Gold Or Bitcoin: Which Safe Haven Assets Are Better When Geopolitical Heats Up?

JAKARTA In the midst of increasingly uncertain geopolitical situations, where political instability in the Middle East and uncertainty in Europe are in the spotlight. Many investors choose gold and Bitcoin as safe assets or safe haven in times of crisis. Then which one is the best? Safe haven assets are types of assets that are considered to have higher stability and value during the period of economic uncertainty or crisis.

Previously, Bitcoin was a prima donna among investors. This shows that in conditions of political and economic uncertainty, investors tend to switch to assets that are considered more stable.

Jeroen Blockland, founder of the Blockland Smart Multi-Asset Fund, through uploads on platform X revealed that the increasing geopolitical tension has prompted many investors to sell Bitcoins to invest in gold. This statement sparked heated debate on social media, with many giving opinions on this shift. One of the figures who commented and criticized him was Samson Moscow, CEO of JAN3com, who provided a new perspective on this phenomenon.

Imagine trying to hedge against war by selling #Bitcoin to buy paper gold that you can’t move anywhere in the event of actual war. https://t.co/KX6WDaBJiM

— Samson Mow (@Excellion) October 2, 2024

Imagine trying to hedge against war by selling #Bitcoin to buy paper gold that you can’t move anywhere in the event of actual war. https://t.co/KX6WDaBJiM

From an investment point of view, gold has many advantages. History notes that in times of a global crisis, investors tend to shift their funds to gold to protect wealth. Gold's advantage lies in its physical nature and value that has been tested all the time. Blockland's observation that investors are switching from Bitcoin to gold shows that Bitcoin is not yet mature enough as an asset to challenge the gold position as a reliable investment option in crisis situations.

However, not all investors agree with this strategy. In his upload, Samson Moscow firmly challenged the view that gold investment is the best solution. He argued that under actual war conditions, paper gold may not be useful because it cannot be transferred or accessed in a state of emergency. On the other hand, Bitcoin with its digital nature offers higher ease of transfer, even in the midst of a crisis.

In conclusion, both gold and Bitcoin have their own advantages and disadvantages. Gold has a long history of stability, while Bitcoin offers flexibility that other commodities find difficult to match. In this situation, choosing between the two can be a challenge in itself. However, if investors can identify their investment needs and objectives, determining the right choices shouldn't be difficult.