Bitcoin And Gold

[BTC Future 3946]

Bitcoin was created as a P2P Electronic Cash System. Its original purpose was to facilitate online transactions through a decentralized network where nodes are solving SHA-256 equations and producing blocks filled with transactions, without a third party authorizing or restricting them.

Satoshi also capped the maximum number of Bitcoins in existence at 21 million and decided that the miners should be rewarded progressively for the security they provide to the network. This number (21 million) was this low because Satoshi understood that Bitcoin if succeeded and adopted it would be worth way more if it was also scarce. There is no exact explanation of why he chose this number. The added denominations of what we call now sats (satoshis) are a feature of Bitcoin, proving that Satoshi had in mind that Bitcoins price would be increasing. 

 

Scarcity is also a characteristic of the most popular store-of-value asset which is Gold. It is gold that investors are buying when the economic conditions are deteriorating and it is gold reserves that governments are trying to raise as beside gold being a metal used in many industries (jewelry, electronics, space tech, etc.) it is also used to protect the national currencies. Gold reserves can sustain the value of fiat currencies and help nations alleviate the effects of negative economic cycles (recession). Gold is the ultimate store of value asset.

 

While Bitcoin has a different use case from gold, it is still not seen as a store-of-value asset but mostly as a speculative one. I am also skeptical on this matter so far (and undecided), still I can agree with many Bitcoin influencers that it is moving towards this direction. It did not prove this back in March when every investor rushed in cash (USD, bonds) and later gold, but I think this may change in the future. It might require two more halvenings to reduce miners reward a lot but perhaps it is possible for Bitcoin to achieve the market cap of gold (which is currently $9 trillion), during a period of 8-10 years. A 9 trillion dollar market cap would mean that price of Bitcoin will reach more than $400,000 which is looking extremely high, and it would certainly require mass adoption.

 

After writing the above text, I remembered a chart which was created in 2014 and I found it in mid-2017. It predicted exactly the date Bitcoin hit $10K in 2017 and the next stop seems to be $100k in 2021. I guess we will be here and see if it will be correct again or not and we re-evaluate.

 

 

I've read many similar predictions about Bitcoin's price and was always in disbelief. I tried to rationalize all these calls by famous Bitcoin influencers and found this explanation one of the most reasonable. An asset as gold is seen universally as a store of value and Bitcoin perhaps can manage to become digital gold.

 

What do you think of the above? Do you believe that Bitcoin has a chance to become digital gold, a store of value, and achieve a price of $100K and even more?

Edited August 9, 2020 by BTC Future

[Swapzone 174]

Just now, SilverF said:

He considered that Bitcoin is the new gold, at least it is for the new generation of people willing to invest, but honestly 100k is too much money for something that you can easily manipulate and that does not offer stability, a more realistic price would be between 20k and  25k.

You're right! Gold and bitcoin have both been identified as safe-haven assets. While gold has long been identified in this way, bitcoin has more recently become something that investors flock to in times of distress.

[Ridam 7455]

Well personally I think Bitcoin is the digital gold with a lot of more opportunities than the Gold. And if we talk about digitalism it's the way of being investment digital with advanced blockchain technology that has it's own usecase and features. And while everything is going digital in this era, Bitcoins does the same. And talking about price reaching 100k , as the mass adoption is happening, bank has started Crypto custodian service in US, German.  We aren't too away from reaching that target in mine opinion.

[gourav789 2834]

gold and bitcoin both are brilliant coin if we can hold it for long-term investment . both Coin are Safe and having a good reputation in market from long-time . I never invest in gold beacuse bitcoin is my favourite and primary source of earning .

[Guru2050 8284]

Looking at them critically both has specific advantage, but I will not hesitate to go with Bitcoin, because it's the top leading coin, most valuable coin that possesses the capability of regulating other Crypto coins prices. It's my favorites coin for trading

[Honny143 13612]

Literally gold dominated hundreds of years in the safe Haven asset arena, on the other side bitcoin was launched in 10 years back and has only achieved more attention recognition in the last few years, if we compares both bitcoin vs gold

 

Transparency safety legality gold established system for trading weighing and tracking is old, and its very hard to steel sometimes fraudsters create fake gold otherwise its impossible to corrupt the gold, bitcoin also have same principles its corrupt also very difficult because of encrypted decentralized system, and complicated algorithm but the infrastructure to ensure its safety is not yet in place, there have been disaster and scam in recent time we notices so many big platform's hack are some doing scam, 

 

In this corona crisis so many investors sell their stocks in low prices and invest in gold are bitcoin, because they believe these both assets have good potential, compare to gold investors more trust in bitcoin because they want more profitable method, and everyone knows bitcoin have goid potential and ability it gives double profit in short period, yes bitcoin have the strength to touch 100k $ dollars in future, because in every country bitcoin users increasing day by day maybe chances bitcoin hit this magical figure.

[Dorjoy12 8962]

I believe with your words which is actually true but its too hard for bitcoin to reach up 100k usd within some years.. If you want to see btc price go up so then you need to wait for aa big bull run which can lead btc price to 100k but now a days its not possible because people need to do trading MORE on btc and on crypto Worlds.. Again if you talk about gold then i can say gold is a stable coin which has no chance to increase price like btc increase              

[Irungu 4299]

I think both are different , because one acts as a unit of trust, when you buy gold you buy something you can touch and thats why most people would ask if we can have bitcoin coins but what is bitcoin, what backs bitcoin , can we touch bitcoin thats the difference between the two

[BTC Future 3946]

3 hours ago, Irungu said:

most people would ask if we can have bitcoin coins but what is bitcoin, what backs bitcoin , can we touch bitcoin thats the difference between the two

I agree most people do not understand the qualities of Bitcoin. I am sure they don't understand what decentralization is and how it is a vehicle for financial freedom. I also suspect that noone understands that Bitcoin is currently the most secure network, not even many investors totally understand this part. 

Digging deeper they will find out but currently they just treat Bitcoin as a speculative asset.

It is up to us to educate the public.

[Raqeebzy 6456]

On 8/8/2020 at 9:31 AM, BTC Future said:

What do you think of the above? Do you believe that Bitcoin has a chance to become digital gold, a store of value, and achieve a price of $100K and even more?

Yeah, why not? Market capitalisation of around $9 trillion seems unreachable but I don't think it is impossible. Capitalisation roses from $1billion in 2013 to over $200B in 2017.

And the $100'000 price value by 2021; To be candid, I have read many experts opi nion and seen many charts that suggest in by 2021/22 but still a lot skeptical about it. I can say we could see up to 50k$ and $100k in 2022. 

[MuhammadSh 3067]

The chart which you mentioned is really surprised me and you make me remember that i have seen it before maybe in 2013 also ! whoever predict that in 2013 , he's really smart enough to know what would happen with satoshi's project after many years.. but about reaching 100k in 2021 , so it's really hard to believe that! but as we see in this chart so we shouldn't be surprised if we see that in 2021 in my opinion..

[Dark_Sky 8489]

On 8/9/2020 at 9:30 AM, Swapzone said:

You're right! Gold and bitcoin have both been identified as safe-haven assets. While gold has long been identified in this way, bitcoin has more recently become something that investors flock to in times of distress.

At this time I think bitcoin is more popular than gold because I never heard someone talking about it here in cryptoworld. Bitcoin is more popular in many investors at this time which I think it will surpass gold when it comes to popularity. 

[BTC Future 3946]

22 hours ago, MuhammadSh said:

whoever predict that in 2013 , he's really smart enough to know what would happen with satoshi's project after many years

I have found it in summer of 2017 when I first invested. I was adding month by month and I if I remember correctly it was just a day before the one on the chart that we hit 10k. I had the chart on my desktop as background, lol. I might put it back as a reminder to "hodl".

[BTC Future 3946]

On 8/13/2020 at 12:50 AM, taylorzed1 said:

Certainly yes, bitcoin today is already a store of value, especially for countries with inflation up there, we can say that it is virtual gold

Exactly. For example in Venezuela someone that gets a huge paycheck after lets say selling all his products in a day, what can he do with all this money that the next day will worth nothing? Argentina inflation is problematic for 20 years now, so they don't actually want to hold what they earn in their bank. Investing in gold has certain requirements and is way more difficult and dangerous than investing in Bitcoin.

[Moaz 7239]

Yes, I think that Bitcoin over the next ten years will be considered digital gold, and the demand for buying Bitcoin will increase in the future, and its price may reach 100 thousand dollars during the coming years, especially since the total number of Bitcoin is limited to 21 million

[Whited35 15285]

On 8/8/2020 at 2:16 PM, BTC Future said:

What do you think of the above? Do you believe that Bitcoin has a chance to become digital gold, a store of value, and achieve a price of $100K and even more?

I have quite different thoughts regarding these matters. I suspect the long term usecase of Bitcoin before it goes for the mass adoption trends in this world. Whales are getting increased and the major problem is they are responsible to play a game to manipulate the price of it. Recently there was a news like a company purchased a huge amounts of BTC to hold and convert cash in the digital form. If this trend gets widespread  for the other big multinational companies definitely it will not be a good news for small investors of Bitcoin. If we are really talking about the mass adoption of Bitcoin, its circulating supply has to find the ways for more investors.For a reference, Ethereum is at the very critical situation now. even before 4 months, I do not think some experts were there to predict this situation, miners are creating a loot as block rewards are getting increased. Now user has to pay more than $10 to move tokens and network fee is even increasing. I suspect but Bitcoin blockchain network may also face the similar situations in the future. I think , there will be the quantum computers and the advanced technology with high security payment methods to overlap BTC in the near future. 

[Abdul41x 0]

Gold and Bitcoin are similar both are asset but Bitcoin is a digital asset and the price tends to rise imaginable beyond expectation no doubt we are looking forward to a day when the price will shoot up to $100,000.

[P A Ashif 2409]

Currently most of the country's Airport is closed and people are are putting their investment in gold. So the price of gold is very high in my country now. And when scarcity comes the same case happen with Crypto also. So probably I considered Bitcoin as a digital gold

[BTC Future 3946]

On 8/17/2020 at 5:08 AM, Animesh2391 said:

There was a recent report that a company had purchased a large number of BTCs to hold cash in digital form.

Yes, I covered this big news on another post on this link. We can safely say that they were on a similar thinking and they bought a lot as the economy is in danger. We need to see now how Bitcoin will react when stocks begin to plummet.

[Tine0313 3053]

Gold and Bitcoin is a good assets, many people are investing on these two. Many people invest in gold especially those who are old generation since they are not familiar with this bitcoin. But now many people who are eyeing in bitcoin because it has a good potential.

[koussai999 1986]

I think that it is certain that Bitcoin will reach very high levels in the coming days, and I think that we must invest in cryptocurrencies, especially in Bitcoin because the profits are coming.

[Mcd0d0 5882]

14 hours ago, Tine0313 said:

Gold and Bitcoin is a good assets, many people are investing on these two. Many people invest in gold especially those who are old generation since they are not familiar with this bitcoin. But now many people who are eyeing in bitcoin because it has a good potential.

Well, i think there's only a few people who are just investing in gold because the price of it are just stable unlike bitcoin, if you invest on bitcoin, there's a assurance that you will get a profit on it.

[Tine0313 3053]

7 hours ago, Mcd0d0 said:

Well, i think there's only a few people who are just investing in gold because the price of it are just stable unlike bitcoin, if you invest on bitcoin, there's a assurance that you will get a profit on it.

Traditionally, many people were invested in gold since it was more popular then. Now we are more technologically literate, people prefer investing in bitcoin just like what you said the price is unstable it can goes up because of its market volatility.

[BTC Future 3946]

14 hours ago, marce9427 said:

if it becomes very valuable, the different governments will take it as a store of value.

There is a chance that it may become very valuable. Then the store of value argument will certainly be valid. Currently it is speculative asset. I'm waiting for stock market to dive at some point between now and the US elections. The way Bitcoin will react may mean a lot.

[malik6314193 5449]

Gold is too old and first exchange currency pf the world while bitcoin is new and digital currency. Both have their own value. We can't say that after bitcoin dominance we will leave gold.