I don't think Bitcoin and gold need to compete with one another, that for Bitcoin to rise gold has to collapse. I think both of them need to be on parity of each other, in this case Bitcoin to be on parity with gold. Bitcoin and gold share very much the same fundamentals, both are a store of value of deflationary nature against the inflationary fiat.
Actually gold really isn't worth as much as it is now but it really doesn't matter, people just want something that does not lose value to back against fiat. Bitcoin is the digital equivalent of gold. Just like how money evolve to being digital, mere numbers on a computerized banking system, gold too will be digitized. An that digitized gold is Bitcoin.
So why not peg Bitcoin to gold? Of course Bitcoin being a decentralized and a non-authoritative system no one can force Bitcoin to be pegged to anything but only the people who use bitcoins themselves. Can there be any other way that Bitcoin be priced at some specific value other than being dictated by the free market, that is the exchanges, which are prone to manipulation?
