always volatile so it is a very popular business medium for traders. So it is easy to say that gold is a more safe-haven stable asset than the BTC.

[Yatsan]

It all comes down to stability when you have to consider a real safe haven. Yes, over a cherry picked period ...Bitcoin might have looked like a better safe-haven, but on average the Gold price was more stable. The extreme volatility with Bitcoin scare investors off when they have to decide what investment option is the best for them.

Look at it in a simpler terms, if you in a platform with a single center support, which is safe the stable or the stable one? of course the gold is our safe-haven which is why nations are getting it to be the nation's reserve. Bitcoin is young for me, though it is a decade years old there are still a lot of rooms for bitcoin to be improved and be adopted. This has been the discussion of the decade, can we not get over with this? we already use gold for ages to store wealth, and not bitcoin. That's all you guys need to know about it.

If you want to use Bitcoin as a safe-haven, then you might be in for the long haul... because you have to get in at a low price and then ignore the volatility, until you want to sell at a higher price in the future. 

There is nothing wrong where do you want to store your value, it does not matter if you are going to gold or bitcoin, what will matter is the future value of what you put in there.  

[eaLiTy]

~
IMO gold will always be safer in the long run because people have more trust in it. Gold has much less volatility than bitcoi. If you are strictly talking about safety, because of that lower volatility gold is safer. The downside is that its value won't change much in the very long term. Bitcoin is still a young asset and has a lot of potential, it is less safe, but has much higher returns possibilities.

It is common knowledge that the timing is very important when you are investing in any asset. Take a look at the price of gold in the past few days, it went down more than we expected. If you are looking at gold as a long term investment then you can apply the same logic with BTCitcoin too, invest whenever you like and wait for the long term and the difference between the two is that you can have an higher profit in a short period than gold.

Fundamentally gold is here for centuries and comparing it to BTCitcoin which is the new kid in the financial industry is a bit childish .

[Findingnemo]

Gold seems the safe heaven in this pandemic but bitcoin took the place of most profitable investment so for an investor the profits are more important than stability so I will say bitcoin performed well even when the whole economic market of the world is struggling.And again don't compare bitcoin with gold anymore because they are not safe and people who loves profits will choose bitcoin over gold.

[BuNga_cute]

I prefer gold over bitcoin if for investment in the long run, because gold is safer and the price is not volatile. So of course gold
as a safe-haven is better than bitcoin. What's more gold is more trusted by the people, therefore gold is very safe as a safe haven.
But for the performance of 2020 bitcoin is still far better than gold, and also bitcoin is more profitable compared to gold.

[Barnabe]

I once heard about a special type of financial asset. In short it was a kind of certificate for gold, but this gold was loaned to another financial entity (to act as a guarantee or a sort of asset for swap) and the certificate would give its owner a certain percentage as interest. I thought it was interesting because the investor would have gold and would also have some returns over time.
Has anyone heard of this ?

[chrisculanag]

For me gold is more safer than bitcoin , because gold are already trusted in over the world and you can hold a real gold as a saving  and wait for the good profit but if we track a bitcoin history , bitcoin is a good one and safer too because if you see the price of this in a past years it is most profitable than gold.

[Sanitough]

I would always go with gold if it's compared with any kind of investment, however I will choose bitcoin in a sense that I like bigger profit so I'm willing to take a higher risk. And with bitcoin, I believe this technology would attract massive adoption in the future and it will result to a significant increase of value due to its adoption.

For typical investors, it's a no-brainer that they'll always pick gold for stability and security, but since we are in crypto, I think we can say to ourselves that we are risk takers who wants bigger return.

[Rosilito]

It is too short of a time for Bitcoin to be a safe haven here while considering the ideology of volatilty. Of course, bitcoin would fell short, anyhow Gold is been here for more than a decade, and is used in a widerscale than Bitcoin has. I had take quick skim with eveyone's answer... and it just leads to Gold winning the debate here, obviously. The time, and the population it has is what made it worthy of being a safehaven. But talking about bigger profit in a short time span, BTC wins here  .

[Sanugarid]

I would always go with gold if it's compared with any kind of investment, however I will choose bitcoin in a sense that I like bigger profit so I'm willing to take a higher risk. And with bitcoin, I believe this technology would attract massive adoption in the future and it will result to a significant increase of value due to its adoption.

Who would pick uncertainty over certainty? 1% of population who claim themselves as risk taker? Let this discussion be the last for a thread whose asking which is which among gold and bitcoin. The only reason why we have bitcoin is because it has a chance to exceed in terms of price after we bought it, in short we are making it as an invest with hollow foundation and trust. We don't even use bitcoin as currency. Yes bitcoin has scarcity, it might get to the point of stabilization but the essence now of bitcoin is just for risky investment, nothing more, nothing less.

For typical investors, it's a no-brainer that they'll always pick gold for stability and security, but since we are in crypto, I think we can say to ourselves that we are risk takers who wants bigger return.

You'll even get the answer in less than a second. Gold will be the safest haven for a long time, until we decide not to value it the way we are valuing it now. how about diamonds?

[TopTort777]

Why nobody is talking about the difference of buying and holding both assets? It is more or less clear for newbies about bitcoin, but how can a newbie buy some grams of gold and how to keep it? In reality it is just a dust. You cant buy a “hardware wallet” for gold and each month spend 100$ to buy more. You can do that on gold trading platform, but I dont know any who I can trust to.

What do you think?

[kesmex]

when the pandemic of the price of Gold and cryptocurrency is really good, both of these assets have increased,
so if you want to choose, of course I choose both of these assets for 2020

[ssamotoev]

It all comes down to stability when you have to consider a real safe haven. Yes, over a cherry picked period ...Bitcoin might have looked like a better safe-haven, but on average the Gold price was more stable. The extreme volatility with Bitcoin scare investors off when they have to decide what investment option is the best for them.
If you want to use Bitcoin as a safe-haven, then you might be in for the long haul... because you have to get in at a low price and then ignore the volatility, until you want to sell at a higher price in the future. 

Have to agree with this one.
Gold shows overall long term stability, Bitcoin on the other side was literally the most profitable asset in this century or something like that

[Vishnu.Reang]

when the pandemic of the price of Gold and cryptocurrency is really good, both of these assets have increased,
so if you want to choose, of course I choose both of these assets for 2020

I can't agree with this statement fully. It is true that the gold prices have risen as a result of the COVID 19 pandemic. The prices have gone up from $1450/Oz six months ago to around $1,700/Oz now. And for a stable asset such as gold, this is considered as a sharp rise. That said, I don't think that the Bitcoin prices rose as a result of the pandemic. I would attribute the spike to the block reward halving.