Btc and gold can now be called "safe"

[Coyster]

At the point when the pandemic shed it's milk teeth, investors and individuals became aware of how vulnerable fiat is in a situation of an economic meltdown. After the lockdown, that left the economy staggering, we've seen the printing of more money out of thin air that can create inflation, third world economies and poor countries are as well going to be hit with recession and possible hyperinflation. What all this means is the devaluation of the fiat currencies. But I've been closely monitoring gold/bitcoin prices during this pandemic, in case you didn't know, gold price surged above 2k per ounce for the first time ever last week and analysts think it can get to 4000 in a few years.

Bitcoin has also surged to 11k despite the pandemic, imo gold and btc are somewhat "safe haven" assets, this pandemic is a real test to know how well they can hold up investors funds, when everything is crashing and they have been doing great in the market, the number of people that will turn to these assets as time goes on will continue to increase, to evade inflation and the devaluation of their money in their bank accounts, and it will continue to push their prices up.

P.S. I do not think it's early to tag them as safe assets, people previously said they were yet to be tested in a dire situation, for me, that test came this year, with the pandemic and it's effects.

[Botnake]

Bitcoin has also surged to 11k despite the pandemic,

Make that $12k as bitcoin has break to the price today.

https://cointelegraph.com/news/bitcoin-price-tackles-12-000-after-breaking-through-a-key-resistance-zone

imo gold and btc are somewhat "safe haven" assets, this pandemic is a real test to know how well they can hold up investors funds, when everything is crashing and they have been doing great in the market, the number of people that will turn to these assets as time goes on will continue to increase, to evade inflation and the devaluation of their money in their bank accounts, and it will continue to push their prices up.

I think gold is safe, that's proven through ages already, bitcoin on the other hand might be performing the unexpected this year, I can't say it's safe to invest in bitcoin as I have not see its stability yet, it's price bullish movement in short term doesn't prove that it's a safe asset to invest with, however, I believe that bitcoin is going to grow in the long run, but it's volatility will continue to show, hence I don't call it safe.

P.S. I do not think it's early to tag them as safe assets, ....

I think it's early for bitcoin, not on gold. 

[DevilSlayer]

Bitcoin has also surged to 11k despite the pandemic,

Make that $12k as bitcoin has break to the price today.

https://cointelegraph.com/news/bitcoin-price-tackles-12-000-after-breaking-through-a-key-resistance-zone

imo gold and btc are somewhat "safe haven" assets, this pandemic is a real test to know how well they can hold up investors funds, when everything is crashing and they have been doing great in the market, the number of people that will turn to these assets as time goes on will continue to increase, to evade inflation and the devaluation of their money in their bank accounts, and it will continue to push their prices up.

I think gold is safe, that's proven through ages already, bitcoin on the other hand might be performing the unexpected this year, I can't say it's safe to invest in bitcoin as I have not see its stability yet, it's price bullish movement in short term doesn't prove that it's a safe asset to invest with, however, I believe that bitcoin is going to grow in the long run, but it's volatility will continue to show, hence I don't call it safe.

P.S. I do not think it's early to tag them as safe assets, ....

I think it's early for bitcoin, not on gold. 

I think there is no such "safe investment" because all have risks, in terms of gold the risks are low because it is proven over time that its price is gradually increasing but in terms of bitcoin, I do not see it as safe investment because of its volatility. There are a lot of factors that should be considered before investing through bitcoin like proper risk management especially about allocation and stop loss levels and also validating the trend in order to know when is the right time to enter and exit in the market.

[Poker Player]

Although I agree with most of the analysis you make, I'm not sure that most people will buy bitcoin to protect themselves from fiat devaluation.

I wish that was the case, and if we look at what has happened recently, it seems that way, but if we look at what happened at the beginning of the pandemic, it was not like that at all.

People sold assets to get liquidity, and everything went down, including gold and bitcoin. Now we are in a calmer situation but at any time people can start selling to get liquidity.

After all, for most people, bitcoin is an asset, not a currency. (Not for most people on the forum.)

[Charles-Tim]

Gold has been a safe asset even before the creation of fiat currencies but about bitcoin, it is becomming stronger year by year, many countries are now accepting bitcoin as a form of payment, many countries have even legalize it. In italy, bitcoin is the third latest payment methods after Paypal and credit cards, the USA has over 6000 bitcoin ATMs, bitcoin is used to pay in hotels, dancing bars and used as other means of payments in Slovenia. This years 2020, Australian residents can now pay for bitcoin at more than 3,500 national post offices, French court considers bitcoin money, cryptocurrencies are now legitimized in South Korea, Australia and India. Also, there are many charity given in the world accepting bitcoin as a payment method. These are just few of such above.

With all these said, bitcoin is not at any experimental stage again but is not a currency to be called money. So, people should consider bitcoin as a safe asset.

Only the issue on ground now is the invention of quantum computers, the primitive quantum computers is never a problem, the problem are the ones that will be created later which will be more sophisticated, but indeed not a problem as bitcoin will also have a quantum resistant EDCSA (Elliptic Curve Digital Signature Algorithm) that will not allow the computers to reveal private keys from addresses.

Make that $12k as bitcoin has break to the price today

Bitcoin increase above $12000 today, but the $12000 resistance is so strong, and the price is still around $11,960 at the time of posting this.

[maydna]

Bitcoin is bitcoin, and gold is gold. Gold will be safer than bitcoin because the gold price is not going up and down significantly, and the gold price tends to be stable. People know gold as a safe investment, and they don't know if bitcoin can be the same thing as gold, even most of them still don't know if bitcoin exists. Bitcoin is not safe until now because bitcoin prices are still moving up and down many times every day, and we can get a heart attack if we don't know what is happening in the market. We don't know when bitcoin can be a safe investment, and if you want to have a safe investment, it is better to buy gold.

[mikeauerbach]

Gold has always been a safe haven, Bitcoin is still volatile.

[enhu]

Bitcoin is bitcoin, and gold is gold. Gold will be safer than bitcoin because the gold price is not going up and down significantly, and the gold price tends to be stable. People know gold as a safe investment, and they don't know if bitcoin can be the same thing as gold, even most of them still don't know if bitcoin exists. Bitcoin is not safe until now because bitcoin prices are still moving up and down many times every day, and we can get a heart attack if we don't know what is happening in the market. We don't know when bitcoin can be a safe investment, and if you want to have a safe investment, it is better to buy gold.

Butr investors are investors who also want profit so why would they dive their noses to stable like gold when they can get profit and investment the keeps going up like BTC.

If an investor buy gold for the reason of it being safe then he probably have not heard of BTC or some crypto projects before because if he would and have learned it deeply like most of us in crypto, he'd be buying BTC.

[Oasisman]

Bitcoin in general may not be considered as a safe haven mainly because of it's high volatile nature, but It would be a totally different story when the investors consider and use Bitcoin as a safe place to store and avoid the hyperinflation and possible devaluation of monetary assets in the bank. It is inevitable for some of the investors to doubt whether Bitcoin will be a safe haven in times like this or not.
While Gold on the other hand is always a safe haven long before any tools or medium of exchange we are using in the modern era.

[The Cryptovator]

Most probably people losing their faith from centralized organizations and they like to hold their valuable assets by themselves. For example, if you go to the bank to withdraw your deposited funds, and if the amount is quite big then the bank could ask you lots of questions. So I think people do not like such as questions regarding their own funds. As a result, they like to store gold who aren't familiar with crypto-currency. And those are familiar with crypto-currency and have faith in it they are storing bitcoin into their wallet instead of keeping their fund into the bank. So both assets demand is increasing even during the pandemic.

In my country, banks asking so many questions during withdrawal funds like why withdrawing, where to spend, and so on. Our country's population now like to hold their fund to their hand instead of deposit into bank due to fair of bankrupt. But if you are holding gold and bitcoin you can sell it anytime you want, no one will raise any questions. That's how gold and bitcoin showing positive movements during this global pandemic.

[Cnut237]

imo gold and btc are somewhat "safe haven" assets [...] P.S. I do not think it's early to tag them as safe assets, people previously said they were yet to be tested in a dire situation, for me, that test came this year, with the pandemic and it's effects.

Gold is a proven safe-haven asset. Bitcoin has the potential to be a safe-haven, but this remains a possible future state.

Yes, the response of crypto prices to the pandemic has been encouraging, but we can't say that bitcoin volatility has suddenly disappeared for good. It remains comparatively low volume when compared to traditional markets, it is of course unregulated, and is still regarded with suspicion and mistrust by most governments. It has the potential to be a safe-haven and the ultimate store-of-value... but at the moment, it is seen much more as a highly speculative asset.

I do agree with you that the signs are encouraging, but I still think we are a long way from that end-state at the moment.

[$crypto$]

If gold can still be called safe because the decline is not so significant, it will remain more gradual in its increases in the next few years and of course investors will see how gold reacts with the increase in several weeks, maybe gold will be safer than bitcoin.
We know that in the past month bitcoin has become the world's spotlight because of its rise during the crisis, but bitcoin still shows itself to be a safe investment, that's only partially, but for me it's still not safe enough because it doesn't crash tomorrow or the day after it could be something happens in bitcoin.

[Botnake]

I think there is no such "safe investment" because all have risks, in terms of gold the risks are low because it is proven over time that its price is gradually increasing but in terms of bitcoin, I do not see it as safe investment because of its volatility. There are a lot of factors that should be considered before investing through bitcoin like proper risk management especially about allocation and stop loss levels and also validating the trend in order to know when is the right time to enter and exit in the market.

Any investment is never safe, they are only measured based on risk, from low to high, and it also depends on the investors on what investment they will take as normally when the risk is low, the return is also low, while high investment gives higher return if successful in investing.

Big investors will look for a lower risk investment because they have bigger money to invest so they might be satisfied with the return, but most investors actually like big return so we are taking a high risk investment and bitcoin is suitable for us.

Make that $12k as bitcoin has break to the price today

Bitcoin increase above $12000 today, but the $12000 resistance is so strong, and the price is still around $11,960 at the time of posting this.

But that resistance would not last, bitcoin will again be victorious breaking it soon, sorry. Am I too optimistic?

[minairia3]

Gold has always been a safe haven, Bitcoin is still volatile.

Really? As far as economy concern its price still depends on the economic value too. While bitcoin surpass the tragic crisis of the pandemic. Comparing both, I can say gold is much stable when it comes to price value while bitcoin has a very volatile characteristic. What I both like about them is their presence serve as a safe heaven for some investors. Like what OP explained it was tested during the covid situation.

[exstasie]

P.S. I do not think it's early to tag them as safe assets, people previously said they were yet to be tested in a dire situation, for me, that test came this year, with the pandemic and it's effects.

On the contrary, I think BTC and gold are on the rise because they are risk assets. For months now, the market has shown increasing risk appetite now that the Fed has made clear it will not tolerate a bear market. Now all the cash freed up from liquidating investments in February-April needs to go somewhere to make returns again. It's basically being piled into the market everywhere now. Very weird times.....

[Finestream]

Gold has always been a safe haven, Bitcoin is still volatile.

Really? As far as economy concern its price still depends on the economic value too. While bitcoin surpass the tragic crisis of the pandemic. Comparing both, I can say gold is much stable when it comes to price value while bitcoin has a very volatile characteristic. What I both like about them is their presence serve as a safe heaven for some investors. Like what OP explained it was tested during the covid situation.

Gold is a safe haven and bitcoin is starting to gain the trust of the investors, but let's hope it will not dump again.

I'm afraid that while we continue to praise bitcoin on its performance this year so far, it might be manipulated again and just like before it will again result to a big dump and the market panic will start. The one year performance of bitcoin is more on like a rebound, not totally accelerating consistently, so it's hard to judge that it's a safe haven when it wasn't so consistent yet like what gold have showed.

[ChiBitCTy]

There's a difference between "safe-haven" assets/investments and assets/investments being considered "safe".  I in no shape form or fashion could call cryptocurrency of any kind "safe".  Gold has been around a lot longer but I still wouldn't call it "safe".  In terms of investments and the investing world, yes I would consider them "safe-haven" assets.  ..but remember, there's a big difference between the two.

 "A safe haven is an investment that is expected to retain or increase in value during times of market turbulence. Safe havens are sought by investors to limit their exposure to losses in the event of market downturns. However, what appears to be a safe investment in one down market could be a disastrous investment in another down market, and so the evaluation of safe haven investments varies, and investors must perform ample due diligence".- https://www.investopedia.com/terms/s/safe-haven.asp

[Latviand]

Although I agree with most of the analysis you make, I'm not sure that most people will buy bitcoin to protect themselves from fiat devaluation.

Some people here are investing in bitcoin to fight inflation, and people are trying hard to fight it.

Although fiat devaluation is the same with inflation, that's not the focus here, but the main focus is that people should prioritize investing in gold or bitcoin with or without economic crisis.

After all, for most people, bitcoin is an asset, not a currency. (Not for most people on the forum.)

It depends on how people will deal with the benefits of bitcoin. Some are using it really as an asset, as a store of value, and as a source of profit. But to some people, they also use it as a payment tool for their transactions, not small transactions, but wider or huge transactions like immovable properties.

[bearexin]

The luckiest thing about gold I can say is the fact that my mom and dad are old school kind of people and they had a bunch of gold saved up and they totally forget about it, they get one gram per month and just do not even touch it, they even have debt but instead of paying their debt they just keep collecting that gold thinking they will pay the debt eventually anyway when they do not go into further in debt and just go back to their regular life so they paid of all almost all their debt over time in years anyway.

But now they have so much money via gold, they weren't expecting this much increase, they were expecting to just save money and maybe profit a bit but I think they have doubled their money. You know what I find funny? In bitcoin world I could have doubled all my money, even close to triple it in the past 4 months...

[BrewMaster]

bitcoin has always been a safe haven even before it reached $12k and long before that in its early days back in 2009. it is a safe haven asset because it is decentralized, unique and 100% secure. nobody can take it from you short of torturing you to get it out. gold and other assets can easily be confiscated or even stolen.

the only problem with bitcoin, which still exists, is that it is new and volatile. so it brings a certain level of risk with itself which is why it is not yet widely accepted by people around the world.