Btc and gold can now be called "safe"

[thesmallgod]

Bitcoin is good but I do not think it is ok to call it safe haven even though the price has been consistently increasing for weeks now but there is not a concrete reason for this and if we learn from the past, no matter how high it can go, the price can fall deeply within few minutes which makes me wonder if such can be called a safe haven for investment. I know little about bitcoin and I cannot say how sustainable it is to invest or call it a safe haven

[jaysabi]

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.

Bitcoin is definitely not a safe asset. It's a speculative asset, and people who are buying it as a safe haven are taking on far more risk than they're capable of knowing, and that makes it dangerous for those people because the risk-reward of a real safe haven vs. what people are getting with Bitcoin is not comparable. Bitcoin's entire history is one of extreme volatility. Just because it hasn't dropped significantly during the pandemic doesn't render it safe. If that's your stance, you have to be far more worried about the significant drops of this "safe haven" when there was no pandemic. All the wishing and calling it a safe haven in the world won't change the fact that it isn't. Treat it as one at your own risk.

[suvo05]

Nothing is safe if traded accordingly. Even the gold price can drop from the current price ( possibly will drop). The gold price always increases during the time of war, and currently, it's a war-like situation. It can drop after the pandemic end.
And volatility of BTC price is known to all, you can just buy and relax thinking it's safe you needed to be alert on the market situation.

[LeGaulois]

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You seem to forget gold has always been a safe haven asset and if you look at the charts it was already rising BEFORE the pandemic.
It started in December.
I suppose it's because there seems to have an upward tendency on the part of central banks to expand their gold reserves over the years, but it' s become more obvious only recently.( And the amount seems to be in line with their own GDP)
(I"m not to getting it currently but it's like if they're preparing for a monetary reset (and why not going back to the gold standart))

If it's true the pandemic is a test, it's the case for Bitcoin but not for gold. Remember 2008 and before. It might be appropriate to remember the fact Bitcoin dropped over 30% in the span of 2 months (between February and April). As a purported safe haven, that's not good.
By comparison, gold has made more than 20%...

I understand but people seem to be overexcited because the price hits $12k, they shouldn't. we've seen some pretty epic situations before.

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You're mixing 2 things. The fact Bitcoin starts to be accepted as a payment mean and Bitcoin as a safe haven. Here the discussion is about BTC as a safe haven. If people start to use/accept it as a payment mean it doesn't make it a safe asset

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This is simply due to the fact investors also allocate part of their funds to safer markets (diversity is a golden rule).

[parlantare]

i"m not sure of that, but one thing i am clear about is that cryptocurrency are a very good alternative for the economy and they will always be. Has anyone ever thought of an undertaking or project? if you are one of those who think about starting a entrepreneurship, you are in the right place, why do i say this? Because you can create token on MintMe for free, this will allow you the opportunity to start you entrepreneurship and be able to monetize it through tokens.

[rexxarofmoknathal]

Not sure how you can call a cryptocurrency that has more than 5% volatility safe....

Sure, it's probably safe from being banned by most governments, and we can be pretty sure it's never going to crash to absolute zero, but it's definitely not a safe haven investment in the slightest.

It's still high risk, high reward, and it's a long way from being anything different.

[The Sceptical Chymist]

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.

My question is: would those same analysts have predicted the same price for gold just a few months ago?  Do they think the world is going to be needing a safe haven asset like gold for years to come?  I'm extremely skeptical when it comes to people making predictions about precious metals, as I've read so many websites dedicated to hyping them--and all of the reasons they give for buying gold and silver remain the same regardless of anything going on in the world.

I've been watching the gold and silver market for years now as well.  I can't say I'm shocked that both have increased significantly recently, but I'm not sure gold (or silver) is going to double within a few years.

Bitcoin shouldn't be regarded as "safe" if you're speaking about the probability of losing money by investing in it.  It's never been a safe-haven asset and investors don't flock to it in times of uncertainty.  The only reason why both gold and bitcoin are rocketing upward at the same time is because of all the free money that's being handed out, combined with very low interest rates.  People are spending that money in the stock market, on bitcoin, and on precious metals.  I don't think anything is safe right now, and all of this cheap money is scaring the hell out of me.

[hatshepsut93]

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.

Any investor worth their salt always knew that governments response to an economic crisis would be printing money. Youl'd have to be 12-16 years old to not witness the 2008 crisis and its effects personally.

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.

You are conveniently forgetting how Bitcoin crashed by 50% during the initial global market panic caused by the pandemic. This is enough to disqualify Bitcoin as a safe heaven, even if it performs really well right now. If that event didn't occur, then Bitcoin could have had some claim to that status right now, so let's wait for the next test to see if Bitcoin will be uncorrelated to global markets during a major event or not.

[Vishnu.Reang]

Not sure how you can call a cryptocurrency that has more than 5% volatility safe....

Sure, it's probably safe from being banned by most governments, and we can be pretty sure it's never going to crash to absolute zero, but it's definitely not a safe haven investment in the slightest.

It's still high risk, high reward, and it's a long way from being anything different.

The OP probably meant that Bitcoin is among the few assets that can be considered safe from confiscation by the government authorities. Since Bitcoin doesn't exist in the physical form, it is very difficult for the authorities to seize the holdings from anyone. I would say it is even difficult to establish that a particular address belongs to a certain individual. You can't get the same advantage with assets such as gold or real estate.

[Kong Hey Pakboy]

Not sure how you can call a cryptocurrency that has more than 5% volatility safe....

Sure, it's probably safe from being banned by most governments, and we can be pretty sure it's never going to crash to absolute zero, but it's definitely not a safe haven investment in the slightest.

It's still high risk, high reward, and it's a long way from being anything different.

The OP probably meant that Bitcoin is among the few assets that can be considered safe from confiscation by the government authorities. Since Bitcoin doesn't exist in the physical form, it is very difficult for the authorities to seize the holdings from anyone. I would say it is even difficult to establish that a particular address belongs to a certain individual. You can't get the same advantage with assets such as gold or real estate.

Bitcoin is considered as a safe asset because there is no way for the government to shutdown bitcoin due to it's decentralization, that is why government in other countries have attempt to ban and restrict bitcoin and other cryptocurrencies. Also, bitcoin and blockchain technology have save our assets from collapsing during the pandemic, and now the bitcoin market shows the most stability and growth. Unlike banks and stocks, they have been struggling because of the corona crisis.

[Janation]

And volatility of BTC price is known to all, you can just buy and relax thinking it's safe you needed to be alert on the market situation.

I agree on this.

Bitcoin may increase in time but there are those times that it falls and the price changes quickly most of the times. We can say that it is safe in a period of time or in a certain time but there are those times that can give people or investors losses making it risky.

[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.

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.

Yes, but not all investors want to do that because they concern with their money that can reduce anytime. If they invest in bitcoin, they will already research before buying bitcoin, so they know that the bitcoin price will always fluctuate. That kind of investor is always studying and searching for much information before they decide because they don't want to see they waste their money on something they don't know.

Perhaps, if the investor buys gold, they want to see their money is saved without reducing the value. So they will choose gold than other investment because gold will be the best choice for them.

[Sanitough]

Whoever declares bitcoin is safe for investment might be born in the space just recently.
I'm not a hater of bitcoin, but compared to gold, I think bitcoin is still young and there's much to prove to be considered as a safe investment.

Bitcoin is a good investment, but I don't think it's safe, the FUD, hype, FOMO, and other factors that could make the price move volatile is still here, it will not be stable for a long time as it take time for it to happen, and as long as there's manipulation happening anytime, it can't be safe fellas.

[LogitechMouse]

With Gold, I can say that it is a low to mid risk and low to mid rewards.
Gold has been already an investment and sometimes a hedging too for investors for a long time already and yeah I can agree that it can be a safe haven right now since it has been there for many many years.

Now with regards to Bitcoin.
It has been here for around 11 years only. Bitcoin is very volatile although many are expecting that it will continue to rise in the next years. I might agree with them but at the same time not 100% agreeing because there is still a chance that Bitcoin might go down again. We saw it when pandemic has been declared.
Although Bitcoin will not reach 0 anymore as expected, I can't say that Bitcoin can be considered as a safe haven for now because of its volatility.

[Leviathan.007]

In the moment when I'm writing this reply gold is trading for lower prices after the recent announcement released in Russia by Putin regarding to the vaccine. However, the BTC is still stable and maybe attending to reach the higher prices. That's how BTC win the but run marathon. All the BTC and gold bull run is came up after the economic crisis and shows how the inflection rate increasing over the time.

[abhiseshakana]

Bitcoin is considered as a safe asset because there is no way for the government to shutdown bitcoin due to it's decentralization, that is why government in other countries have attempt to ban and restrict bitcoin and other cryptocurrencies. Also, bitcoin and blockchain technology have save our assets from collapsing during the pandemic, and now the bitcoin market shows the most stability and growth. Unlike banks and stocks, they have been struggling because of the corona crisis.

In some countries, policies that are friendly to cryptocurrency have started to emerge. Such as the Office of the Comptroller of the Currency (OCC) which allows US Federal banks to now offer crypto custodian services. Although government policies do not have a direct effect on prices. But the government-friendly policies on cryptocurrency create additional demand which ultimately affects the cryptocurrency price.
https://www.occ.gov/news-issuances/news-releases/2020/nr-occ-2020-98.html

But keep in mind that if the pandemic conditions continue and the stagnant economy does not move, the opportunities will be thinner, savings will run out faster and the time will come for us to start selling our assets.

[NavI_027]

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.

Actually, I'm expecting the same thing because it's pretty obvious that the pandemic really squeeze every country's assets and slowly decay the economies of all countries but why it seems our currency is not affected at all, it becomes stronger instead. The exchange rate of usd to peso this day is $1 = P48.90 compared to P51.85 last February (before the virus spread arise). Hmm .

Bitcoin has also surged to 11k despite the pandemic, imo gold and btc are somewhat "safe haven" assets,

Nah, I will be convinced if and only if btc remain soaring or at least stabilize after this pandemic. What I'm thinking is that the pandemic served as a huge opportunity to give the rest of investors ample time to trade which resulted in high volume and higher price (IMO only). For me, you're money will never be safe with crypto because its trend today looks nice but tomorrow might be a disaster. No one knows, so extreme caution while investing is still advised .

[carlisle1]

In the moment when I'm writing this reply gold is trading for lower prices after the recent announcement released in Russia by Putin regarding to the vaccine.

After that good run previously,  there's always effects inside the market each time news comes out even it's not a direct threat but traders always take things into considerations.

However, the BTC is still stable and maybe attending to reach the higher prices. That's how BTC win the but run marathon.

On this current run, BTC is moving forward and if your basis is the real time movements then I'll bite on your side.

All the BTC and gold bull run is came up after the economic crisis and shows how the inflection rate increasing over the time.

Both sides received good appreciations while economic crisis hits the global market, investors are diverting their money to much safer side according to their understanding.

[Peanutswar]

I think still the gold is one of the safest havens because we all know that the market price is volatile from just the previous month we all know that the bitcoin rise into the month of January 2020 and falls back into the month of March 2020 this is quite speed right? Because it's volatile we all know that.

Still for me one of the best safe havens is the gold, it takes time on bitcoin to becomes one of the safes havens.

[BitSat19]

I think still the gold is one of the safest havens because we all know that the market price is volatile from just the previous month we all know that the bitcoin rise into the month of January 2020 and falls back into the month of March 2020 this is quite speed right? Because it's volatile we all know that.

Still for me one of the best safe havens is the gold, it takes time on bitcoin to becomes one of the safes havens.

Gold is without any doubt one of most safe investment but now many peoples feel bitcoin is also in some better position because now its spreading and many countries bringing good and soft policies for this just because of this now its price is also doing good even many have problems with bitcoin price volatile but still for me and many others its safe and good invest for long and short both ways.