"Looks as if #Bitcoin is eating #Gold". Good idea to buy some Gold now?

[bitmover]

I saw this interesting tweet today.


source: https://twitter.com/Schuldensuehner/status/1361944837742874631

As we can see, GOLD price is dropping the last 6 months (-10%), while Bitcoin is doing really well (-317%).
Some of the gold market cap might be moving to BTC.



Would it be an interesting idea to take some profits from BTC recent gains and buy some gold? Gold is the oldest asset I know of, and it will certainly hold value over the next years to come.

I am still accumulating BTC, but to accumulate some Gold is always a good idea.

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[jackg]

Tbh I prefer platinum but gold has a value in history (and then less of a value if you drop murcury on it 😁).

I was thinking of making a thread recently as in the last cycle, a friend sent me a message of bitcoin surpassing an ounce of gold and were now almost at a kilogram.

Gold saw quite a dramatic bull run though. When I first looked at buying some I think 100g in 2015 was a lot lower.
It mightve been pushed up because of negative interest rates too (or no interest) and people needing a hedge.

[aoluain]

I have been talking just at the weekend to a BTC friend about
taking profits and maybe buy Gold and Property but we were aiming
for later in the year when [hopefully/potentially] that Gold/Bitcoin
gap will be even wider.

If you listen to Michael Saylor, Bitcoin is really the only store of value,
its really hard to know what to do, is there going to be a correction like
2017/2018? will we actually need to diversify into Metals or Property?

[dkbit98]

Would it be an interesting idea to take some profits from BTC recent gains and buy some gold? Gold is the oldest asset I know of, and it will certainly hold value over the next years to come.

I am still accumulating BTC, but to accumulate some Gold is always a good idea.

I am following Gold in comparison with Bitcoin for few years and currently we can get 29.1 XAU for 1 Bitoin, but I am sure that Gold price is heavily manipulated and underrated compared with fiat currencies.
Peter Schiff would love to see you buy some of is beloved gold and he would try to tell you how bad bitcoin is

Having some gold is not a bad idea at all but keep in mind that holding it may not always be free and you need to pay some fee, and I see that Michael Saylor is saying that gold peaked in 2020 and that Bitcoin is superior asset now.
Gold market cap is still huge with over $11.25 Trillions but we are slowly going there with Bitcoin and I am expecting big changes in next few years.

[ChiBitCTy]

Like I tell my clients everyday all day long, diversification is key and what it's all about.  Lets keep in mind that gold is still towards it's all time high and that it really isn't an asset that is meant for growth.  I think anyone with a sound portfolio that has the means to be able to afford some silver and gold certainly should ( physical, do not buy Mutual Funds/ETFs etc).. but bitcoin is a growth story like no other, so if you do buy gold with it, don't expect a ton of upside.

[Xavofat]

I don't think there's a strong connection.  The historical value of gold derives from its physical properties including:

1.  The fact that it is the least reactive metal.  It can be kept in storage for thousands of years and never rust.
2.  The fact that it is appropriately scarce.  Storing the right amount of value in other metals (excluding silver, which is also traded as a store of value), is difficult.
3.  The fact that it is shiny and beautiful, it's a show of wealth like in jewellery.

Those intrinsic aspects of gold will remain and so its value will never be very low.  Unlike gold, Bitcoin is easily replicable in the form of altcoins, but these generally do not get much traction unless they are hugely different to Bitcoin, so it has value in its scarcity and security.

[Hydrogen]

A big part of the reason gold is considered one of the best recession performing assets, is due to it having many real world applications in industry.

Gold is commonly utilized in electronics components, aerospace and for various industrial processes similar to rare earth minerals and other scarce assets.

One example of this is the degree to which gold can be scavenged from scrap metal and components people commonly dispose of in their trash:

https://www.youtube.com/watch?v=5MYomuvrry4

Gold Recycle from scrap components electronics. connectors Electronic circuit Boards computer parts.

I think the above describes areas where gold is strong.

Gold needs a reboot and makeover for it to reach its profit potential post 2000. It needs to become more convenient and accessible. In a way that appeals more to younger generations. A high percentage of gold and precious metals investors are boomers who are middle aged and older. Gold and precious metals don't have age demographic support among millennials or younger generations, the way cryptocurrencies do. Perhaps one of many significant obstacles gold must overcome if its to improve its standing.

[Darker45]

Personally, I would. It doesn't hurt to trim down a bit on Bitcoin's profit and diversify it to precious metals. While there are speculations of space mining and all, I guess it won't happen anytime soon. And gold would definitely stay precious for the next several decades. For me, it is still a wise decision to buy gold, silver, platinum, and so on during their respective dips. In fact, precious stones could also be added to your portfolio if you have a vast amount of wealth. Having several baskets is always better than having only one.

[South Park]

I have been talking just at the weekend to a BTC friend about
taking profits and maybe buy Gold and Property but we were aiming
for later in the year when [hopefully/potentially] that Gold/Bitcoin
gap will be even wider.

If you listen to Michael Saylor, Bitcoin is really the only store of value,
its really hard to know what to do, is there going to be a correction like
2017/2018? will we actually need to diversify into Metals or Property?

Except for those that have been holding bitcoin for a very long time I think the most common plan for those that are holding bitcoin is to hold their coins for long enough to exchange their bitcoins so they can buy real estate, but it is too soon for that, for the average person their home is probably where they have their biggest investment but so far that market has not gone down enough, you need to wait until things get so bad that a lot of people begin to sell their homes and the price of bitcoin is skyrocketing, that would be the perfect time to get as much real estate for your bitcoin as you can, I do not know when that will happen but that it is an a scenario that I'm waiting for.

[crwth]

Surely enough, it would be great to diversify your assets as long as you can do so. If you were ever available to buy from your BTC Gains, you should. Remember that if it receives a lower high, you can never go wrong to average your entry point as well there. If you are going to profit from it, it's a great time now to buy. 

I think we can be safe to assume that Gold is a safe asset and not fiat. Your money should be an asset instead of a fiat. Inflation hurts for sure.

Additionally, I like how Hydrogen included the recycling of Gold because everywhere you can see the practical applications in it with our technology. When the technology improves and moves to a more sustainable area, the research aims to lower manufacturing costs. Gold would be less used to the application and probably put into Gold reserves, hence a great asset.

[amishmanish]

This makes me wonder if possible Gold devaluation is one of the reasons that the Indian Govt is getting so proactive about small retail investors making money through crypto in India?!!

You see Gold is seen as a big motivator for savings as well as spending in India. A huge percentage of the population is young and digitally active. If the concept of bitcoin as digital gold catches up, Gold may lose its dominant role and cost for the population. Cryptocurrecies and the accompanying innovations also make people way more spartan with respect to their savings and investments. Majority of Indians prefer staying in safe Govt issued instruments and put money in Govt owned banks. All of that could possibly change with Bitcoin.

Instead of letting innovation and good business drive growth in the sector, the reactionary and conservative policymakers are resorting to moves like banning all cryptos.

[jrrsparkles]

Investing on Gold is always a good idea and why not you too invest on it? It is mandatory to hold few hundred grams of Gold in or savings all the time for emergency needs when nothing is liquidated as Gold. I guess some of the rich people are moving to BTC from Gold that is why the price is dropping but still gold remains in the top of total marketcap and it deserves it.

[buwaytress]

Well, the last time Bitcoin "ate" gold in 2019, using the very same dataset from the chart shared, gold then proceeded to trump Bitcoin for the majority of that time since -- until today. That's a good year and a half of gains, so sounds perfectly legitimate rationale for a trader who believes in at least one cyclical repeat.

But if we believe Bitcoin's entering a new era now, it's hard to see another repeat performance. Which means the narrative hasn't changed for Bitcoin or gold people -- so I don't see a lot of Bitcoin people switching over. Institutionals might view it as a hedging opportunity though.

[oHnK]

If you look at the development of the number of people investing in Bitcoin at this time, I think it's only natural that BTC eats gold. Major companies openly display their recent investments in BTC. While gold does not develop just as usual and considers itself the safest asset because it is recognized by everyone. However, gold has low price volatility so it will be very possible for BTC to surpass it even though I think it is still very early to declare BTC safer than gold.

[Mauser]

A little bit of Gold can never be wrong in your portfolio. Diversification is the best way to protect our portfolios from dropping too hard in a downturn. I am holding a small part of my portfolio in a commodity fund that mainly buys Silver and Gold. When the big bang is going to happen I hope they will go up in value. However the upside is fairly limited in Gold in my opinion. If Gold would go up 20% this would be huge, but seeing Gold go up 100% or 200% like bitcoins seems very unrealistic. I would prefer crypto currencies just because the upside potential is so much bigger.

[avikz]

Would it be an interesting idea to take some profits from BTC recent gains and buy some gold? Gold is the oldest asset I know of, and it will certainly hold value over the next years to come.

I am still accumulating BTC, but to accumulate some Gold is always a good idea.

Investing in gold is always a good idea from the perspective of capital protection. People who usually wants to avoid risk but have a inflation proof portfolio, always invests in Gold. I personally have not seen any downfall in investing in gold at all and it is a must have in anyone's portfolio. If you are accumulating bitcoin, no harm in it. But you need to understand that bitcoin's price is super volatile. Today's ATH can't guarantee that bitcoin will hold onto this price level tomorrow. So for common investors, bitcoin is a very risky proposition. While gold is relatively stable and it's acceptance is really high around the world.

Nowadays, investing in gold has become very easy with the introduction of paper gold. You invest according to your capacity and you sell from the comfort of your home. Around 10% of my monthly investment goes into such paper gold and I have the choice of either holding that paper gold or get delivery of the physical gold whenever needed!

[DoublerHunter]

A little bit of Gold can never be wrong in your portfolio. Diversification is the best way to protect our portfolios from dropping too hard in a downturn. I am holding a small part of my portfolio in a commodity fund that mainly buys Silver and Gold. When the big bang is going to happen I hope they will go up in value. However the upside is fairly limited in Gold in my opinion. If Gold would go up 20% this would be huge, but seeing Gold go up 100% or 200% like bitcoins seems very unrealistic. I would prefer crypto currencies just because the upside potential is so much bigger.

^ Investing in gold and investing in BTC is might a good idea as well, everything is good for me if you are talking about investing is sounds good either that is crypto or gold. If you can invest in both of them, why not? They had the same movement but I think BTC is easy to gain profit than gold because BTC is become very expensive, even if you will buy. Nevertheless, all of these are temporary, because we know that someday, gold was hold in a passion.

[el kaka22]

This makes me wonder if possible Gold devaluation is one of the reasons that the Indian Govt is getting so proactive about small retail investors making money through crypto in India?!!

You see Gold is seen as a big motivator for savings as well as spending in India. A huge percentage of the population is young and digitally active. If the concept of bitcoin as digital gold catches up, Gold may lose its dominant role and cost for the population. Cryptocurrecies and the accompanying innovations also make people way more spartan with respect to their savings and investments. Majority of Indians prefer staying in safe Govt issued instruments and put money in Govt owned banks. All of that could possibly change with Bitcoin.

Instead of letting innovation and good business drive growth in the sector, the reactionary and conservative policymakers are resorting to moves like banning all cryptos.

Gold is not really dropping in just one nation, it is dropping in all nations right now, and the fact is that bitcoin is doing a lot better than anything else scares governments because people may not need them. Think about a nation that has citizens that doesn't use that nations currency, main thing they use is crypto, and they do pay their taxes they do nothing illegal, but they just refuse to use that nations fiat, in the nation itself, wouldn't that make nations currency worthless?

I mean what is the point of a fiat currency if nobody uses it? Of course it could never be as severe as nobody uses it, but the reality is that we are in a situation where more and more people uses crypto and that means less and less people use fiat which makes fiat a lot less valuable. That is the main reason governments are against it, or at least the ones that are against it.

[Lorence.xD]

Tbh I prefer platinum but gold has a value in history (and then less of a value if you drop murcury on it 😁).

Gold saw quite a dramatic bull run though. When I first looked at buying some I think 100g in 2015 was a lot lower.
It mightve been pushed up because of negative interest rates too (or no interest) and people needing a hedge.

Hard to find a market for platinum and street value isn't really known in my country but gold and silver are some of the big ones in my country. I think that this is an opportunity to buy gold now that its bull run is over the prices is slumping back, the prices will definitely go up someday and I think that anyone who passes the opportunity to buy one now is a fool.

[ivankoh]

I saw this interesting tweet today.


source: https://twitter.com/Schuldensuehner/status/1361944837742874631




I am still accumulating BTC, but to accumulate some Gold is always a good idea.

That is one of your options. Looks like comparison is misleading.
because in my opinion, in economics, bitcoin is defined as an asset that represents tangible core intelligence. Gold is a traditional existing asset. The emotional order and the frequency of dependence are different.
You buy gold and send it at the bank? I don't think so if you have a better space to keep it as safe as bitcoin - And you can customize it to be used as you like.