How digital gold acts during a geopolitical crisis.

From American Public Media, this is Marketplace Tech.

I'm Stephanie Hughes.

Pretty much since its inception, the cryptocurrency Bitcoin has been compared to gold.

There's only so much of it, its value isn't tied to any fiat currency.

But gold is a traditional safe haven asset.

Well, Bitcoin isn't necessarily.

Gold surged in value when news first spread that the U.S. had attacked Iran.

Bitcoin didn't see the same immediate flight to safety.

I asked Gil Luria, head of tech research at D.A. Davidson, why this is.

It's been volatile throughout its life. And over the years, it's also been associated with

bad behavior, with shady behavior. People have gone to jail. People have used it for ransom.

And so it has connotations that people don't associate with safety. And that's cumulative over

the years. And we're probably a little bit in that phase where people are disillusioned

with Bitcoin and crypto, where gold has actually had a relatively

steady ascent. It's accelerated at times, but it doesn't have day-to-day collapses and moves

like Bitcoin has had really every day for the last 16 or 17 years.

Bitcoin is an alternative investment.

You know, it exists outside the traditional financial markets.

What does that mean for how attractive it might be during times of geopolitical crisis?

So it is attractive for that very reason.

There's a fixed amount of Bitcoin.

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