Rising gold value - will it reduce Bitcoin's attractiveness ?

[tygeade]

I will stick with Bitcoin because it's easier to trade it and I have the possibility to be my own bank. I can withdraw my coins to my hardware wallet and I will not have to worry about 3rd parties but if I buy Gold virtually, then I won't feel safe. I'll feel safe if I buy real gold but as far as I know, rates are bad when you buy small quantities from typical sellers.

Gold has been traditionally used as a currency and store of value for centuries. It's no-brainer that there will be more money flow in Gold than in Bitcoin but it won't reduce Bitcoin's attractiveness. Bitcoin is a brand new currency with still lots of potential, gold is only a stable one. What makes currency attractive? ROI, so in terms of attractiveness, Bitcoin outshines Gold.

I do agree that bitcoin is far better and I use it too, I do not feel the need to change it and I will keep on using it as much as I possibly could. I am not saying that it is going to be easy or anything, I am just saying that we are going to probably see it change, and it will not be the same. This is why I feel like we are going to end up with a bad result if we are not careful, it's the most important part and will definitely result with something that will not be all that easy to fix.

We should avoid this as much as we can, and do something decent, it's just clear that we are going to have some trouble. We know it is not easy, but let it be for the time being and if people do not trust bitcoin as much as we trust it, then it's their own problem. I trust it, and I find it better than any other asset, in fact I find it better than any other currency as well, and I am happy with that, it's just the way it should be going without any issues at all for me.

[franky1]

first of all fuel costs have decreased in the last few years so the VALUE (wholesale) of gold has got cheaper..
however the PRICE has gone up to a new ATH
this is bad for investors

bitcoin however has seen both the value(underlying cost(mining) go up and so the price is now closer to value,

bitcoin has more potential to go up than gold does

[alastantiger]

It is not necessary to say that the increase in the price of gold will reduce the attractiveness of Bitcoin, because Bitcoin already has its own attractiveness, even when the price of gold increases, it will only attract people who want to invest in stable assets, and for people who believe in the potential of Bitcoin will still choose to invest in Bitcoin.

Agreed because each assets has their targeted investors. Bitcoin is more attractive to new investors that were born during the time when digital currency is becoming more popular while gold is for more older investors that many of them do not understand Bitcoin. Asking someone like bill gate between the two which one is he going to buy and he'll say gold but asking someone that's a youth to choose and they'll prefer Bitcoin.

Gold could be doing well now but it can't outperform Bitcoin hence choosing gold over Bitcoin is a wrong decision. Gold is a safe haven but not a better investment when what you have in mind is to make profits from your investments.

[Mame89]

It is not necessary to say that the increase in the price of gold will reduce the attractiveness of Bitcoin, because Bitcoin already has its own attractiveness, even when the price of gold increases, it will only attract people who want to invest in stable assets, and for people who believe in the potential of Bitcoin will still choose to invest in Bitcoin. And also the price of gold will not always increase, because at one time either due to political turmoil or other reasons, it will affect its price, and maybe its value will also decrease, so in the long term the potential price of Bitcoin can really outperform gold and that is what makes more people still choose it.

Yes, that's right. The increase in gold prices will not affect people's interest in bitcoin. Because gold cannot be equated with bitcoin, gold is a hedge asset that has been around for centuries. Now if we review the main purpose of creating bitcoin, it is none other than to facilitate transactions, and now it is also a hedge asset. So I think the increase in gold prices will not affect people's interest in bitcoin because bitcoin is an asset that has potential in the future.

Moreover, if a global crisis occurs, buying gold is not efficient, transferring assets from fiat to physical gold requires a long process (must first buy from a gold shop or request printing from digital gold to physical gold which is not instant). not to mention the risk of being robbed or lost which is very vulnerable because during a crisis these things have the potential to happen. If BTC is very liquid (transferring from fiat to BTC or vice versa can be done easily) our assets will be safe from the destruction of fiat currencies when a crisis occurs. So I think the appeal of bitcoin will not decrease even though gold is currently increasing.

[STT]

The spread on gold should be far worse then Bitcoin, if thats not the case you cant exactly blame gold its just that Bitcoin needs to do better.   Its a competitive market, the reason for your loss may not be your opponent beating you but your own failings towards the customers.
    They are two different products, we could compare Bitcoin to anything but obviously people use dollars and their own national currency savings in contrast to Bitcoin.  If people feel the BTC price is going lower often they will just save plain FIAT, thats the short term view but people are simple if their views of a product benefiting them personally or not.  

Ultimately BTC has outperformed gold, FIAT or many other considerations but its also true at times people avoid holding any Bitcoin from fear of its volatile price and possible losses.    I believe the most important fact for BTC will be usability not this idea of holding gold or holding BTC, people spend most of their money and this is the market share BTC should be aiming to capture really not so much the capital holdings.

[legendbtc]

Moreover, if a global crisis occurs, buying gold is not efficient, transferring assets from fiat to physical gold requires a long process (must first buy from a gold shop or request printing from digital gold to physical gold which is not instant). not to mention the risk of being robbed or lost which is very vulnerable because during a crisis these things have the potential to happen. If BTC is very liquid (transferring from fiat to BTC or vice versa can be done easily) our assets will be safe from the destruction of fiat currencies when a crisis occurs. So I think the appeal of bitcoin will not decrease even though gold is currently increasing.

Gold is still the most sought after asset in the 2022 crisis or even in the war between Ukraine and Russia, most governments and institutions tried to buy more gold at that time, not bitcoin. Or with fears of an impending recession, many large investment funds and investors are buying gold in large quantities because they know that it is the best safe haven in the world, not bitcoin. That is also why gold prices are still rising despite the stock market and crypto markets falling in recent days. So, it would be incorrect to say that buying gold is ineffective during times of crisis or recession.

Also, I don't see any difficulty or barrier in buying gold no matter what situation we are in.

[Silberman]

Gold prices have reached a new record above $2,500 per ounce. Investors expect that gold prices may rise further. Since the beginning of the year, the price of gold has risen by 20% and could reach $2,700 per ounce by the end of this year (2024).

At the same time, we must take into account the unstable state of the global economy, we can assume that investors will continue to invest in gold to the detriment of investments in cryptocurrency and specifically bitcoin.

What is your opinion on this issue ?

I do not really see the problem, even if a massive economic crisis started tomorrow there will be room for both gold and bitcoin to grow, because during those circumstances people will try to find any means to store their value and get rid of their fiat, so even if the price of gold increased dramatically, there will be a lot of people that will not know how to buy and store their gold, and since bitcoin is a digital asset, they may prefer to buy it over gold.

[indah rezqi]

Gold prices have reached a new record above $2,500 per ounce. Investors expect that gold prices may rise further. Since the beginning of the year, the price of gold has risen by 20% and could reach $2,700 per ounce by the end of this year (2024).

At the same time, we must take into account the unstable state of the global economy, we can assume that investors will continue to invest in gold to the detriment of investments in cryptocurrency and specifically bitcoin.

What is your opinion on this issue ?

I do not really see the problem, even if a massive economic crisis started tomorrow there will be room for both gold and bitcoin to grow, because during those circumstances people will try to find any means to store their value and get rid of their fiat, so even if the price of gold increased dramatically, there will be a lot of people that will not know how to buy and store their gold, and since bitcoin is a digital asset, they may prefer to buy it over gold.

It must be admitted that gold has been one of the investment options for a long time, and for some people gold will always be one of the investment options in the future. In the last decade, Bitcoin has offered better opportunities in terms of profit and security, but I believe the two types of investment can go hand in hand, quite a lot of people invest in both. The current and future generations will most likely tend to choose to invest in Bitcoin because of the ease of moving their assets. But for now, trust in Bitcoin and other crypto assets has not been able to beat gold on the one hand because of the lack of regulation or legal basis in many countries. However, in terms of profit, Bitcoin clearly offers greater and faster profits, Personally I also chose bitcoin for those reasons.

[icalical]

Gold’s rise to over $2,500 is largely driven by inflation fears and economic uncertainty, especially with the possibility of interest rate cuts . While it might seem like this could divert attention from crypto, I wouldn’t say it’s that straightforward.

Investors view Bitcoin and gold as serving different purposes. Gold is a more traditional kind of haven, but Bitcoin, for as volatile as it is, still is "digital gold" and presents higher return possibilities. The recent introduction of spot Bitcoin ETFs and growing adoption could keep crypto relevant even with gold’s current surge. So, while gold is doing well, I don’t think it’s going to completely overshadow Bitcoin. Both have their place in today’s complex economy.