Gold and Bitcoin prices: the surprising relationship

[bluebit25]

Yep, I don't deny OP's point because I also feel the portfolio between gold and crypto in the financial system.

But in this space we had an opening period that was not openly welcoming, or more accurately, resistant to bitcoin and even now there are factions that are against it.

And basically with investment markets, they have a relationship with social operations, like production - technology - military -.... all have a relationship with each other. With bitcoin, I really see the huge opportunity it represents, but there will also come times where we will see more widespread adoption of it.

[jaberwock]

I only understand one big difference between these two assets and that it is their USD value. The price of Bitcoin has been increasing at a steady rate for the last 15 years  whereas the price of Gold remain stagnant. Investing in Gold is still considered secured because 15 years back the alternative to fiat was always Gold. As for now the options are changing and there will be a time when Bitcoin will be more famous than Gold.

I doubt that with the increase in price of Gold the price of Bitcoin increase. I think it is the opposite when Bitcoin price increases the price of Gold does the same. Bitcoin is so volatile that it's not that easy to predict the price or correlate it with a physical object.

I think no, BTC did not increase steadily and this is why it is known as a highly volatile crypto. Gold on the other hand, is I think have experienced an increase even if not always because as opposed to BTC, it is known as a more stable asset. Not only ' still ' but gold will always be secured. You already said the reason for it. Even if given enough time, I still think that gold will always be more popular than BTC.

Like you, I doubt it too that BTC will follow the price increase of gold because both are different assets. In fact, it can be a sign that BTC value is decreasing because the demand is going for gold instead of BTC. But if BTC price is the one who rise, gold may now decline this time.

[pooya87]

when Gold's price rises, Bitcoin's price tends to rise too, and vice versa.

This has never been true. You are basically interpreting coincidence as correlation.

The fact is the world economy is in a terrible shape with inflation and recession. The inflation part is creating an incentive for people to invest their money that is losing value. Their choices are obviously bitcoin, gold and a lot of other things. So price of both goes up not because there is a correlation but because they both are used for diversification.

The recession part is creating incentive for people to liquidate their assets to be able to cover the cost of living. Again if both gold and bitcoin drop at the same time, it doesn't mean there is a relationship between the two.

If anything, you can say there is a relationship between bitcoin and the economy.

[Freddie Boyer]

Bitcoin and Gold are both considered as future assets that are good enough to be owned and invested in by anyone who likes them even though they still have several differences in certain aspects at this time. However, in general, there are still many people who consider Gold to be the best asset and this also applies to Bitcoin because the current Bitcoin investment volume is enough to prove that Bitcoin is also a very good asset. So sometimes some people don't really care about such a big correlation because when both assets experience an increase, of course those who hold both will feel happy.

In fact, if we can and are able to have both. usually like that..he.he  Yes. BTC is digital gold and Gold is traditional people's BTC.

I personally don't mind it because if the price of gold goes down I buy and if BTC goes up I sell to buy gold and that's what I will continue to do. Gold prices rise, BTC generally falls, and if BTC prices rise, gold prices fall.

[Iranus]

I only understand one big difference between these two assets and that it is their USD value. The price of Bitcoin has been increasing at a steady rate for the last 15 years  whereas the price of Gold remain stagnant. Investing in Gold is still considered secured because 15 years back the alternative to fiat was always Gold. As for now the options are changing and there will be a time when Bitcoin will be more famous than Gold.

I doubt that with the increase in price of Gold the price of Bitcoin increase. I think it is the opposite when Bitcoin price increases the price of Gold does the same. Bitcoin is so volatile that it's not that easy to predict the price or correlate it with a physical object.

If you compare the market capitalization of bitcoin and gold, bitcoin has a market capitalization of less than $2 trillion while gold has a market capitalization of more than $15 trillion. From there you will know why the price of bitcoin has increased faster than gold in recent years but it is still considered a riskier asset. And I believe that when bitcoin's capitalization is equal to gold, the price of bitcoin will gradually stabilize like gold but I don't think that will happen soon.

Although both are financial markets and sometimes they will have similar moves as they are both measured in USD, and in case the USD falls then both will increase and vice versa. But that doesn't mean the two are related because their value lies in supply and demand, and the supply and demand of these two assets have never been the same.

[AnonBitCoiner]

In fact, if we can and are able to have both. usually like that..he.he  Yes. BTC is digital gold and Gold is traditional people's BTC.

I personally don't mind it because if the price of gold goes down I buy and if BTC goes up I sell to buy gold and that's what I will continue to do. Gold prices rise, BTC generally falls, and if BTC prices rise, gold prices fall.

Sometimes people often choose both of them because gold and Bitcoin cannot be ignored for their profit so I think we should not avoid any of these as if the price of one increases then there will sure be hype in another one and we can easily take our profit.

Bitcoin is considered valuable for those who have firm faith in digital investment and is more secure than gold as nobody will have any information about bitcoin but gold is a physical investment which is seen by naked eyes so there is a chance of stealing with gold otherwise the benefit of both are higher.

[leonair]

Gold and Bitcoin do have very different forms, Gold has a physical form, while Bitcoin is a digital currency that does not have a physical form. In fact, we can also see that the total supply available for the two is also different, Bitcoin has a very limited total supply, while Gold has an unlimited supply. Bitcoin should be more expensive than Gold because it has fewer entities and is harder to get.

Although there are many differences between Bitcoin and Gold, Gold is more popular. But gradually the popularity of Bitcoin has started to increase. I think these two are very valuable assets. Earlier people used to invest in Gold, but now in the digital era, the demand for Bitcoin has increased so that everyone now  Gold also invests in Bitcoin. I favor Bitcoin more of the two because I know the price of Bitcoin will go up a lot more in a few years.

[Arenga pinnata]

The two do have a correlation that looks related. Because both of them tend to have the same movements at a certain time within a certain period of time. But actually there is a big difference between the two. Like gold, it remains strong because there is minimal risk and has received full trust from the past and to this day. But Bitcoin does have high risks but its adoption rate is increasing rapidly and remember Bitcoin has a supply limit. Different from unlimited gold. And because we are in the digital era, I still think Bitcoin is what I prefer. Because a more advanced era in the future will encourage everything to become completely digital or digitized. And this will make Bitcoin much needed and will get more attention and adoption from the next generation. It's just that gold will still be a necessity. But in the world of digital investment Bitcoin will get more attention.