Since the escalation of tensions in the Middle East, gold is up almost 10%, while BTC is up over 20%. Since the war between Israel and Hamas began, the two assets have exhibited notable price increases. That’s why we asked AI bot ChatGPT which one would perform better as long as the conflict continues.
How did gold perform during the war?
Geopolitical tension always harms financial markets, as did the “special military operation” launched by Russia against Ukraine last year. However, during these periods some assets tend to perform better than others. The Israel-Hamas war started exactly three weeks ago. At the beginning, the gold price was around $1,830, which was the local low. At the time, the precious metal had shed annual gains following a 7% decline in two weeks.
However, cryptokoin.comAs you follow from , political uncertainty has started to affect the market. Thus, gold made a strong upward move. The shiny metal quickly reclaimed $1,900 and continued to rise. It even surpassed the $2,000 mark late Friday night. Thus, gold bullion has gained approximately 10% in value since October 6.
Let’s take a look at Bitcoin’s performance
While Bitcoin’s performance has been somewhat the same, there is some speculation that its rise could be attributed to the possibility of a spot BTC ETF being approved in the US. However, such a product has not yet come to light. When the war broke out, the price of BTC was around $28,000. In fact, it initially fell to sub-$27,000 levels. However, unlike the gold price, it started to rise rapidly, sometimes even influenced by fake news.
Bitcoin saw its most significant price increase on Monday and Tuesday. These days BTC skyrocketed by several thousand dollars within hours. In fact, it hit a 17-month high above $35,000. Bitcoin is currently trading above $34,000, although it later lost some ground. This means his three-week gain is 23%.
What does the artificial intelligence bot ChatGPT think?
When asked about the possible future performance of BTC and gold price amid the ongoing war, the AI chatbot refuses to answer directly. Instead, it notes that both assets can be affected by “a wide variety of factors, including political events, economic conditions, investor sentiment and more.” He then says that every investment instrument carries certain risks.
He also notes that future performance cannot be predicted based on past movements, although some, such as gold, have a long history as a hedge against inflation and political uncertainty. We ask the artificial intelligence bot the question “Which is the better safe haven investment, Gold or Bitcoin?” Thereupon, ChatGPT makes the following statement:
Gold has a proven track record of providing a reliable hedge against inflation. It tends to retain its value over long periods of time, even during periods of high inflation. Bitcoin is often touted as “digital gold”. It is also seen by some as a potential hedge against inflation due to its limited supply and the belief that it can act as a store of value in the digital age. However, Bitcoin has a short history compared to gold. So it has yet to be tested over multiple economic cycles. We should not forget this either.
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