In times of war, Gold rises. What about Bitcoin?

[davis196]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

The US dollar value also goes up in times of war and Bitcoin is mostly valued in US dollars. Don't ask me why the US dollar value goes up.
We live in a crazy world and nothing makes sense anymore.  The laws of finance and economics are about to be thrown at the garbage.
Bitcoin is too volatile to be seen as a "safe heaven" asset like gold. I don't think that the Isreal-Hamas conflict will have such a big impact over the prices of all commodities and financial assets. There was a short term impact in the oil price, but it's over.
There will be an impact, if the conflict escalates and Iran blocks the Persian gulf, but I don't think that Iran really wants such escalation.

[1714651858]

1714651858

[1714651858]

1714651858

[Abiky]

Yeah BTC will be rising soon. Well past 30k this month and around 40k by Jan 1.

Much more likely to do that than another method.

My reasoning is the difficulty has risen again this time by 6.47% which is more than 500 million in gear

added on.  Gold is stable for now but you don't know about its future availability.

I.e. are asteroid filled with gold real and mineable:


https://theprint.in/opinion/giant-asteroid-has-gold-worth-700-quintillion-but-it-wont-make-us-richer/260482/

if this is true gold will drop well under 500 usd an oz.

and if it is true silver looks more solid.

I doubt Gold will lose value quickly, especially when it's been trusted by investors for centuries. I know the discovery of an asteroid with Gold in it increases the supply. But that doesn't mean its value will go down overnight. The only way this could happen is if BTC becomes the world's preferred store of value. It could take decades before we're able to witness such a change.

I'm fine with BTC just the way it is, as long as it doesn't sacrifice decentralization in the long run. Knowing that the supply of BTC is limited, there's a high chance the cryptocurrency will reach a new ATH in the future. With or without market momentum, don't expect Bitcoin to go anywhere soon. Just my two sats.

[DeathAngel]

We’ll have to wait & see, I don’t believe we are truly seeing the effects of both wars on the rest of the world currently. Heating gas & oil prices are up a fair bit since before the Ukraine war but I don’t think much else has affected the rest of us yet, maybe grain import prices too. Hopefully things don’t escalate too much because the last thing we all need is a full blown WW3. As for bitcoin it will do fine, we are coming towards a time where historically it performs very well for a couple of years.

[Smack That Ace]

Yeah BTC will be rising soon. Well past 30k this month and around 40k by Jan 1.

Much more likely to do that than another method.

My reasoning is the difficulty has risen again this time by 6.47% which is more than 500 million in gear

added on.  Gold is stable for now but you don't know about its future availability.

I.e. are asteroid filled with gold real and mineable:


https://theprint.in/opinion/giant-asteroid-has-gold-worth-700-quintillion-but-it-wont-make-us-richer/260482/

if this is true gold will drop well under 500 usd an oz.

and if it is true silver looks more solid.

I doubt Gold will lose value quickly, especially when it's been trusted by investors for centuries. I know the discovery of an asteroid with Gold in it increases the supply. But that doesn't mean its value will go down overnight. The only way this could happen is if BTC becomes the world's preferred store of value. It could take decades before we're able to witness such a change.

I'm fine with BTC just the way it is, as long as it doesn't sacrifice decentralization in the long run. Knowing that the supply of BTC is limited, there's a high chance the cryptocurrency will reach a new ATH in the future. With or without market momentum, don't expect Bitcoin to go anywhere soon. Just my two sats.

If we think that other large quantities of gold can be found on Earth or on other planets and cause the value of gold to decrease. We should also not rule out the possibility that bitcoin will be decrypted in the future, there may be some algorithm or technology that breaks the blockchain...something like that. Our world is developing extremely fast and anything can happen. Bitcoin has been unbreakable for the past 14 years but there is no guarantee it won't be broken in the future, similar to gold.

[DrBeer]

I think large institutional investors still see Bitcoin as a store of value, with too much short term volatility. They do not want to lock in their investors money and then wait a few years for the Bitcoin price to recover or to reach a new "all-time-high"  

They want something like Gold that are giving them long-term steady growth in the price. On the other hand, some smaller individual investors might want to exit from the "government" controlled ...centralized financial system, during a war.... because those institutions become an ideal target for the enemy. (It is safer to store your wealth on a decentralized Blockchain that are not controlled by any governments)

The people fleeing their country, might also temporarily use "Bitcoin" to store their wealth.... because they know if it is stored in a Bank or on themselves, then it might get confiscated or blocked by their own government. (Bank runs)  So it is better to cross the border, with your wealth stored on the Blockchain.  

Bitcoin is convenient and has more convenient characteristics for speculative investors and manipulators. Therefore, it too has its audience. Bitcoin cannot be "discounted", nor can it be considered a very stable means of saving or accumulation. At least it is not for the mass consumer/investor, especially not ready to play for a long time.

[jasonjm]

Bitcoin and Gold are different classes of assets. Bitcoin might not fluctuate in times of war. Bitcoin will pump in the coming months, and the price will go past $30k. On the other hand, Gold is stable at the moment with slight fluctuations in the price. 
Bitcoin still has a long way to go to replace Gold and gain the trust of investors in crunch situations. In future, we will see Bitcoin adoption reach its peak, and Bitcoin will be used as a store of value along with gold.

[Abiky]

Bitcoin and Gold are different classes of assets. Bitcoin might not fluctuate in times of war. Bitcoin will pump in the coming months, and the price will go past $30k. On the other hand, Gold is stable at the moment with slight fluctuations in the price. 
Bitcoin still has a long way to go to replace Gold and gain the trust of investors in crunch situations. In future, we will see Bitcoin adoption reach its peak, and Bitcoin will be used as a store of value along with gold.

I guess Bitcoin is still new to the world. Investors trust Gold because it has been around for centuries. I think we should give Bitcoin more time to see what happens. I'm certain the world will adopt BTC as the new store of value because of the benefits it provides. Volatility aside, Bitcoin is better than Gold because it's portable, decentralized, and highly-divisible. It should only be a matter of time before people recognize this.

I'm in no hurry to see Bitcoin going all the way to "Mars" as long as it does the job it's supposed to (bringing banking to the unbanked). If it doesn't sacrifice decentralization in the long run, it could last a lifetime. Maybe Bitcoin and Gold will co-exist for generations?

[boltz]

"Silver wins battles , Gold wins wars " and Bitcoin wins in both of them so the current rise of Bitcoin is no coincidence and in my opinion we slowly transit towards bull run. Will it get a big spike in price until the last year ? I doubt that , however , I won't be surprised to see price above 33k by the end of the year. 

[kingvirtus09]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

You're comparing Bitcoin to gold, but why? You are aware of their distinctions from one another. We are also aware of Bitcoin's advantage over gold. Therefore, I don't think it means that more people are investing in gold and that no one wants to buy Bitcoin; it's not like that.

Is Bitcoin not trusted at all? For more than ten years, Bitcoin has been operating in that manner. The fact that the investors no longer want Bitcoin indicates that they did not invest in gold. That's also not the case. They are investors because there are still people who want to invest in things like gold, bitcoin, and other cryptocurrencies, right? You're aware that it must be.

[ndutndut]

If a war occurs then gold and bitcoin will be a good store of value for us and the price of bitcoin will not be affected by the war that occurs. We can see with the two wars that have occurred recently, Ukraine vs Russia and Israel vs Hamas, but the price of Bitcoin has not fallen, instead it is now rising. Even if a third world war occurs, cryptocurrency technology will eventually survive and replace gold and cash after the war, blockchain technology is superior.

Additionally, in case of war, carrying gold is very heavy during war and carrying a ledger (digital wallet) can be put in your pocket and protected. I don't see how difficult it is to choose. The internet and electricity can always be reopened once everything is settled and the store of value will always remain on the blockchain until transferred.

[Cookdata]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

I'm not sure why this didn't happen unlike in 2020 when US and Iran had a clash when the US drone kill one of the Iranian most wanted soldier in their list and then all of sudden, we experienced rise in gold and some US stock but collapse when the two parties came to peace. However, I noticed that during the recent wars especially Rus-Ukr and Isreal and Hamas, there are speculations of some organizations usually sponsoring war and taking sides using bitcoin and when United nations or US find out, the address are flagged and if deposited into bitcoin, they are sieze, maybe that's few of the reason bitcoin don't pump because chain analysis thinks bitcoin some people used bitcoin for wars.

I don't understand why Gold price should rice now with Hamas and Isreal, not like they are gold rich countries, it was reported some days that Isreal currency has crash to new low against dollar, I think something isn't adding up with the pumps we have seen in gold or could also be a coincidence, there is another market force that led to the increase.

As of now the price of BTC is $27,750 which is a 1000-dollar hike compared to the last 48 hours if I am not wrong. Comparing gold the price is around 0.5% drop per ounce as per the US market rate so I don't think it affected the gold price in any positive way, to be honest.

1% change in traditional market is something they celebrate because the volatility is low over there. That's how they celebrate. However, many traders in there do margins with borrow funds, a 10x with 1% will print some profits or some loss.

[doomloop]

Gold is as old as man and has gained more publicity and recognition than Bitcoin. Bitcoin is just a new invention and many people have not heard or understood how it works. An average man on the street knows the worth of gold and sees it as a safe haven in doomsday-like scenarios. But many people are not technologically inclined so they prefer to stay clear from such presumed complicated investments.  

Or you can instead say that gold is older than in Bitcoin. But, BTC isn't a new invention because it existed I think for 14 years already. Many people already know and use it but maybe many of them are still not involved with it for different reasons. If those average people on the street also know Bitcoin, I'm sure they will now prefer it more than gold, for the fact that BTC is digital.

Even though they panic and their house got destroyed, they still can access their BTC later on but this may not always be the case with the gold because they are too bulky. Gold can rise and so as Bitcoin. In fact, BTC despite being newer than it, it value already surpassed it. And there are still more to come with it later on.

[vv181]

Gold hardly significantly rises in times of war. The surge did not beat energy, oil, and cybersecurity stocks, so it is way more lucrative than gold. Also, war/weapon-related manufacturing certainly rises. So if the conflict does not happen globally those things are certainly correlated to the prices and affect significantly.

And there is hardly a correlation with bitcoin as a value, especially when we talking about war. It is not people did not trust bitcoin, it is not gold is better. But rather simply there is not any direct correlation.

[puloweh555]

Or you can instead say that gold is older than in Bitcoin. But, BTC isn't a new invention because it existed I think for 14 years already. Many people already know and use it but maybe many of them are still not involved with it for different reasons. If those average people on the street also know Bitcoin, I'm sure they will now prefer it more than gold, for the fact that BTC is digital.

Basically, when there is a war, bitcoin gold will be the best store of value for the future. Because these two assets will not be affected when the war occurs, and these two assets will continue to increase in price. It's true that gold is older than bitcoin, but bitcoin is the future of technology. We cannot withstand technological developments that continue to develop rapidly.

Even though they panic and their house got destroyed, they still can access their BTC later on but this may not always be the case with the gold because they are too bulky. Gold can rise and so as Bitcoin. In fact, BTC despite being newer than it, it value already surpassed it. And there are still more to come with it later on.

In a war situation, especially if you are in a war-torn country, Bitcoin is the main choice rather than gold. Because gold storage is too heavy to carry everywhere and bitcoin storage only requires carrying a wallet seed phrase. Storing bitcoin is easier and safer than gold.

[panganib999]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

Yup. Regular investors don't have the reason to, and so they don't trust bitcoin just yet. Gold on the other hand is so trustworthy some people would rather get paid in gold than in fiat even. As for everything else, I don't think the war had much effect on the value of Gold, although historically speaking if this carries on for longer we might see some noticeable effects (I wouldn't stick around to find out tho lol). Bitcoin's a little precarious right now as it just suffered from one of the most devastating price losses last year, and is pretty much just gaining momentum once again to proceed with the upcoming bull run. So it all makes sense for bitcoin to remain stagnant for now (it's not connected to the world economy after all), and for gold to get some gaining although barely noticeable.

[Fortify]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

Gold has a very long track record of being a "flight to safety" type asset when people want to get out of the stock market if they fear a crash. Wars can start a crash and we are in a bit of a volatile moment at the moment, but it can quickly reverse course to be averted - we know that Israel and Palestine are at "war" but it seems very localized right now. If oil prices do go haywire due to conflict in the middle east, it's possible you'll see a small bump in alternative assets, but Bitcoin has at times tracked the stock market, so it too could be a victim of people wanting to cash out and store money in more accessible - offline - places. The longer crypto sticks around the more historical data points we'll have to go on in future.

[Franctoshi]

Yes,  Not only has Gold risen or benefited in times of war but we have also seen Bitcoin rise as a result of war due to fear of uncertainty, Though Bitcoin has only spent a decade plus, and we haven't had a major war event like that of the Russian invasion of Ukraine where we see Bitcoin play a major role in term of acting as an avenue for Donation of funds to the affected country, and Countries like Russia using it to escape sanctions and thereby making people see more need to bank on Bitcoin and which increases demand.

[Obari]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

I had to qoute your entire op because I basically don't know how best to say this, but I think people already believe so much in gold either digital gold or physical gold and this is because gold had already proven itself long before now unlike Bitcoin or cryptocurrency which is still new in the market and highly volatile but I had to go check gold out and it seems the rise wasn't really significant and bitcoin  has a lot of factors that determine its rise and fall and bitcoin  can either rise or fall with or without war.

[STT]

Wars are expensive and since many countries keep a gold reserve for foreign exchange and are likely to spend it during a protracted war we could say the opposite that the war will lead to the selling of gold to fund the war.   Gold in supply greater then usual should lead to a lower price most likely though its also arguable that gold being used so heavily as cash at that time reinforces its usage and validity long term.  It will be ironic but the lead up to war could be when gold value rises.
  China had no gold in its national reserves at this century start and has been buying ever since to gain this advantage, will they then be ready to wage war when they feel enough gold is held ready to spend.  Again I think BTC will do best when used not stored.

[TimeTeller]

I've seen Gold market prices rising lately as a result of the current Israel-Hamas conflict. However, Bitcoin hasn't experienced any upsurge in price. It's still hovering around the $26k range. Something similar happened during the Russia-Ukraine war.

Is it because investors still don't trust Bitcoin as a store of value? Or is it something else? Please enlighten me. Your input would be greatly appreciated. Thanks.

I had to qoute your entire op because I basically don't know how best to say this, but I think people already believe so much in gold either digital gold or physical gold and this is because gold had already proven itself long before now unlike Bitcoin or cryptocurrency which is still new in the market and highly volatile but I had to go check gold out and it seems the rise wasn't really significant and bitcoin  has a lot of factors that determine its rise and fall and bitcoin  can either rise or fall with or without war.

Gold is an asset which has been with the humankind since time immemorial, and its value is of no question.
Thus, we can't discard the fact that it is still one of the reliable assets that people want to hold given circumstances.
Bitcoin, is different as it is a digital asset and a very volatile one up until now.
If you are not a risk taker, you won't involved yourself in this market, you will prefer the tangible ones like gold.