The same thing goes for gold, that's the point the mechanisms of both assets share some similarities but the potential for growth is just on another level with BTC.
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- Thread starter Murwantoro
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Thank you! Thank you for understanding my point of view! I don't hate cryptocurrencies, I find them very interesting but there are facts to be considers such as your statements.
But at the same time, I hate to admit it but, Gold is losing its title as the 'asset to hedge against inflation' due to it's price reaction to geopolitical events, and in some inflationary periods, Gold has underperformed.
lastly, I'd say IF indeed Gold is giving that title away, it wouldn't be BTC, it would be to stocks and real estate.
The price of gold is influenced by demand and supply factors, this correlates with the USD, usually if the USD weakens the price of gold rises, conversely if the USD strengthens gold may fall. But China also contributes to gold demand, China's accelerating economy could push up gold prices.
Can you elaborate on why would it push up gold prices? I'm talking about China's economy
China including in the largest importer of gold globally and an increase in Chinese demand can cause gold prices to rise.
True. I did quite recently read some news articles about it as gold reached AHT.
I am also amazed recently read the chart of gold already reached above $2500, it has already broken the $2400 zone. It is a record new ATH once again in 2024.
Indeed. I truly believe that Gold is a beauty of an asset.
Gold has become a safe-haven asset amidst global uncertainty, perhaps when the world is threatened with World War 3, the price of gold might soar again, but gold is very volatile, sometimes profit-taking can bring the price down quite deeply.
To be honest, even though it's not my thing but I believe WW III could have a direct on BTC more than it would have on Gold.
Perhaps, the price of Bitcoin is much higher than gold, now BTC has reached $64k, but gold may also rise higher, now it is above $2500.
Sorry, but that doesn't make much sense. The price of gold is determined per arbitrary unit of mass. If you switch from troy ounce to a metric ton, it becomes much more expensive than 1 BTC. You cannot draw any meaningful conclusions from such comparisons.
Getting fact-checked by admins is tough.
Comparing two things that have different units of measurement is not meaningful at all.
That's as meaningless as Billy Carson saying "Hydrogen Frequency"!
Thank you for the correction, this has provided new enlightenment for me.
Gold is now likely to stay above $2500 but BTC is down at $58k
Mate, Bitcoin is a coin that can be influenced by whales of the market. How can you trust an asset like that?
Gold, on the other hand, has so much liquidity that only geopolitical events that correlate to something that can be traced by news sources affect it.
I'd argue that the influence of whales on the market is rather similar for BTC and gold. In BTC, the biggest influence is exercised by miners and governments. In gold, it's mostly central banks.
Yes, I think so, the central bank uses gold as a reserve, but I also think that gold-importing countries such as China and India can also influence the gold market.
I completely agree with you mate, but the difference is that you can follow up on banks news and be prepared for certain situations. Can you be prepared for what the whales might do? Who are they? They could be anyone with huge amounts of capital in BTC, whether that is an individual or an organization. Then again that organization could be from an official governmental organization or a private organization. You see how much risk there is to it? I'm just being realistic mate.
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