Topic: Bitcoin has intrinsic value like Gold but better? (Read 382 times)
How is crypto better than gold? These are completely different assets.
Gold and bitcoin can never be compared; they both have different purposes in the market .
Bitcoin is an emerging digital currency with great potential. The storage and trading of gold are inconvenient, which increases the difficulty of storage. Bitcoin exists in the network system and can be used only by keeping the private key. The transaction is particularly convenient, and it can also be traded globally. Bitcoin's global consensus has also been continuously strengthened, and people's demand for them continues to increase, and the value of Bitcoin will also increase.
If there were aliens about 1 thousand light years away, and they had viewing devices with such precision that they could look at individual people living on Earth, they probably would've seen people using gold as money. If they had the same equipment but lived 150 light years away, they would see that poeple use paper money, but it is backed by gold.
After that, if some aliens travelled to our contemporary worlds, I think they would be surprised that people are using worthless pieces of paper which have zero intrinsic value, but they can get real goods and services for these pieces of paper because the governments say these pieces of paper are worth it and enough people believe in it.
My point is that various things and mechanisms can work for money, and the same holds for the store of value: as long as people believe in it long-term, it can serve as a store of value.
After that, if some aliens travelled to our contemporary worlds, I think they would be surprised that people are using worthless pieces of paper which have zero intrinsic value, but they can get real goods and services for these pieces of paper because the governments say these pieces of paper are worth it and enough people believe in it.
My point is that various things and mechanisms can work for money, and the same holds for the store of value: as long as people believe in it long-term, it can serve as a store of value.
Bitcoin is valuable. People like to invest in Bitcoin because they see its value and begin to recognize Bitcoin. Bitcoin has realized people's freedom of wealth. Bitcoin is still decentralized. We can control our wealth without being supervised by the government, and we can also trade around the world, saving time and money. And the total number of bitcoins is fixed, and the more people who believe in it, the greater the value of bitcoins.
Gold and Bitcoin both have good use cases in their own right. We don't know how much gold there is in the world but it is clear that governments hold more gold.
Bitcoin is only held by the community, so Bitcoin's price increase will be better. Bitcoin has a very limited quantity and a large amount has been lost in the past so Bitcoin is completely scarce compared to gold.
Bitcoin is easier to exchange than gold and safer because it has good technology and circulates on blockchain and the internet.
Bitcoin is only held by the community, so Bitcoin's price increase will be better. Bitcoin has a very limited quantity and a large amount has been lost in the past so Bitcoin is completely scarce compared to gold.
Bitcoin is easier to exchange than gold and safer because it has good technology and circulates on blockchain and the internet.
Bitcoin is replacing gold on many levels that's true. BTC can also act as a medium exchange which gold cannot anymore. So bitcoin is both a currency and a store of value while gold is only a store value. Apparently bitcoin has a lot better technology than gold.
God created gold and men created bitcoin. Which one do I trust more? Of course I trust men because in this age we are clearly better than gods.
God created gold and men created bitcoin. Which one do I trust more? Of course I trust men because in this age we are clearly better than gods.
There were times that I was wondering too why Gold was considered as a store value by now I do underatand why gold is a type of an asset that flactuates over time. Same with bitcoin that was discovered not just by achieving cashless and convenience transactions but the amaziny thing is that it has a blockchain technology that can be useful in different fields.
In the future, if BTC becomes more scarce and non-inflationary, the price of BTC will certainly increase higher than the current price, as well as gold, BTC is the second gold for crypto lovers as well. like me.
all store of value things really are nothing more than a symbol proving that a bunch of limited resources (time and energy ) went into something. THAT IS what makes it valuable....humans like rare baubles ...rather that be seashells, gold coins, pieces of paper with dead president pics on them, small clear rocks(diamonds), Majic the Gathering cards, Picasso paintings , etc ....its what we do.
get it?
No bro I don't "get it" as you say. If all you are saying is true why BTC was worth $65000 in april and only $33000 today? You dare to call that a store of value? LOL get it?
Scarcity doesn't give value, take a pen, a sheet of paper and draw something. Your drawing will be unique in the universe, is it worth something yet?
The total amount of Bitcoin is fixed and is as scarce as gold. Bitcoin is an encrypted digital currency. Some regions or countries use Bitcoin as a method of trading and storage, which can be exchanged for things like gold, but Bitcoin can be operated online, which is more convenient and safe. Bitcoin also has features such as decentralization, forming a strong consensus on Bitcoin.
Gold is valuable because it's scarce like you said often times people consider gold to be a safer investment than bitcoin because while gold has worldwide value and is recognized as an asset all over the world but bitcoin is still a relatively new asset in comparison to gold hence the faith in crypto investments is not that much and moreover the legality issues are always there.The only reason I believe bitcoin is more worthy of an investment as compared to gold is that bitcoin is much more scarce because the total supply is fixed and hence the value will be much higher than gold because gold is an element found in nature, doesn't has a fixed amount of reserve and I read somewhere Musk has found some gold in space, right? These things make bitcoin more valuable than gold.
Gold played a good role in storing value in an era when technology was not so advanced, but in the current environment, Bitcoin is better than gold in playing a stored value function. Bitcoin's transportation and transaction costs, storage costs, cross-border transportation convenience, delivery time, certification, and expropriation risks are better than gold. In addition to the seemingly obvious competition between Bitcoin and gold, there is also complementarity. Gold that has been deeply integrated into human life is unlikely to go far. Cryptocurrency may just provide people with new choices, but in the long run, Bitcoin The ceiling and potential are higher than gold.
Well it's still a good role today too actually. I was reading some time ago that the whole Syrian war where people were running and fleeing across oceans and storms, they carried small pieces of gold into their clothing and even sewn into their bags and hair. I can't imagine holding a USB stick and getting it all wet and damaged across the ocean:)
Of course, there are other ways but sometimes physical gold is still playing their role for a lot of people.
The total amount of Bitcoin is fixed and is as scarce as gold. Bitcoin is an encrypted digital currency. Some regions or countries use Bitcoin as a method of trading and storage, which can be exchanged for things like gold, but Bitcoin can be operated online, which is more convenient and safe. Bitcoin also has features such as decentralization, forming a strong consensus on Bitcoin.
Gold played a good role in storing value in an era when technology was not so advanced, but in the current environment, Bitcoin is better than gold in playing a stored value function. Bitcoin's transportation and transaction costs, storage costs, cross-border transportation convenience, delivery time, certification, and expropriation risks are better than gold. In addition to the seemingly obvious competition between Bitcoin and gold, there is also complementarity. Gold that has been deeply integrated into human life is unlikely to go far. Cryptocurrency may just provide people with new choices, but in the long run, Bitcoin The ceiling and potential are higher than gold.
In fact, Bitcoin and gold have some of the same characteristics. They are separable. The transaction amount of Bitcoin can be 1 or 0.1, and so can gold. Both have stability and scarcity, and both Bitcoin and gold are decentralized. People's consensus has been formed. People believe that it is valuable and therefore valuable. Some people will say that Bitcoin is virtual, but the value of gold is not its own value. It is also the value given to it by people, and it is also the standard by which countries measure prices. Bitcoin has the same attributes as gold, but it can be free from government control.
NOTHING has intrinsic value. Value is subjective.
What good is gold for you when you are in a desert while dehydrating?
You will only understand bitcoin when you study the Austrian School of economy.
What good is gold for you when you are in a desert while dehydrating?
You will only understand bitcoin when you study the Austrian School of economy.
A very close friend of mine wrote this but he wants to remain anonymous:
Thought experiment to free your mind - concerning question above.
if you were an alien and you came to earth and saw people 's dealing with gold coins you'd think WTH is wrong with these people?
why is this shit a "store of value--something that has very little day to day practical use"...
and yet you'd see the following...
1. an entire company - big, multi billion dollar company...with many thousands of workers using very expensive machines and equip...to dig holes in the earth thousands of feet deep, dangerous nasty work...to extract a shit ton of ....rocks...
2. which are then brought to the surface and broken down into fine sand or whatever and then massive use of harsh chemicals such as mercury used to extract a few OUNCES of some yellow metal from the TONS of shit they dug up.
3. Then they'd pay guards to guard this gold...which would then be melted down into bars which then would be transported literally across the world - some turned into small coins that nobody ever even uses for transactions .
4. people would then stamp and enscribe symbols on the coin and then sell them to dealers - entirely different companies which carefully guard these coins...and sell them to...
5. Joe 6-pack...who forks over thousands of REAL useful fiat currency for ...then takes this gold coin and puts it in a dark safe for ....well, decades sometimes. And Joe feels rich...bc he has invested in this "store of value".
see how utterly crazy and impractical that is? Its physical- yes. But it does nothing, it consumed massive amount of energy discover, pull from the earth, process, ship, and ultimately sell to Joe. And before you start with the ole "but it has industrial value!" --- that clearly is not what drives the price of gold. come on. the industrial usage of gold would warrant prob something like $50/oz...the rest is due strictly to scarcity , network of acceptance as a TOKEN of value, difficult to counterfeit, fungible, sturdy, and all that jazz....but the VALUE of gold IS its acceptance as something rare and requiring tons of energy /time to produce. THAT'S ALL. Period. for example...if we discovered an absolute shit ton of new gold...say everyone dug a hole in their backyard and found 1,000 # of it...guess what? it'd no longer be dear and prized as a store of value.
Bitcoin is similar.... takes a shit ton of energy to validate, has no industrial physical purpose, is valuable solely bc of network effect plus all those same characteristics I mentioned about gold above- but improved upon. True- you cant HOLD it in your hand...but thats NOT what MAKES gold valuable...anymore than an ETF certificate or computer entry on your TD Ameritrade account showing you "own" xyz shares of gold fund, etc etc. BTC is better in many ways --- its more divisible than gold or USD ( 100M units per 1 BTC) , it can be transported to anyone on planet earth for a nominal cost within about 10 minutes, it requires no armed guards, insurance , safe, etc. It's a better unit of account, It cant be "destroyed" (sure it can be lost just as a coin can be or a $100 from your wallet), it cannot be counterfeited...and most importantly it cant be manipulated by say The Fed or some country administrator , etc. Also it cannot be inflated away...the total release schedule of BTC is public info. It never changes from its plan/program/design. It works as long as an internet exists. And yes it can be "stored off line"- requiring zero energy on the holders part.
It's valuable only bc it cant be faked , inflated, hacked, and it requires a shit ton of energy to produce.
all store of value things really are nothing more than a symbol proving that a bunch of limited resources (time and energy ) went into something. THAT IS what makes it valuable....humans like rare baubles ...rather that be seashells, gold coins, pieces of paper with dead president pics on them, small clear rocks(diamonds), Majic the Gathering cards, Picasso paintings , etc ....its what we do.
get it?
[/quotGood Idea
Thought experiment to free your mind - concerning question above.
if you were an alien and you came to earth and saw people 's dealing with gold coins you'd think WTH is wrong with these people?
why is this shit a "store of value--something that has very little day to day practical use"...and yet you'd see the following...
1. an entire company - big, multi billion dollar company...with many thousands of workers using very expensive machines and equip...to dig holes in the earth thousands of feet deep, dangerous nasty work...to extract a shit ton of ....rocks...
2. which are then brought to the surface and broken down into fine sand or whatever and then massive use of harsh chemicals such as mercury used to extract a few OUNCES of some yellow metal from the TONS of shit they dug up.
3. Then they'd pay guards to guard this gold...which would then be melted down into bars which then would be transported literally across the world - some turned into small coins that nobody ever even uses for transactions .
4. people would then stamp and enscribe symbols on the coin and then sell them to dealers - entirely different companies which carefully guard these coins...and sell them to...
5. Joe 6-pack...who forks over thousands of REAL useful fiat currency for ...then takes this gold coin and puts it in a dark safe for ....well, decades sometimes. And Joe feels rich...bc he has invested in this "store of value".
see how utterly crazy and impractical that is?
Its physical- yes. But it does nothing, it consumed massive amount of energy discover, pull from the earth, process, ship, and ultimately sell to Joe. And before you start with the ole "but it has industrial value!" --- that clearly is not what drives the price of gold. come on. the industrial usage of gold would warrant prob something like $50/oz...the rest is due strictly to scarcity , network of acceptance as a TOKEN of value, difficult to counterfeit, fungible, sturdy, and all that jazz....but the VALUE of gold IS its acceptance as something rare and requiring tons of energy /time to produce. THAT'S ALL. Period. for example...if we discovered an absolute shit ton of new gold...say everyone dug a hole in their backyard and found 1,000 # of it...guess what? it'd no longer be dear and prized as a store of value.Bitcoin is similar.... takes a shit ton of energy to validate, has no industrial physical purpose, is valuable solely bc of network effect plus all those same characteristics I mentioned about gold above- but improved upon. True- you cant HOLD it in your hand...but thats NOT what MAKES gold valuable...anymore than an ETF certificate or computer entry on your TD Ameritrade account showing you "own" xyz shares of gold fund, etc etc. BTC is better in many ways --- its more divisible than gold or USD ( 100M units per 1 BTC) , it can be transported to anyone on planet earth for a nominal cost within about 10 minutes, it requires no armed guards, insurance , safe, etc. It's a better unit of account, It cant be "destroyed" (sure it can be lost just as a coin can be or a $100 from your wallet), it cannot be counterfeited...and most importantly it cant be manipulated by say The Fed or some country administrator , etc. Also it cannot be inflated away...the total release schedule of BTC is public info. It never changes from its plan/program/design. It works as long as an internet exists. And yes it can be "stored off line"- requiring zero energy on the holders part.
It's valuable only bc it cant be faked , inflated, hacked, and it requires a shit ton of energy to produce.
all store of value things really are nothing more than a symbol proving that a bunch of limited resources (time and energy ) went into something. THAT IS what makes it valuable....humans like rare baubles ...rather that be seashells, gold coins, pieces of paper with dead president pics on them, small clear rocks(diamonds), Majic the Gathering cards, Picasso paintings , etc ....its what we do.
get it?
[/quotGood Idea
The thing that makes gold relevant even in this day and age is its considered a precious metal which has shown and held a stable value of several decades and still going strong...that's reputation and experience the banks treasure and want this going.
And honestly I think people who are more attached to gold are likely not to move to bitcoin has this might make it obsolete with time, which is why governments around the world try to slow down the adoption process
And honestly I think people who are more attached to gold are likely not to move to bitcoin has this might make it obsolete with time, which is why governments around the world try to slow down the adoption process
The best thing about bitcoin is you do not store the physical form of bitcoin than if you have gold, so you do not have to worry if people will try to steal your bitcoin. You can use a hardware wallet to store your bitcoin or use a mobile phone or other software wallets. I am sure people will not know how many bitcoins you have unless you tell them. We can avoid being the victims because we do not share with others that we have bitcoin. As long as we can hide our bitcoin, we will be safe, which is why bitcoin will have better benefits than gold. But unfortunately, people who already knew gold will not easily invest in bitcoin and need to get enlightened about bitcoin.
What has been said about bitcoin is digital gold. That is not an exaggeration. I think bitcoin is still on a mission and the chance to overtake gold is huge. Although the present is not enough, the future is possible. if the next scarcity in the next 5 years. We will see bitcoin surpass the value of gold. Both represent property, but the purpose of possession and use is different.
Jump to: