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

[eightdots]

That's a difficult question to answer. Over the years of Bitcoin existence, its long-term growth was incomparably higher than that of gold. So gold was kind of a safe option with lower profit, and Bitcoin was a riskier option with much higher profit. But things might be different with Bitcoin now, considering how mild its growth was from 2021 to 2024. Maybe we'll see another bull run, showing that Bitcoin is still a much more profitable option. But maybe not, and then gold will indeed be a very attractive option to many investors.

Not that difficult. Gold has a different client-base. It's rare for gold bugs to hold bitcoin.

People who already have gold will keep buying gold, or taking profits and buying stuff.
People who have bitcoin will not dump it when it's low just to buy gold that spiked up. That would be stupid.

The only people that could be affected by this are those who are in fiat, losing 5% a year to inflation, thinking if they should get bitcoin or gold. The problem is that if bitcoin goes down and gold up, like it did recently, it's more profitable to buy bitcoin.

I don't think that's the case. Gold bugs and bitcoin people have many common beliefs. Both hate the FED, both think this current financial system is not sustainable and bound to fail, both say FIAT shouldn't be printed recklessly out of thin air... There are probably other similarities which I can't think of right now.

It is just some gold people don't see btc as a viable alternative to FIAT and it is OK. Some bitcoin people don't like gold and they think it is just another dumb metal or yellow dirt and that's OK too but these people are the minority. The majority who like btc or gold the most, the chances are they probably hold the other asset too. Maybe a lot less than their favorite asset but they do, in case they were wrong about their original choice.

We can increase the number of similarities you mentioned, but in general, the similarities are as you said. The main feature that separates those who prefer gold and Bitcoin is the traditional structure. It is not always seen that those interested in traditional investment instruments switch to Bitcoin or buy Bitcoin to diversify their investments. People cannot give up their habits easily.

Some investors who see the potential of Bitcoin invest in both gold and Bitcoin. Gold is seen as a more secure investment tool, although it does not bring as much profit as Bitcoin. Gold has a certain rate of increase, and those who prefer this investment tool are happy with this rate of increase. Perhaps for them, risk is the main factor that determines many of their preferences.

[Samlucky O]

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 don't think rising of gold value will reduce the attractiveness of bitcoin, because bitcoin is relatively scarce meaning it is limited in supply and anything that Is limited in supply has the potential to be more expensive. In other words gold is not limited in supply it is vast all over the universe and it's mined everyday increasing the numbers of gold in reserve. and if it keeps increasing day by day, the value will reduce and definitely people will swap to bitcoin. The only thing why most people prefer gold to bitcoin is because most people prefer to invest in a physical asset over online asset. which you may invest in online asset and lost at any moment with just some little mistake. And moreover the reason gold is popular is that it has also been in existence way long before bitcoin. So it will take time for most people to know about it. Illiteracy is another problem why most people prefer gold over bitcoin investment because they are not educated or are not good in new tech but good in physical asset like gold since there is no need for too much carefulness and mental work.

[d5000]

if mining drops a ton btc may drop in price
we saw this in spring of 2021.

There is some logic behind this, but the situation in 2021 is very unlikely to happen again.

In 2021, mining was banned in a country which before had more than 50% of the hashrate. There is currently no country with such a high importance, the US may be close to the 40% mark but 50% is unlikely. A complete mining ban in the US is also unlikely.

So what's left as a "scary miner-incited event" is a "mining bubble capitulation". This means that miners' income could be insufficient to sustain the current level of infrastructure. Gradually the weaker players will move out and it could take some time until difficulty is balanced again, above all in the case of a prolonged and deep bear market.

However, the chances that such an event can impact the market as significantly as in 2021 lowers gradually. Each halving reduces the importance of mining as sellers in the market, and even in periods without halving the ratio between miner income and total supply reduces each block. Miners could still increase their significance if the Bitcoin price grows more than the trading (selling) volume and this ratio more than doubles in 4 years, but that is relatively unlikely too.

This means that over time, Bitcoin is very likely to become "safer" each year from such a "miner-incited crash". This doesn't mean it can't happen, as miners are still holding large reserves and would sell some of them in such an event (actually, in the last 24 months they sold reserves according to onchain analysis companies). But if it doesn't happen in the next few years I think such an event would lose much of its "fear potential".

Since the last halving in April Bitcoin has also probably a lower "supply inflation" than gold. See this thread.

[STT]

Gold is not really for active usage, its passive so no its not a concern its actually confirmation of the general trend of dollar devaluation is ongoing so gold recovering and will far surpass its 2011 pricing.    Remember when dollars were measured in value by the weight of gold that was exchanged, that is still valid comparison now and shows how little the prices would be if not adjusted.  Same idea applies to Bitcoin over time, its price is due to rise.

[asriloni]

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 ?

The increase in gold's price doesn't really affect bitcoin's attractiveness. This is because, besides being a payment system, bitcoin has a small supply growth rate. Gold couldn't offer that. Bitcoin's supply growth rate is slowing. It may cause deflation, which will raise bitcoin's price.

And I would not consider people who bought gold purposely to have used it as their investment. I'd rather see them buy gold as a safeguard against inflation and potential civil unrest.

[retreat]

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.

[EarnOnVictor]

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 ?

We should not mix what's not necessary, Bitcoin is a beautiful asset, a top one for that matter in the cryptocurrency world, while Gold also lead in its own classification, they are both leaders that can coexist in the financial market without any issues, especially when they are not even of the same classifications. People worry too much about the two, it's awful, tell me, when Bitcoin rose to its ATH in March, was Gold not rising? That means that the two are almost completely independent of each other, we should stop the misconception and use the reality of the market to judge the two.

For now, I trade and invest in Bitcoin and Gold and I treat the two like precious assets without sentiments, for I'm neutral about the two in terms of the one I love best, I love both. They are always good if we know how to deal with them, and for Gold, I only trade it, but for Bitcoin, I trade and Invest it, which proves that I deal with Bitcoin the most.

[CryptoBuds]

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 don't think rising of gold value will reduce the attractiveness of bitcoin, because bitcoin is relatively scarce meaning it is limited in supply and anything that Is limited in supply has the potential to be more expensive. In other words gold is not limited in supply it is vast all over the universe and it's mined everyday increasing the numbers of gold in reserve. and if it keeps increasing day by day, the value will reduce and definitely people will swap to bitcoin. The only thing why most people prefer gold to bitcoin is because most people prefer to invest in a physical asset over online asset. which you may invest in online asset and lost at any moment with just some little mistake. And moreover the reason gold is popular is that it has also been in existence way long before bitcoin. So it will take time for most people to know about it. Illiteracy is another problem why most people prefer gold over bitcoin investment because they are not educated or are not good in new tech but good in physical asset like gold since there is no need for too much carefulness and mental work.

Creating an online asset with a limited supply like bitcoin or even less is not that difficult, so I don't think that just because bitcoin has a limited supply it will be more expensive. The value of bitcoin depends on its use case, it is a currency, the only decentralized asset so far. It can be said that supply also plays a role in creating the value of an asset, but the use case is the main factor that determines the value of that asset.

Also, I disagree when you say that the value of gold will decrease as supply increases. As OP mentioned in his post, gold price is up over 20% since the beginning of the year and gold market cap is 16x that of bitcoin.

Investing in gold or bitcoin depends on each person's preference, so I think when the price of gold increases, it will have almost no effect on the attractiveness of bitcoin and vice versa. The growth of Bitcoin has never diminished the appeal of gold, as evidenced by the fact that gold remains a favored asset by governments, institutions, and large investors...whenever the world economy is unstable and the price of gold continues to increase over time.

[ultrloa]

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.

Exactly since right now we already see the price of gold rising but did we see us get attached more on gold and divert our attention to it? Well provably not usual bitcoin main stay or shall we say a bitcoin investor since start will not go anywhere and just continue to invest with bitcoin. Maybe there are some scenarios that people will also grab gold but for sure they spend less percentage on it and still want to maximize their asset to bitcoin.

Maybe for other who don't know bitcoin they might choose gold first than bitcoin since this situation will depend on the level of understanding of people who like to invest on those asset mentioned. But for sure nothing will lose an attractiveness on both asset since they are good to have. So maybe people might just think about splitting their funds so that they could able to have those valuable asset to hodl for long term.

[kro55]

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 ?

We should not mix what's not necessary, Bitcoin is a beautiful asset, a top one for that matter in the cryptocurrency world, while Gold also lead in its own classification, they are both leaders that can coexist in the financial market without any issues, especially when they are not even of the same classifications. People worry too much about the two, it's awful, tell me, when Bitcoin rose to its ATH in March, was Gold not rising? That means that the two are almost completely independent of each other, we should stop the misconception and use the reality of the market to judge the two.

For now, I trade and invest in Bitcoin and Gold and I treat the two like precious assets without sentiments, for I'm neutral about the two in terms of the one I love best, I love both. They are always good if we know how to deal with them, and for Gold, I only trade it, but for Bitcoin, I trade and Invest it, which proves that I deal with Bitcoin the most.

I think OP created this topic because there are a lot of debates between gold and bitcoin on the forum, and topics between gold and bitcoin always attract a lot of attention.

I agree with what you say, we don't need to mix or compare when we can have both. Both are considered as the best assets and investments today, and owning both is the right thing to do instead of comparing them.

By the way, we always talk about diversification but it is hard to understand why so many people always praise bitcoin and criticize gold. I wonder, are those who are talking bad about gold, are they diversifying their investments like they said or are they putting all their eggs in one basket?

[michellee]

Maybe gold price can rise for more since that will depends on the scarcity from gold itself. But that will not reduces the attractiveness of Bitcoin because people who already see the advantage will still want to use Bitcoin. Gold and Bitcoin have its own fan and they will continue investing their money to both gold and Bitcoin.

In the unstable state of the global economy, people will search for what they want. If they like gold, they will invest in gold and so do with Bitcoin investor. And with the popularity of Bitcoin from time to time, people will realize that they can also use Bitcoin as their investment.

That will help them to have both type of investment that will benefit them. But if they don't want to invest in anything, that will be up to them. Maybe they have their own reason to use the other way to survive in the hard situation.

[lixer]

Judging by the gold price chart - the trend has started to change, due to the growth of the dollar value. And the price expectedly went down.... It should be taken into account that one of the main consumers of gold, at least at the official level since 2021, China, began to receive in payment for their goods from Russia ... The reason is trivial - the risks of Western sanctions forced China to block settlements in yuan with Russia, as its raw materials appendage is critically dependent on goods from China. And in this situation Russia will be ready to pay whatever China wants. Now the question is why would China buy gold for its currency (which China is woefully short of) when Russia will give it back at a much lower price and in large quantities? Most likely, we will continue to see a decline in gold prices....

Having sanctions as the new "warfare" is something that west likes to do because west could go a lot longer without east, then east can go without west and this has been proven by the west during the Russian Ukrainian war. This is why I think gold has a lot of value to all these nations, including China of course, but the reality is that if USD stays strong then there won't be any need to it at all and USA could just continue printing without worrying about it at all.

We are talking about a nation that is so powerful that even with insanely high level of inflation that USA has, others had bigger so they stayed strong still, whereas China had their own type of 2008 mortgage crisis happen right on the covid time, which bankrupted almost all the big huge companies they had.

[red4slash]

I don't think that this detracts from the attractiveness of bitcoin because at the end of the day gold has its own market just like bitcoin and when they are currently on the rise then maybe what I can say is that people are starting to become more investment savvy for their future and moving from savings to investments.
That's still pretty good because they realise that when they save money in the bank then indirectly the value will continue to shrink but it's a different story if this is invested. Although the asset is gold but with them literate towards a better future of course it is a good thing but that does not mean bitcoin loses its appeal in this case because after all everyone has their own perspective and choosing gold could be because they want a safer one in terms of risk because we know that bitcoin the risk can be much greater than gold.

[JeffBrad12]

Bitcoin and gold have their own investors, and the increase or decrease of either one will not affect one, because each investor already has their own preferences, so the increase in the value of gold will not affect the attractiveness of bitcoin directly, but there may be a small effect, but it is not necessary to consider.

gold will only reduce bitcoin attractiveness if it could grow as fast as BTC and yes as you said, gold has its own investors, the people who are investing in gold are usually looking for a hedge against inflation.
while BTC investor looking for great and fast return that could help them grow their generational wealth.
entirely different market i'd say.

so the saying that that gold with its recent pretty minimalistic value increase gonna reduce bitcoin's attractiveness is just an empty word in my opinion.

[erep]

gold will only reduce bitcoin attractiveness if it could grow as fast as BTC and yes as you said, gold has its own investors, the people who are investing in gold are usually looking for a hedge against inflation.
while BTC investor looking for great and fast return that could help them grow their generational wealth.
entirely different market i'd say.

Even crypto investors are diversifying their assets into various other asset classes including gold to maintain asset stability from the impact of inflation and global economic uncertainty, gold investment has a definite growth potential in the last few years and the growth of gold prices this year is very high which has never been achieved in the history of gold prices. However, the growth of gold prices does not mean that the market demand for bitcoin will decrease because reviewing the annual chart shows that bitcoin has increased in price significantly more than gold and crypto investors have generated very high returns from the assets they hold in their portfolios.

so the saying that that gold with its recent pretty minimalistic value increase gonna reduce bitcoin's attractiveness is just an empty word in my opinion.

Yes, gold holders still dominate over crypto asset holders, but the statement that the increase in gold can minimize the bitcoin audience is very inaccurate because every day many new crypto investors continue to increase for future profit opportunities.

[justdimin]

I think OP created this topic because there are a lot of debates between gold and bitcoin on the forum, and topics between gold and bitcoin always attract a lot of attention.

I agree with what you say, we don't need to mix or compare when we can have both. Both are considered as the best assets and investments today, and owning both is the right thing to do instead of comparing them.

By the way, we always talk about diversification but it is hard to understand why so many people always praise bitcoin and criticize gold. I wonder, are those who are talking bad about gold, are they diversifying their investments like they said or are they putting all their eggs in one basket?

That is mainly because we already know bitcoin is better than fiat, and we know that gold is better than fiat as well. So that means these two are the finalists on the asset competition, whichever one wins your mind, you invest into that. Gold is not a bad choice, and if anyone wants to invest into gold then I wouldn't stop that person, it is not a bad idea at all and I respect anyone who does that. But, I still prefer bitcoin because I believe that the profits could be a lot higher there, it is not a simple thing at all.

We should consider this to be something that can get a lot better, and bitcoin has more volatility as well so trading bitcoin could be a lot better. In either case, gold or bitcoin, people will make more than fiat without a doubt, holding fiat is the worst thing ever. There is also a chance about stock markets if you want to invest, but it is not a thing that you invest, they are all companies, so you would have to trust those companies that you invest into, and I do not trust any company to do right by shareholders.

[goldkingcoiner]

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 think good is a good alternative to Bitcoin, if you are looking to diversify your investments (which is a very smart idea - not to put all eggs into a single basket).

But as far as profit goes? Bitcoin has always gone higher and people make by far more profits with Bitcoin than with gold or any other asset.

So I will stick to my opinion that gold will not reduce Bitcoin's attractiveness.

[fuguebtc]

I think OP created this topic because there are a lot of debates between gold and bitcoin on the forum, and topics between gold and bitcoin always attract a lot of attention.

I agree with what you say, we don't need to mix or compare when we can have both. Both are considered as the best assets and investments today, and owning both is the right thing to do instead of comparing them.

By the way, we always talk about diversification but it is hard to understand why so many people always praise bitcoin and criticize gold. I wonder, are those who are talking bad about gold, are they diversifying their investments like they said or are they putting all their eggs in one basket?

That is mainly because we already know bitcoin is better than fiat, and we know that gold is better than fiat as well. So that means these two are the finalists on the asset competition, whichever one wins your mind, you invest into that. Gold is not a bad choice, and if anyone wants to invest into gold then I wouldn't stop that person, it is not a bad idea at all and I respect anyone who does that. But, I still prefer bitcoin because I believe that the profits could be a lot higher there, it is not a simple thing at all.

We should consider this to be something that can get a lot better, and bitcoin has more volatility as well so trading bitcoin could be a lot better. In either case, gold or bitcoin, people will make more than fiat without a doubt, holding fiat is the worst thing ever. There is also a chance about stock markets if you want to invest, but it is not a thing that you invest, they are all companies, so you would have to trust those companies that you invest into, and I do not trust any company to do right by shareholders.

I also prefer bitcoin and would choose it over gold but I wouldn't feel bad if someone chose gold over bitcoin. After all, both are potential and safe investments, and which asset to invest in will depend on each person's needs. For those who prefer stability and are looking for a hedge against inflation, we cannot force or advise them to choose bitcoin while gold would be a more suitable choice. And for those who are hungry for wealth and are willing to take bigger risks to make a breakthrough in life, bitcoin is the perfect choice.


@OP, because in my opinion the needs and preferences of gold and bitcoin investors are not the same. So I think the rising price of gold will not reduce the appeal of bitcoin and vice versa, bitcoin will never reduce the appeal of gold even if it reaches $100k.

[SamReomo]

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).

While Gold prices have risen by 20% in a year, most of the cryptocurrencies including Bitcoin have risen by way more than that percentage. Bitcoin's price in January of 2024 was around $42k and now it's at $56k, that's more than 33% and if we go a few months back then at that time Bitcoin reached a whopping value of around $73k, and that's more than 72% growth in a year. But, if we look at some altcoins like Solana then the growth was way higher in those altcoins.

[slapper]

Maybe gold price can rise for more since that will depends on the scarcity from gold itself. But that will not reduces the attractiveness of Bitcoin because people who already see the advantage will still want to use Bitcoin. Gold and Bitcoin have its own fan and they will continue investing their money to both gold and Bitcoin.

In the unstable state of the global economy, people will search for what they want. If they like gold, they will invest in gold and so do with Bitcoin investor. And with the popularity of Bitcoin from time to time, people will realize that they can also use Bitcoin as their investment.

That will help them to have both type of investment that will benefit them. But if they don't want to invest in anything, that will be up to them. Maybe they have their own reason to use the other way to survive in the hard situation.

Gold's up, Bitcoin's mooning. Different animals in the same jungle. Investing is about psychology not about numbers. Gold? That's grandpa's safe haven. Bitcoin? That's the rebel yell of the digital age. People purchase into a narrative rather than gold or Bitcoin. It's about their interpretation of that shining rock or line of code. It expresses their viewpoint and their values

Sure, gold is rare. But one other thing Bitcoin boasts is a cult-like following. These people believe rather than only invest. They consider Bitcoin as a revolution rather than as a tool. The planet is insane, and for those who see the storm approaching Bitcoin is their life raft. Gold could be the traditional guard, but Bitcoin? Whether or not you like it, that is the future