Topic: Bitcoin vs. Gold - page 3. (Read 435 times)

from Roger Ver:
https://twitter.com/rogerkver/status/939916815563739137

Saying that bitcoin will not be useful as a store of value since will be supplanted by other crypto that has more use.

Bitcoin is NOT gold. You can all talk about how both have a limited supplz but here's news. Gold is actually limited phisically, bitcoin on the other hand is a bunch of code that could potentially be simply started again with the same code from scratch. Bitcoin is trully limited just because of faith people put in it and is not actually limited in my view, whereas gold is.

As I have written many times, both bitcoin and gold are a store of value and scarce. Gold has the advantage of having a much longer history and lately has been less volatile. While revolutionary, bitcoin has plenty of maturing to do as an investment.

Yes, THIS, is the real truth. They all have the same function, only that if you are investing in bitcoin you have a little risk, you can just lose all your funds in a night (no one wants to see it happening of course)


No one is talking about luxury in here, the OP is just comparing the good sides of bitcoin and gold, in fact, they have the same function.


anyway, i have always dreamed about having dozens of gold bars on my room.. i hope that it can be done in a few years, but i am just joking.

I could see that as small niche.

The problem with that is you don't have control of the gold, it has to be insured, it has to have storage cost. So theoretically, say gold stayed $1,000 and never moved, eventually that contract aka your gold would be worth $0 due to years of fees. Costs lots of money to store physical gold and insure it.  

But that could be a great stable payment system/coin. Low volatility and not meant for store of value but 1 year or less type thing. aka checking account.

yes, I agree with you that bitcoin is just a store of value, I think gold is the same. the difference is that gold is real and become a valuable item in the eyes of society.
the value of gold with bitcoin certainly larger bitcoin, but from the side of luxury may be more dominating gold. I can buy hundreds of grams of gold with just 1 bitcoin, but gold can buy 1 bitcoin with hundreds of grams.
both have a period where it will be exhausted. and nothing else, so the day I prefer bitcoin to invest

But this can be easily done with gold, and people are working on it now:
https://digix.global/dgd/

So in the near future there will be the ability to send gold over the internet in 10 minutes and it is divisible.

Store of value:

If BTC is accepted by the world as store of value then price will settle into a much tighter non-volatile range. This would be around $200K or so USD.

That has to happen 1st.

By that time who knows if they figured out how to use BTC core for transactions. Let's hypothetically say they don't but with lightning, 1,000 alt coins, etc, the block time for transactions are 10 minutes to the T.

I think BTC core would work better than gold as a store of value on the simple principle its divisible and can travel over the internet in 10 minutes vs. gold.

I think BTC can replaced your savings account. You withdraw from savings account 0-6 times a month.

Think of BTC as a bank/ATM in modern day. Your at lunch with friends. You go to pay "short, I don't have any cash (BTC in the future) it takes 10-30 minutes to go find an ATM. This will be the same time to transfer BTC to your friend or whoever lent you the cash for lunch.

Also, when you withdraw $20 from your ATM, your account doesn't actually have paper $20 bill in it. It has 1's and 0's. And the ATM spits out fiat and reduces your balance.


So going back to BTC as savings account to store value, when you withdraw your $20 in BTC, maybe it spits out ether, xyz coin as that xyz coin will be the cash part. (and all done via phone but just painting picture)

I can see BTC as store of value/savings account, and you convert it a few times a month to xyz coin.

BTC can be savings account, xyz coin can be checking.

I have heard arguments that bitcoin can function as a store of value only (eg, if it does not work out as a currency), but I am not seeing it. I am going to present a few arguments for both sides below. Please give your arguments and rationale, but also just for bitcoin vs. gold in general.

This is a self-moderated topic to prevent low quality posts.

Bitcoin
- limited supply (capped at 21,000,000). While gold also has a limited supply, the amount of extant gold is not known and the amount that will be mined per year is not known, so bitcoin has more transparency
- minimal storage cost compared to gold

Gold
- has been coveted for thousands of years.
- limited supply
- has some use (fashion, industrial)

Some people say that bitcoin is more divisible and transferrable than gold and hence advantageous, but this will easily be solved with blockchain technology - tokens can represent ownership of gold in a vault, and thus becomes secure, divisible, transferrable.

Price appreciation is not a reason for bitcoin to be a store of value, because as a store of value people are looking to preserve what they have, not make profits. And it is a backwards argument anyway, because if people are buying it because it is a store of value, then that is going to drive up the price and cannot be a reason to buy it in advance.

Given all the above, right now I do not see why anyone would want bitcoin as a store of value when gold is available and has a longer history. The only advantage bitcoin has is storage cost, which I imagine does not add significantly to the cost of gold, especially when one considers some of the other utility of gold.