Not only are Bitcoin and gold incomparable, one ounce of gold is incomparable to one Bitcoin, because it's just an arbitrary amount of gold. There's no exact price of Bitcoin that will make Bitcoin more valuable than gold, because gold could be measured in any amount.
The only thing that will make Bitcoin more valuable than gold is when the market cap of Bitcoin is higher than that of gold - that will be the only way to genuinely judge that.
I think that comparisons between Bitcoin and gold encourage hoarding more than anything else because it results in Bitcoin only being regarded as a stable asset rather than as a genuine currency or as anything that can be used other than as an investment.
Topic: [2017-03-07] Mint: Bitcoin, gold and the risk of comparisons (Read 672 times)
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I would never compare Gold with bitcoin for a very simple reasons and a basic ones.
- Bitcoin is not accepted worldwide but gold is.
- Price of gold is stable and not like bitcoin
- Gold exists from decades but not bitcoin
- Gold will be present in future as well but bitcoin not sure.
- Bitcoin is not accepted worldwide but gold is.
- Price of gold is stable and not like bitcoin
- Gold exists from decades but not bitcoin
- Gold will be present in future as well but bitcoin not sure.
I like the points you made but let me differ some things here,bitcoin can be accepted worldwide as it does not have any borders but gold cannot, you cannot take gold and go shopping unless you convert that to fiat cash,and whenever you plan on selling the gold you hold you might not get the exact market value as they will deduct many things,so that debate is over.
Even the price of gold is not stable, there are variations every now and then and the market can be manipulated.
I do not want to compare gold and bitcoin as they are completely different assets.
gold and bitcoin don’t even represent the same asset class. Comparing them is not like apples and oranges (both fruit).
I couldn't agree more.I do not understand why people tend to compare a cryptocurrency with a precious metal.Correct that both are valuable and is seen as good solid investment but their comparison is unfair.
I couldn't agree more.I do not understand why people tend to compare a cryptocurrency with a precious metal.Correct that both are valuable and is seen as good solid investment but their comparison is unfair.
I would never compare Gold with bitcoin for a very simple reasons and a basic ones.
- Bitcoin is not accepted worldwide but gold is.
- Price of gold is stable and not like bitcoin
- Gold exists from decades but not bitcoin
- Gold will be present in future as well but bitcoin not sure.
- Bitcoin is not accepted worldwide but gold is.
- Price of gold is stable and not like bitcoin
- Gold exists from decades but not bitcoin
- Gold will be present in future as well but bitcoin not sure.
Bitcoin, gold and the risk of comparisons
http://www.livemint.com/Opinion/rdDFl98pN7a0owa9v29QxK/Bitcoin-gold-and-the-risk-of-comparisons.html
One simple chart is creating a lot of buzz in markets. It shows that for the first time in history, one bitcoin is worth more than one troy ounce of gold. Despite the flurry of discussion this factoid has generated, many are stupefied, not quite knowing what to do with this information or how to trade on it. Maybe it’s because they have little to do with each other.
In fact, gold and bitcoin don’t even represent the same asset class. Comparing them is not like apples and oranges (both fruit). Better said, it’s akin to comparing the prices of soybean futures and Intel stock. Many may argue that both gold and bitcoin are currencies as they can be used to purchase goods and services. Or, they may say both are commodities in that they have strict rules around meeting specified minimum standards and have associated futures and options contracts. But economics 101 argues that gold is a commodity and bitcoin and blockchain are technology.
http://www.livemint.com/Opinion/rdDFl98pN7a0owa9v29QxK/Bitcoin-gold-and-the-risk-of-comparisons.html
One simple chart is creating a lot of buzz in markets. It shows that for the first time in history, one bitcoin is worth more than one troy ounce of gold. Despite the flurry of discussion this factoid has generated, many are stupefied, not quite knowing what to do with this information or how to trade on it. Maybe it’s because they have little to do with each other.
In fact, gold and bitcoin don’t even represent the same asset class. Comparing them is not like apples and oranges (both fruit). Better said, it’s akin to comparing the prices of soybean futures and Intel stock. Many may argue that both gold and bitcoin are currencies as they can be used to purchase goods and services. Or, they may say both are commodities in that they have strict rules around meeting specified minimum standards and have associated futures and options contracts. But economics 101 argues that gold is a commodity and bitcoin and blockchain are technology.
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