Revisiting the Bitcoin vs Gold Discussion

I've been holding onto bitcoin for a while now, but I started selling some off earlier this year. Part of it was to cash in on profits, and part was due to the anxiety from the wild trade wars Trump kicked off in April. So, I began looking into precious metals like gold and silver, especially since they usually perform well in uncertain economic times like during Covid and the trade wars. The prices of precious metals tend to stay steady because there’s always a strong demand from various industries. For instance, regular cars have about 10 to 15 grams of silver in them, and that amount doubles in electric vehicles. Silver’s also heavily used in electronics and renewable energy stuff. Meanwhile, gold is super sought after by central banks and has a solid backing from the jewelry sector. This makes the market for gold and silver pretty much unlimited, while bitcoin seems to depend mainly on speculation, which is way more restricted. Almost everyone has some gold or silver in their lives thanks to cellphones, computers, jewelry, cars, and all that. So when folks like Michael Saylor claim bitcoin might one day match the market cap of gold or silver, I really doubt that. There’s just no market for bitcoin outside of speculation or investment. In tough economic times, precious metals tend to hold their value while bitcoin usually takes a hit. Bitcoin used to be a big chunk of my portfolio, but after realizing all this, it’s now less than 2%. I once thought bitcoin might actually replace gold’s market cap someday, but looking back, that was a pretty naive thought, lol.

You have talked interesting but only outlined the advantages of the gold and silver which I found to be biased. Did you forgot Bitcoin do also has it bullish season and as it may rely it market adoption on speculations, it limited supply @ 21 M  is a very good hedge against inflation. Of course Bitcoin is just made for monetary services and transactions and as a digital currency it can not my physical used. So clearly this does not make Bitcoin limited to the precious assets.

I have previously outlined the benefits of bitcoin many times on this forum. I may continue investing in bitcoin but it will probably be much less than before. People should have more realistic expectations for bitcoin and keep things in perspective. It's probably best to keep a small allocation in it but I do not advise going all in on such a highly speculative asset. I used to be all in myself but that was when bitcoin was much cheaper and could 5x or 6x a lot easier. But at the $100K mark the market is probably saturated and will have a hard time to even just double from there. If the price drops back down to $30K or 40K would be a good time to buy back in. Then it could easily double or triple again from there. EDIT: Forgot to mention two other major concerns for bitcoin: It is severely restricted in China and India. Without support from two of the biggest markets in the world, that is a serious handicap for bitcoin. OTOH, precious metals enjoys unlimited support in both countries.

Most people come to the crypto market because of the Bitcoin hype, the market trend after the hardfork makes new people come and more and more people are discussing bitcoin, when the price is no longer bullish, that's where the loyalty of new people is being tested and it's ridiculous that they curse bitcoin and say that btc is a scam, now I understand people will praise when they are profitable, for now the market capacity of gold and bitcoin is very different, gold still dominates the market, if bitcoin becomes a legitimate global currency and can be used globally then bitcoin will be able to compete with gold

Well, the global demand for gold is indeed very high, so it is in high demand for various purposes, whether it is jewelry or as part of technological, or electronic devices. Meanwhile, Bitcoin plays a role as an alternative currency that cannot be controlled by anyone, and its limited supply can be used as an investment asset with the potential for appreciation. So, gold and Bitcoin both have their own value that can experience price growth. Personally, I consider Bitcoin a digital version of gold, and the difference lies in scarcity, which means the number of Bitcoins is truly limited. Speaking of market cap, I think Bitcoin has the potential to continue growing, and I recall Bitcoin even surpassing the market cap of silver some time ago. However, it is all about time, Bitcoin can't experience growth overnight, and that is why there is the term "Hodler is Winner", and I think Bitcoin still has restrictions from some governments or countries, so there are still limitations to its adoption. I am sure there will come a time when people will use Bitcoin freely like gold, and that is when we will see Bitcoin match gold market cap, or perhaps surpass it. Cmiiw.

Well the way you view between Bitcoin and gold were like few threads I read in the past where they think gold is superior because it can be used for many things. Although your point are valid, but Bitcoin have something that other assets don't have which is decentralization and uncontrollable. The other assets are actually have real life use cases, but since Bitcoin don't have that and it can reach to top 10 assets, I think it's possible. Bitcoin is just too unique, that's what all I can say.

I would still invest in bitcoin instead of gold or other metals because I believe bitcoin will still give better returns in the long run. But I'm glad you understand the point, bitcoin is unlikely to surpass gold in terms of capitalization and I completely agree with you. The demand for gold is huge and is used in almost every aspect and corner of life, it is not limited to speculative purposes. Meanwhile, bitcoin is used almost exclusively for speculation, it has no other practical applications to increase demand. Bitcoin supply has an advantage over gold but unfortunately its practical applications and use cases are quite limited, thus the demand is also limited. Bitcoin cannot compare to gold in terms of global demand. So it would be exaggerated and biased to believe that bitcoin could be on par with gold, let alone surpass it.

So, you're basically saying that Bitcoin has no intrinsic value and relies solely on speculation to grow? You're dead wrong, right there. Bitcoin has intrinsic value, its mining, its scarcity, its security, and its utility as a store of value. All of these factors make Bitcoin a valuable asset, not just a speculative game, as many people often misunderstand. All of these factors give Bitcoin a clear intrinsic basis, so its price growth isn't just the result of hype or mere speculation, but rather a real realization that Bitcoin is a valuable asset. And did you think the gold market doesn't have speculation? It does. in fact, almost all assets traded on the market have speculation. But the reason it's more stable is because it's mature and its market is much larger. Bitcoin, on the other hand, is volatile because its market is still young. However, as Bitcoin adoption grows and more people hold it, its price will tend to stabilize, just as the gold market was volatile in its early years.

My friend, I think we shouldn't be too skeptical in our judgments and opinions, which can lead to confusion when others read them, and we have to bring up other people's names, and we can't necessarily conclude what they're actually saying. To me, Bitcoin does seem like systemic speculation, but in terms of long-term potential, it's still a good investment. Gold is indeed more established and has been recorded as one of the oldest investments in the world, reflecting a country's financial foundation and economic prosperity. There are pros and cons to this, but I think it's normal, just a momentary paradigm shift based on market conditions. There's no other way to do it without shifting gold's position. The most important thing is that BTC has been recognized and is now a standalone asset class that is increasingly attractive and indeed interesting to discuss today.

Gold is also a decentralized asset because it is distributed and scattered globally and is not controlled by any individual, agency, or government. Both are decentralized but the difference is that gold is a physical asset, while bitcoin is a digital asset. That makes bitcoin easier to store, move, and offers better privacy than gold. Bitcoin is unique and there is no denying that. But OP is right, other than being used as an investment asset, a store of value, bitcoin doesn't have as many practical applications and use cases as gold. So, bitcoin entering the top 10 most valuable assets in the world is a huge achievement, but expecting it to surpass gold is unrealistic. To do that, bitcoin needs to be applied more, relying on investment demand will not have enough potential to surpass gold.

From some of your experiences, I can probably conclude that you don't fully understand Bitcoin's value, or perhaps you don't understand the four-year cycle that always drives new surges in Bitcoin's price. If you consider the current widespread adoption, you'll also be able to see how Bitcoin's market capitalization could one day reach that of gold and silver. Bitcoin is quite speculative in the short term, but have you ever considered the overall long-term growth of its value? I also noticed you mentioned panic selling some of your bitcoins at the beginning of the year, and even if you had been patient and sold them a few months ago when the price reached its peak, it would have certainly been quite profitable for you.

I certainly believe bitcoin has value which is why I held it for 8 years. But the real question is, how many other people believe bitcoin has value? I would say not many at all. Have you ever tried to explain bitcoin to a friend or family member? Good luck with that. I know a lot of people and from my experience it is rare to find someone who has any real interest in bitcoin. When I try to explain what bitcoin is to someone, they usually look at me like I'm crazy, so I gave up trying long ago. If you have to give a long explanation as to why something has value, then you have already lost. I know why bitcoin has value, but trying to explain it to others is a whole different can of beans. Even for me it took months if not years for me to really understand the value proposition of bitcoin. It is not something that can be easily explained or understood by the average person. From that experience alone I realized bitcoin is a niche market at best with limited potential. Unfortunately, many people still think of bitcoin as a scam used by criminals if they think of it at all so there is still a big negative public perception that has yet to be overcome. Another big problem is many countries in the world still do not view bitcoin very favorably, especially China and India. Being shut out of two of the biggest consumer markets in the world is a massive disadvantage for bitcoin.

I would have to accept that not many people know Bitcoin. We discussed investing in different assets in a forum and we were asked to present our views. When I brought up Bitcoin, most of them thought I wanted to scam them. I was surprised that some enlightened people see the crypto space as a scam. I wouldn't blame them for this because some don't have interest, while others might have been victims of a crypto scam. I also blame them because they could have easily read about Bitcoin to know the truth. But we know Bitcoin is not a currency solely created to facilitate crime; it's just propaganda. The majority of people I know who own Bitcoin are not into criminal activities.  Bitcoin is a new invention and it will be wrong to compare its popularity to that of gold or silver. Bitcoin awareness is growing in most countries. It might not be as fast as we expected but more countries are opening up. China and India might not be friendly, but the US is not doing badly.

I myself have also expressed my fair share of suspicion of Bitcoin's market cap reaching gold's. That may happen but not within the foreseeable future. Anyway, is this your honest view or you're just somewhat discouraged by Bitcoin's technical development progress right now? Do you seriously believe that "there is no market for bitcoin beyond speculation or investment"? Whatever happened to peer-to-peer, decentralized, immutable, borderless, trustless, censorship-resistant, seizure-resistant, and so on? Are you of the opinion that there's nobody who's into Bitcoin because of these features and not of its coin's potential to increase in fiat equivalent?

If you believe bitcoin will surpass gold, can you tell me what data and basis makes you believe that will happen? Not just you, I really want to hear people who believe bitcoin will surpass gold share their reasons, not just empty words, baseless expectations. Because I agree with OP's point, bitcoin will not be able to surpass gold in terms of capitalization no matter how big its potential is. For bitcoin to surpass gold, the demand for it needs to be greater than gold. How can a speculative asset, which has never experienced any economic crisis or world war, win the trust of mankind and replace the role of gold in this world? This is not as easy as you think, because it is easier said than done.

The main thing, why i don`t believe in BTC is that it is uncontrolled money. No one country will allow anybody use and print another money. The same time, for mass adoption it must be able to use in everyday operations - buy coffee, bread, pay taxi, etc. But BTC must be totally legalized for such operations - all sellers have to pay taxes and they have to convert BTC in fiat money.

So you thought what makes the price of gold very expensive is because it is also used in the manufacture of jewelries and other things? People are using this to deceive themselves. If banks and people stop accumulating gold today and it can only be used for industrial purposes, gold price will probably drop more than 10 times. People are also buying gold for no purpose than speculation as they see gold as a store of value.

OP you have spoken how you see things from your own perspective which is cool, but I will advise you don't follow hype, because with the way you expressed yourself on this your thread it shows that you are following hype, you only listing to what people are saying without doing your own research to know the asset that will be good for you to invest on, which I'm very disappointed at you. because considering the years you have spent in this forum I don't expect you to say shits like this, but it is already clear that you have learnt nothing. and am beginning to believe that you chose gold and other metals over Bitcoin currently, just because someone brain washed you, and that's the truth. normally gold is well established than Bitcoin, and I can't argue with you where you said that gold, and other metals due perform well even  in high economic instability, because they are in high demand. But even as that I will still choose to invest in Bitcoin than to invest in gold, why because Bitcoin is not just an asset, Bitcoin is money, digital money which you can use it to pay for goods and services. And secondly Bitcoin is also a safe heaven for storing our wealth.

Orrrrr the additional fees would be going to the govs through regulations in BTC itself, which would be more natural and better, imo than to convert coins back into fiat

Do you regularly use bitcoin for payments or have you ever used it as currency? I don't think many of us do this often or really want to do this. Most people do not want to spend their bitcoins but only consider them an investment asset. The reason we invested in bitcoin instead of gold is because we believe it has the potential to give better returns than gold. It can make us rich, not because of the other utilities of bitcoin. Not many people really care about the utility, use cases of bitcoin as they say. By the way, gold is also a safe heaven to store our wealth and our grandparents have been doing so for hundreds of years, not just bitcoin.