Compass Investments

27.7% see bitcoin as a risky asset, and the same percentage see it as a safe haven.

In times of turmoil, 34.6% prefer to switch to gold, considering it a more stable instrument.

Cryptopolitan surveyed 200,000 crypto investors on bitcoin’s role in geopolitical unpredictability. The comparison shows whether BTC is perceived as a risky asset or a safe haven.

military action in Iran, along with rising oil prices and peak global anxiety, are putting sentiment towards bitcoin to the test. As such, Cryptopolitan conducted a poll among its audience to gauge the current value of BTC.

Cryptopolitan’s data shows that 27.7% of depositors view bitcoin as a source of risk, and the same number view it as a reliable means to protect capital. This creates a divergence of opinion and a general ambivalence, which is fraught with chaos during volatile periods.

Bitcoin was promoted with the idea of digital gold, and in the long term, it has fulfilled its mission. However, in short-term economic cycles, BTC behaved as a high-risk asset with a high beta. Price fluctuations amplified volatility in familiar markets, generating substantial profits during upswings, but also deeper collapses.

During its existence, bitcoin has not been able to take a firm position in the global markets due to the peculiarities of its implementation and events in the field of cryptocurrencies, affecting the entire industry.

For a long time, gold buyers saw no growth while bitcoin experienced its historic rise. However, during recent periods of uncertainty, gold has reaffirmed its safe haven status while showing higher levels of confidence.

investors have placed their trust in gold 34.6% of the time, choosing an asset with less volatility. The gold market is much deeper and more liquid, and has withstood even periods of turmoil with significantly lower volatility.

The switch to gold has shown that bitcoin is at best a nascent alternative, not a complete replacement. Crypto traders have made an important change by turning to gold, utilizing the crypto infrastructure already in place. Even the big players (whales) traded tokenized gold during the recent BTC crash.

Bitcoin is not the ultimate lifeline, but it retains an important role in today’s markets. The asset remains competitive due to its 24/7 availability and ability to respond quickly to any geopolitical event.

BTC is also widely known and accepted by major investors and institutions, making it more solid over the years. This allows some investors to place funds in BTC in anticipation of possible growth.

As Cryptopolitan previously reported, capital allocation is still not fully defined. Investors and traders often move funds into BTC, using it as a tool to increase risk and as a hedge against certain market conditions.