Topic: Bitcoin vs. Gold Prices - page 16. (Read 2347 times)

For long-term play, there are gold ETFs, and also gold accounts in state-owned banks (such as China offers its citizens.)

The latter are really a minor form of gold standard (except that state-issued claims on gold are denominated in weight rather than currency units.)  The history of all gold standards is that they collapse as the authorities run out of the physical stuff to redeem paper claims.  And gold ETFs don't even have the state behind them!

I do think gold and Bitcoin serve similar purposes -- for savers to hedge against central bank issued money and assets based on that money.

Since the incentives for the elites are to issue a lot of fiat money, debt, and other assets, and then to inflate them away, the thesis is that non-state-issued monies like gold and Bitcoin become the store of value, over the long term.

There's a big grey area between a store of value and outright default.  Certainly, the nature of the government has a lot to do with the performance of its debt.  What applies universally is that the incentives for the elites are to maximize the debt issuance and to inflate away their debt over the long term.

The consumer price index is known to be manipulated to show lower figures over the decades.  Even if it was accurate, it would only reflect consumer price inflation, not asset price inflation which is much higher.  Consumer prices are artificially suppressed by various financial-repression measures jointly put in by the elites of the US and developing countries to prop up the dollar.  Among all the paper wealth created by central banks, governments and 'markets', eventually at least a large proportion will go into consumer price inflation, one way or another (otherwise, there would be a complete financial meltdown by debt default.)

Gold is a very expensive material at this moment but it was not as much expensive at some years ago but nowadays it is so much expensive and many people buy this thing for only secure their money because they know that it will bring profit at future and it is not a damaging thing so that there is no chance to loose anything from this thing.
On the other hand bitcoin is a online electric data and no one can use it physically. When it starts its way that time people call it shitcoin because of its facilities and price but now a days it is so much expensive and people can earn more money from it that gold and its price is going higher and higher day by day. Forasmuch both of them are fully different thing and people chooses them with different ways so that it is good to not mix them with one another but we can say without any problem that both of them are so much valuable.

Bitcoin's soaring price has earned him the status of digital gold. However, the price determined by market speculation makes it an investment that is not risk-free.
While gold, this glorious Metal spread all over the world, applies and can be traded in any country, although not created by a real figure. Gold is available in limited quantities, and this is what causes price increases over time.

Bitcoin gave almost 15x returns in 2017, while gold gave less than 10% returns to those who invested in it. But then, in 2018 (till now) bitcoin is having negative returns (30% to 40%), while gold is having a positive return.

All paper will burn.

Actually, in most cases you can't even have gold derivatives long term because they typically expire after a certain period of time. Here I refer to gold futures as well as options and likely gold ETFs too, though I'm not sure about the latter. With futures, for example, you can of course roll over the contracts for the next month, but you will have to pay a price difference which is about a few percent, so-called contango. This may not look like a big deal at first, but in real life you will be losing constantly, each month. It is like house edge in gambling if you know what I mean. This is not so much about playing against experienced professionals with deep pockets as playing against the system itself.

We don't need to compare bitcoin and the gold price because they are on the different market and it means that the bitcoin and gold is also different because bitcoin is a digital cryptocurrency or asset so we don't need to mess things up in order to look smart because if you are smart then you know that both are different but both are good asset.

These Gold vs Bitcoin topics get so bloated over time that I always neglect to look into them.

At large, I agree that with US Treasury bonds you are as safe as the government which issues them. If it gets kicked out for whatever reason, these bonds won't be worth the paper they are printed on, metaphorically speaking. Nevertheless, if we care about inflation only discarding the possibility of default by the government on their "promises", we can buy Treasury inflation-protected securities, also known as TIPS. Their principal is tied to the inflation rate, more specifically the Consumer Price Index, so with these securities you are sort of protected from inflation. It is just that most people want more than that.

Bitcoin is your future gold mine. Gold is a thing of the past. Trade is now much faster and more dynamic.

Gold is a thing that  you can hold and keep and also you can used it and it's price is becoming higher but sometimes also it fall just like Bitcoin but the difference between them is bitcoin is a crypto currency that can be kept or hold you can also trade and invest to gain more profit.

I am very much against paper gold.

In the short term, if you want to play the game against sharp, experienced professionals with deep pockets who are implicitly backed by the state-bank elites, ie bullion banks and investment banks, you're free to lose your money!

In the long run, paper gold is not worth the same amount of toilet paper (since the latter has a good use,) since there's a lot more paper than the physical gold that the paper claims it reserves for you.  Of course, this is all legal, since I'm sure the elites make sure of that.  The fine print basically says, when it comes time to win big, you don't get to win.  (That is, when conditions are such that gold really goes crazy up.)

This is like playing poker, where you invest some money in a hand that, although having only a small chance to win, will win big when things do work out.  But in the case of paper gold, it's precisely this scenario that you can't collect (or at least not collect nearly enough to justify the bet.)

Bitcoin is a cryptocurrency while gold is an assest.Bitcoin's price is very volatile while gold is stable.Investing in bitcoin is more profitable as there is a lot of fluctuation in its price.On the other hand,fluctuations in gold is very less or nil.So the profits from gold is also very less.Price of these commodities depend on the forces of demand and supply.Since demand of bitcoin is much more than gold,the prices of bitcoin is very much high than the gold.I think investing in bitcoin is for short term purposes while investing in gold is for long term purposes.

If bitcoin vs gold for long term investment. I choose gold, because bitcoin have much risk compared gold ( price still stable ) , not like bitcoin, price not stable and very fast to going up and down. But if you want to got a lot profit, you must try invest in bitcoin and then you trade bitcoin in market. I believe if you can trade, you can got a lot of profit

Well, that is the primary difference between the two. Gold is quite useful, when you want to keep your wealth stable. On the other hand, Bitcoin comes to picture, when you want to get rich. That doesn't mean that investing in gold is not profitable. If you look at the charts, then it can be found that during the last 20 years gold has given more returns than the DOW JONES.

It is a possibility, for the bitcoin to be the primary means of exchange through out the whole modern world. If that happens, it would be worth more than gold in terms of price. Bitcoin is currently more valuable because it has more profitable uses(also more interesting).

So, you're saying that gold doesn't beat inflation, not that gold doesn't beat the dollar.  (Remember, a dollar is a dollar.)  That is possible, but I would still maintain it's arguably a better inflation hedge than US government bonds, or anything else, over the long term.

US Treasury yields went steadily up over 35 years from the end of the war to about 1980.  From that (high) peak they came steadily down for another 35 years to close to zero today.  (This is one of the simplest but most telling and interesting charts, BTW.)  If you bought long-duration bonds in 1981, certainly you would have beaten inflation, at this point.

But in general, the system is designed so that you don't have any safe protection against inflation.  The entire system is designed so inflation pushes savers into risky assets like stocks, real estate and corporate debt, assets that keep the entire system afloat so the elites can continue to enjoy their wealth and power.  Thus, if US government bonds provide a shelter from inflation, it's only temporary.  (This includes gold too: gold is manipulated down most of the time so people don't use it as a safe store of value -- only when the elites lose control that gold shoots up.  So gold protects against inflation only over the long term.)

       Bitcoin is no temporary difference. Gold could also rise high as gold demand in the market began to fall and weaken, there gold entrepreneurs will be anxious if reduced sales of gold. So the gold entrepreneurs make a way for gold to be smooth to be reproduced. Price is an option for buyers where buyers can calculate the price of gold for the future. All have been determined gold and bitcoin are engaged in the field of trade. But cripto money never knows when he will go back for a very high price. Why these different looks are all clearly the same has its own price. For my savings, I chose to save with Bitcoin money than I chose gold.

Gold is no more an investment tool. People are investing more into crypto currencies, especially Bitcoin because this way they increase their capital within a short span of time and that increase is also a noticeable one. Gold is better to be used in jewelry, the purpose for which it really exists.

There were many problems with gold and crypto currencies are solution to those problems. Definitely investors are going to choose the easy way of doing matters.

Strictly speaking, the demand for physical gold is pretty resilient but let's remember that over 50% of all gold is used in jewelry today, not for investment purposes. So even if interest for gold as investment is on the wane overall, the lack of interest might not heavily affect the prices at the end of the day. On the other hand, there is a huge market of gold derivatives, which are sometimes called paper gold. Paper gold allows to increase the volatility of gold price, and those who are not looking into long-term or even life-time investments in gold can do pretty well with paper gold.