Topic: BITCOIN AS A DIGITAL GOLD - page 2. (Read 830 times)

Bitcoin cannot replace the value of gold since.
Gold continue to increase its value every now while bitcoin depends on the demand of its users/ investors.

But to think that gold has unlimited supply - it is a big NO because why that the price of gold increases if it has unlimited supply? Come to think the law of demand and supply and your will realize.

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But some people appreciate the value of bitcoin as gold - we can not deny that, it's their own perspective.

technically its not, since theres no way you can increase the reserve of gold. bitcoin tho allows removing the cap if consensus is reached

i am not mentioning that gold is also has unlimited cap - its timing is on way different range than 10 minutes

Wait, did you just say that the supply of gold is unlimited? Are you serious? Why would it's price be so high if the supply is unlimited? Besides, nothing on the planet Earth is unlimited. We can agree that some elements are more rare than others but none has unlimited supply.

As for Bitcoin being digital gold, I guess that time will tell if that's true or not. For now it seems that it can be digital gold because of it's limited supply and high demand which drives the price up.

Many people argue that bitcoin is digital gold not without reason. Bitcoin and gold do have a lot in common, among other things
a limited amount, obtained by mining, and is a safe haven. But I have a different opinion, in my opinion even though there are
many similarities between bitcoin and gold they are still different. So don't compare bitcoin and gold, regarding the movement of
gold and bitcoin that tends to be the same is just a coincidence. Because either bitcoin or gold still has difference, and therefore
for me bitcoin is not digital gold.

What is gold itself backed by? When you answer that question, you will grasp why bitcoin is very similar to gold and why it is backed by "something". I myself don't like comparasions like bitcoin vs gold,  though. In my opinion, it's just an attempt to explain the new technology in old terms. A car isn't just a horse running on gasoline.  The same is true for bitcoin. Bitcoin is not a gold running on blockchain. However, like I said before, they are very similar like cars and horses - both serve the same purpose - to transfer something, to transfer value. They are both scarce, they have high stock-to-flow ratio. It is not possible to highly increase supply of gold and bitcoin in response of demand - mining is very difficult and expensive in both cases.

Bitcoin being Hoard by many Holders?yeah there is a possibility that this is being a Digital gold aside from the project mentioned above to be as a Digital
 Gold because that token is far different from Bitcoin.
and also by the demand from many people now and the main reason why Bitcoin value is continuing to grow so yeah Digital gold is indeed here.


what do you mean by Replacement for gold?Gold never need to be replaced because the mining of this precious stone is unlimited and the longer
the days goes by is the more the Gold is being mined not like the Bitcoin that has limited supply so the
 value will grow more in future.

Bitcoin is a digital gold, yes it is really good thing for the positive side. It is world's first decentralized virtual currency nobody control them, this is a miracle in the electronic and human industry, demand is more and supply is less.

backed by nothing?? oof thats a bought account right here

In terms of changes it can be compared to any rare materials however would you consider gold as an investment? And there is no such thing as an investment that is too much of an trust dependent where when there's more people to invest there would be higher value. The price is frequently being driven by demand which is almost same to any product, in contradiction bitcoin loses its high value the moment a crowd started to forcibly let go of their holdings for the reason of bitcoin is more flexible in terms of transfer.

Bitcoin is not the digital gold but there's literally a project that is a digital gold:

check this: https://bitcointalksearch.org/topic/ann-gold-first-100-liquid-stablecoin-backed-by-gold-5161544

I am looking to that project for a while and I think they are the best to give if someone is asking for digital gold. They are cryptocurrency that is backed by gold and the price is sync with the price of the gold itself.

Bitcoin can't be the digital gold since bitcoin is backed by nothing! Bitcoin is just existing because of the supply and demand and that's enough for bitcoin to be called as "cryptocurrency" 

We are not sure about these Central bank digital currencies that are being discussed as of recent. And as for Bitcoin being digital gold, we can clearly see that there is no correlation between the two of them. Bitcoin is completely different and unlike fiat and others, it's backed by the trust of the community and utility? But I still look forward to growth in the cryptocurrency community.

Some people have claimed that the CBDC are going to be a competition for the decentralized cryptocurrency we know now. That's because they believe the government will try to stop the use of decentralized cryptocurrencies just to get people to start making use of their own digital currencies.

Perhaps, it would be a great idea for bitcoin to be backed by gold to make sure that the value of bitcoin will be strong enough. Though both are having similarities in characters such as scarcity, gold could not be directly compared to bitcoin but we could think of it as an alternative to the digital world. In the end, I still consider gold as more valuable when fiat money system breaks because it is tangible, and this characteristic is what makes it solely different from bitcoin.

Going back to OP:


you might want to paraphrase this to avoid plagiarism or somehow quote and state this paragraph as it is directly stated from forbes.com article

It's a good start for us to research some insights to learn and to share.

I seem to not like the idea of creating these secondary classification names for the core protocol of Bitcoin. The Bitcoin protocol has certain parameters of operation which are dynamic. And its applicability to any application is dependent on these parameters. Consider the following parameters of the Bitcoin Protocol:

• Transaction fee: dependent on the volume of transactions in the pool
• Puzzle difficulty: dependent on the hashing power of the network

These parameters are also functions themselves. But they are more complex social functions. The transaction fee is dependent on the amount of people that are transacting on the Bitcoin Blockchain and the Puzzle difficulty is game theoretically dependent on the profit per block. profit per block is dependent on the transaction fees in a generated block, block reward volume and bitcoin market price. Market price determination is a social phenomena.

To me, the core functionality of Bitcoin is the ability to validate that something happened (i.e. an Event) and everyone has consensus on this Event as truth. This all occurs without a third party authority. What that event is, could be anything. A transaction of BTC, transaction of some asset title embedded in the transaction message, etc. I think the keyword is transact.

As the parameter values for the protocol change, then the applicability of the base bitcoin protocol to certain applications will become more or less viable. So maybe in this current social context Bitcoin may function as digital storage of value.

But I propose that we imagine a time where the cost of transacting on the blockchain is so expensive that Bitcoin doesn't serve well as a storage of value. In this scenario, the transaction fees are so high, to shift the value from one place to another viably would require shifting large sums of BTC. Now, hypothetically, Bitcoin could be more suited to storing, on ledger, commitment type transactions (e.g. Countries ratifying a treaty between each other). Which interestingly enough, would only require the transaction fee amount to place the data on the blockchain and a symbolic amount to transfer between wallets.

I am not making any predictions about future use here, but just trying to demonstrate that what we believe Bitcoin will be used for is dependent on the parameter values of the bitcoin protocol, which are subject to social behavior. Social behavior is then also constrained by law, regulations, etc.


[EDIT] I would not like to downplay bitcoin's ability to participate in applications more independently of these parameters through the use of second layer protocols

Bitcoin as a replacement for gold is possible. But if you're talking about digital gold it's Xaut

It is quite a popular notion in the cryptocurrency industry that Bitcoin is the digital gold. Maybe because there is that wish/hope/pray that Bitcoin can be functioning as the gold counterpart when it comes to storing value. However, there are also people who are not convinced on this aspect. Its volatility alone may make Bitcoin not comparable to gold which has had been steady (though increasing also) for many years. Gold is considered as a safe haven while many are doubting if Bitcoin should be classified as such. Gold can be boring but Bitcoin is perennially exciting maybe right from the beginning. Whether it can be officially said that BTC is the digital gold, maybe we should reserve the answer to that question on its 20th year anniversary.

Everyone or rather a good number of people knows and will agree that Bitcoin is the digital gold. Think about it, it was tried, passed through tough phases and yet the main idea of which it was created for still stood up till today. Gold is something that is valuable and because Bitcoin is used in the digital world as well as being valuable, I will vividly call it a Digital Gold. Furthermore, for Bitcoin to be seen as the future of the crypto space means it has achieved a good level of trust, which still attributes to the fact that, it is a digital gold.

Both, digital gold and digital payment at the same time, that makes it unique compared to gold since we can't use it easily for online transaction, bitcoin is a kind of innovation that the world needed as the government are now becoming expose of their corrupt practice and the our fate might not be good if we continue to trust the government.

At least when we are investing in bitcoin and using it for digital payment, every thing is transparent, and what we need is real adoption in order to see a market stability.

Gold is regarded as a very valuable investment that has survived a bad economy over the years and maintains a steady growth beating inflation. Gold is a physical value that can be touched and physically used. But bitcoin is a virtual digital currency that can be seen but can't be touched, which is been used over the internet. My few time of stay at this market made me believe bitcoin is more profitable than gold but much more volatile than the gold as the market is still new when compared to gold and other precious metals. It's even more valuable than gold, has a quicker and a better return with less technical knowledge to buying/selling it. Hence the name digital gold.

The acceptance of the other government to the cryptocurrency is not like how they accept gold. They do not really understand how bitcoin works that is why they do not want to accept it as a part of their economy. They are afraid because they think that it will replace their main fiat money, but little did they know, it will for surely gonna boost their economy by the help of crypto.

In addition to great value, bitcoin has very little resemblance to gold. You could even say that these are completely different financial assets. When they talk about gold,  always mean, above all, its other price stability. Bitcoin in this regard is completely opposite, since it has the highest price volatility. This is a big drawback and at the same time a great advantage of cryptocurrency, as it allows traders to receive high profits in any market condition.