Is Bitcoin a better store of value than gold? My opinion is: YES!
Bitcoin was originally created to be used as digital currency, but the high fee structure in transactions has really hampered its ability to be widely used. Gold has had a similar story, as it can also be a sort of financial medium, however, the constantly changing prices, inconvenience of use, and difficulty in changing it into other currencies has hampered its ability to be used as an alternate currency as well.
Gold has become a safe haven asset class, and I believe that is where Bitcoin will ultimately be put as well in many investors’ portfolios. The high cost of mining gold and declining availability worldwide with each ounce mined is similar to Bitcoin mining, with the algorithm on Bitcoin to produce less in the future with more computing power, and therefore cash, required.
With all the similarities of being a primary store of value between gold and Bitcoin (arguments can be made that there are other values to them which need to be considered), the question is which one will have a price increase at a higher rate. My opinion is that it will be Bitcoin, but the answer for me is supply and demand based.
Gold is out there to be found and mined. I do believe gold will go higher as the population increases and demand goes up accordingly, as well as inflationary costs in order to mine the gold itself. These factors make it so that I do believe demand will outpace supply and current sellers, which is the formula for a price increase in gold. However, I do believe that these demand increases will be slowed down by an increase in supply due to technology advancements, as gold can be found quicker and mined more efficiently as technology gets better. I look at Bitcoin as a “buyer demand vs sellers and new Bitcoin mined” equation as well. Similar to gold, I do believe Bitcoin demand will outpace current sellers and new Bitcoin coming to the market based on the mining. Demand will increase due to more knowledge, easier/safer options to hold Bitcoin, and greater adoption by the investment community as an alternative/safe haven asset class. There are certainly risks that would make Bitcoin not get to this point allowing sellers/miners to outpace demand, such as no wide adoption by the investment community, better alternatives, legal/regulatory restrictions, market sentiment (from stories/scams), and technology advancements.
I am of the belief that Bitcoin has a future with sensible regulations that will allow for adoption into investment portfolios and that demand will continue to outpace supply at a greater rate than gold. I am not sure what the best entry point is, but averaging in seems sensible, and holding Bitcoin as a store of value expecting increasing demand should pay off for those who are willing to make the investment, though the risk is certainly higher than holding gold at this point in history.
As always, these are my opinions and you should always do you own due diligence before making investments and never invest more than you can afford to lose.
Would love to hear your thoughts!
Brian
I like what you write, btc will have greater value than gold.
The gold that is on the ground to be mined will be less of, but will increase in value
BCT is known worldwide and has gained high sales value and more and more investments in BTC instead of gold.
Gold you own will always have good value but will not be able to beat BCT in the future as the development is now
BTC has a different structure, and several will now use it to book flights, hotels, trade also ..
I want to dare to predict during this year closer to December, for us again, a big increase in BTC
I mean that, as you say, we do not invest more one can afford to lose
But I would recommend using investreeing more different coins but good coins that have substan
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I agree my friend... I think a lot of people got in to btc thinking the run would continue, but profit taking and weak hands have allowed a significant retracement. I think we will be much higher than these levels by December as well. Hopefully steem will follow suit too!
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I see it every day. People lose money on buying in at the wrong time. They wonder why. Because if it’s shooting up your probably too late. The thrill of unpredictability!!!! Have some trust and faith in things, that is if your in it for and believe in the benifit of the system. Like Steemit. I’m in it because I want to reinvest in quality. Invest, wait and you shall receive that good karma.
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Great point. Both avenues could be unpredictable. There is always a level of risk involved. So I agree and I play by the rule to never risk more than I can lose. I don’t know if there will be another sharp increase in value due to how many hands are in the pot at this point. This turmoil within the stock market plays a nice role in keeping BTC price lightly fluctuating which in turn gives me a chance to buy in nice little incremental purchases. So is it okay to burry my BTC coin in the yard with my Gold??? Don’t want any pirates looting by booty :-O hehe.
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Great post. Also regarding gold, when the price goes up the supply tends to increase as more people start mining gold. Bitcoin supply will not change with the price, it is what it is. Also bitcoin is much more transferable than gold, IE you can send fractions of bitcoins anywhere in minutes, whereas gold you have to physically send it and can't really cut a piece of it off easily. I think that may affect the ultimate prices for both stores of value as well.
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That is a great point, and makes sense that bitcoin isn’t hampered nearly as much by increasing mining when prices are higher like gold is, though there will be more people making more computations to earn the bitcoins when the price is higher. This is why you are the expert my friend!
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i own both but i like bitcoin more
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In my personal opinion, I think gold will have more value, brian.rrr, because it will always be a reserve and it is like the bitcoin that goes up or down but will always be used for currency, even the owners of the same bitcoin once they bought gold and can do it for that the mining is bigger, is my simple reason then, greetings from your fan.
@calitoo
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Honestly Bitcoin is making me a bit uncomfortable lately. I know that there are a lot of Market manipulators out there and a lot of FUD spreaders.
I think Bitcoin has so much potential to become that digital gold that we all want it to be, but it's going to have to overcome the issue of the masses.
If the masses don't fully accept it then it will never be acceptable.
I do think that we are on our way towards that goal but lately I also feel like every step forward we make gets met with another step backwards.
Maybe I'm just sour for getting in at $20,000.
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Ouch, that entry point hurts and I had a couple of high purchases as well that are quite underwater.
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I think btc will get there. Gold is still the best bet because so few people have yet to hear of bitcoin but everyone on earth knows what gold is. I do believe that BTC will over take it at some point but sometimes "if you can't touch it, it aint real". But think of how hard it is to transport gold and how easy the btc equivalent of several tons of gold is to "lug" around. That is when I think the shift will take place on a large scale.
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Even so, if we compare it with gold, it is good because gold, despite being so expensive and difficult to extract in the same way, there is a market for it, so with Bitcoin there is a market for it and, as it is cost, people like it. to have them clear is how gold is more accessible for people with money @brian.rrr
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I agree with you, I like those comparisons so as I told you I think the same gold and Bitcoin is something similar to how you explain it with its high cost but even so it is something commercial and very good, this is the future
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However, it has had a boom that has exceeded expectations, although I am not an expert, in my country, gold mining is practiced and are quite dangerous practices, because of the amount of diseases that this entails, the death rate has risen in recent years and (at least in my country) are already on alert and fewer and fewer people want to risk, as I am a defender of life, I support that the btc has more value than gold, although the btc is not accepted by many people, I take to revolutionize the economy.
Translated with www.DeepL.com/Translator
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Gold is a very different animal. Gold's primary use case is not investment, but in making of jewellery. It's expensive, it shines and has a bigger cultural significance than bitcoin has or will ever achieve. Gold is given as a gift and is used to add value to consumables. 50% of all gold mined till date has been used in jewellery making. People in middle east, russia, india & china buy & wear gold, gift it and make objects out of it (statues, tables, etc.). Bitcoin will never replace gold's allure.
The intrinsic value of gold is what gives it investment value. The fact the 50% of is an expression of luxury is what makes 40% of gold buyers treat it as an investment (the remaining 10% of gold finds its way into industries.
Bitcoin will develop as an alternative store of value but will not replace gold totally. I can't imagine anyone proposing to his/her gf/bf by giving them a diamond studded, pen drive looking bitcoin wallet. Secondly, bitcoin volatility at present is also a hindrance into bitcoin's transition into a store of value.
just my 2 cents.
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I would always prefer gold over bitcoin for a very simple reason. The question asked here is which is better for investing? Gold is an asset which can never go to zero. Bitcoin is a cryptocurrency which is not backed by any asset. The value of bitcoin can easily fluctuate south. Gold is a safe haven when it comes to uncertainties. It is still at the lows and has the potential to move up. Silver for that matter is an excellent investment.
Bitcoin is a hype. I understand the importance of Blockchain technology and I would invest in the technology, not in the products. Bitcoin is a gamble and no doubt it is surging its way up and may go higher but at the end of the day, there is no logic behind this rally.
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Appreciate your comments. There are certainly risks with Bitcoin but I do believe we will see mass adoption and it will turn into a safe haven like gold or other commodities. I like silver too!
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Greetings, it is true that bitcoin is a reserve of very good profits, but as well as it can rise can also go down in its own way and it is essential to think if in the future it will remain since many investors are simply with that, as they may arise new coins
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I am a big license and a great idea that bitcoin has advantages but it is not better that it can have a failure and it can lose its value completely, in the exchange the gold can win but the minimum is its value and it increases exponentially each time, This is my opinion, great contribution friend, greetings.
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no way bitcoin is better than gold. When you buy gold you actually have it and can hold it but bitcoin can get hacked and or stolen from you. Plus gold is something that can be used to make diffrent things unlike btc
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I think bitcoin is better than gold in the future
Because keeping the bitcoin is highly confidential and never goes away, it leaves you indoors at risk of looting, and gold has a disparity between nations. And you can not afford to take gold to other countries because it's heavy and bulky
With bitcoin you can transfer to anywhere in the world as long as you have a computer and an internet connection
I personally think gold can not be better than bitcoin and bitcoin will increase in the future
And it's a great help to the economic community in the world
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Hai @brian.rrr
good post.
hopefully btc will have a better value than gold.
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gold not chanche bitcoin is batter,gold popular but bitcoin best
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Every BTC holders must say that BTC is better but In my personal opinion.. Gold is better than BTC .. Because..
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Yes sir Bitcoin is Better Store of Value than Gold
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I also agree with you Bitcoin is Better Store of Value than Gold..
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The more I learn about Bitcoin I must agree with you on that subject. I am still new to the cryptocurrency world, but I do see the potential growth in the coming years to the point that I had to start purchasing it.
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that's indeed very wise conclusion my friend
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I guess people should wear bitcoins as ornaments replacing gold....😂
Bitcoin has huge potential i personally believe buying bitcoin now will heavily benefit us even make our investment 2.5x ....
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my thoughts..and please see a few of my posts..the ability of gold and silver to reach heights unforeseen is there..and it begins in the fall '18. I have given the reasons...Bitcoin, for example, can do the same.
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May i ask you one question?
BTC is a great store of value now. but what about the time when there will be no more bitcoin to be mined? I cannot imagine btc having much of a value in 30-40 years from now, once there will be no more miners left
or perhaps im wrong/
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I think gold is static.
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I purchased some gold coins from my national bank in 2012 and sold them off last year with 60% profit. So it's only 12% profit per year.
Bitcoin is incomparable, so you're damned right!
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Thanks for the post, upvoted! I would say BTC is a good alternative now. But gold will stay gold.
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