We asked ChatGPT whether Bitcoin or gold would fare better in the midst of the Israel-Hamas war.

Since the conflict or war between Israel and Hamas started a few weeks ago, two assets are showing significant price increases – Bitcoin and Gold.

So, we decided to ask the AI ​​chatbot which one of the two would keep up the positive activity and perform better during the conflict.

Gold Vs. Bitcoin in times of war

Geopolitical tensions are always putting pressure on financial markets, as happened last year when Russia launched its “special military operation” against Ukraine, but some assets tend to perform better than others.

The Israel-Hamas war began just three weeks ago, and the price of gold was at a local low of around $1,830 against the dollar. As reported at the time, the precious metal lost 7% in two weeks, missing its annual gain.

However, the political instability has started to affect the market and gold has reached a significant level. It quickly recovered $1,900, continued to rise, and flew past the $2,000 mark late Friday night. As such, the bull has jumped nearly 10 percent since Oct. 6.

Bitcoin's performance is somewhat similar, although there is some speculation that the BTC ETF space may be accepted in the States. However, such a product is yet to see the light of day.

When the battle broke out, the price of BTC stalled around $28,000 and first fell to $27,000. However, it quickly began to attract attention, sometimes influenced by fake news. The most important price increase was on Monday and Tuesday, when the cryptocurrency rose in several big hours and showed a 17-month high of more than $35,000.

Although it has lost some ground since then, BTC is currently trading above $34,000. This means that the three-week gain is 23%.

What does ChatGPT think?

When asked about the future performance of BTC and gold amid the ongoing war, the AI ​​chatbot refused to give a direct answer. Instead, he asserted that both assets could be affected by “various factors, including political issues, economic conditions, investor sentiment and more.”

Any investment instrument carries certain risks and although some, such as gold, have a long history of hedging against inflation and political instability, future performance cannot be predicted based on past performance.

On the question of whether Bitcoin or the precious metal is a better safe haven, chatgpt said:

“Gold has a proven track record as a reliable hedge against inflation. It tends to hold its value for a long time, even in times of high inflation.

Bitcoin is often referred to as “digital gold” and is seen by some as a hedge against inflation due to its limited supply and the belief that it can serve as a store of value in the digital age. However, it should be noted that Bitcoin's short history (compared to gold) means that it has not yet been tested by many economic cycles.