Topic: Bitcoin vs. Gold Prices - page 9. (Read 2319 times)

total bitcoin supply in the world is indeed limited and certainly many also become frozen balance and it makes bitcoin increasingly rare later then for gold supplai is always made and it is in terms of price will be like that

In the current business trend, I would prefer bitcoin to gold.

Right! Both have their own pros and cons but in most of the comparisons, bitcoin is having a clear edge over bitcoin. Bitcoin is able to meet the fast and high monetary demands of the market and investors which is not possible for gold to cope with. Gold has been limited to ornamental uses after the invention of this technology.  People are leaving gold market for participating into crypto market for bitcoin.

Purely, there is no harm in diversifying, but I have never really bothered myself about gold anyway and I would rather go for other investments than trying to store gold for value. It may be worth it in the long run, but I believe bitcoin and cryptocurrency investment in general have more opportunity for investors than gold. Nevertheless, this is just my own opinion and no one can absolutely know what the future holds. Now a days people prefer to diversify within cryptos rather than touching gold or shares.

To tell the truth, I'm totally serious, and I heard all these arguments, like "when you increase the effective supply of anything, you reduce the price", many times already. The problem with your reasoning, and any such reasoning in general, is that you don't take into account the gory details, which turn everything upside down. Paper gold is gold which is created on demand. That means there is no such thing as first increasing the supply and then prices going down because specifically in this case the relationship is inverse. Besides, paper gold may in fact be effectively negative as in shorts, so things get really complicated from here to assert anything conclusively.

it seems that bitcoin prices are more profitable than the price of gold because the total supply of bitcoin is currently very limited and has experienced almost the maximum limit if gold seems to have a very large total supply that makes the price less movement and difficult to gain profits.

Gold has more stable price which will in future go slowly up in the same time bitcoin has ups and downs but in future its price should be like 10x bigger than now so investing in it should bring big profit.

I would never buy paper gold.

The entire investment thesis for gold is that your government may (effectively) devalue currency against gold in a financial crisis by trying to inflate away the debt.

Unless you're a multi-decade holder, the probability of this coming true is low, on a day to day basis, especially in the developed world.  But when it does pay off, your gains are likely much better than standard investments like stocks, bonds, and deposits.

But that is the very time when your paper gold will be under the most stress and be most likely to default.

So, as I wrote before,  buying gold is like playing a hand of poker where you invest in a small chance of hitting a big hand and winning a lot.  But paper gold has a special clause that says, that is the very scenario where you can't collect!

And the same holds for Bitcoin.  But I'm willing to bet that paper Bitcoin will take off -- it's early days yet and the authorities are being careful since this new market is so full of shady dealings.

To me this is in the 'sad but true' category.  There is even less reason to buy paper Bitcoin than paper gold, since the safe storage and moving of Bitcoin is much easier, in addition to all the other, similar, issues.  But, people will pile into them.  The sad truth is that people almost seem to want to be taken by the elites, if not by swindlers as well.

I liked the your vision, maybe people want to trust Bitcoin and imagine that it will protect its value in time. Bitcoin with power and durability is similar to gold. In addition; they are similar to Bitcoin because they are usually generable.

The stock market (anti-) correlation is interesting but a short term phenomenon IMO.  In this discussion we have to look at fundamental issues.

Both gold and Bitcoin are non-state-issued money (ie unless you subscribe to the theory that the Fed secretly created Bitcoin -- but even then you have to treat it as non-state money for now, since that is how the elites want to pretend it is, and the elites still have a lot of power in this area.)

They are not subject to the perverse incentives for the politicians and (central) bankers to issue more and more for short-term benefit, and to use state power to prop up the value of the money and the other financial assets resting on top of it.

They are both free from being a liability of any entity, and they both provide ways to get around capital controls by a government, by not using the electronic money transfer systems.

Most importantly, they both represent a store of value that is free from the long-term inflationary state money system that is designed to benefit the elites but erode the wealth of savers (and do even worse to small debtors and developing countries, long term.)

Thus, even on a societal level, they provide the benefits of a more stable financial system and economy, and help reduce the long-term problems of exploitation, inequality, wars and conflicts that spring inherently from a purely debt-based money system.

Sorry, but you simply can't be serious that paper gold props up and not suppresses the price of gold.

When you increase the effective supply of anything, you reduce the price.  Simple as that.  (Unfortunately, many gold investors are still blind enough to believe paper gold equals the real thing, thus the increase in effective supply.)  The trust in paper gold is propped up by the size of institutions behind the paper, so that market is in effect a microcosm of money itself -- an elite inflated bubble, if possibly a long-term one.

People want to think of Bitcoin as a new gold. Really, everyone knows that gold is rock solid (and heart touching), so by comparing Bitcoin to gold (putting these two assets at the same level or in the same department), they feel more confident about the future of their favorite coin. In short, it gives them faith. Now that the prices of crypto have plunged dramatically, they desperately need that.

of course bitcoin prices will always increase if bitcoins have very limited availability if bitcoins have very much availability as gold is definitely a very stable price movement and will gain a little profit therefore I prefer the bitcoin that is proven to have a price movement can make you get a lot of profit.

All people want to earn money. People earn a lot of money, to earn money, a lot of trouble. Everyone wants to live their life beautifully. There is a lot of needs in everyone life, money needs to fill the needs. People invest a lot of money for the income. Talking about current time bitcoin and gold. So we have to worry, we will be benefitted a little longer in investment.

People are very much benefited by investing in gold. Gold is the best used for the decorator. Sometimes it's price decreases, but the price of most of the time increases.

Bitcoin investment is a family's extra income. Bitcoin can fulfill all kinds of dream of a man. It is price decreases. For example, bitcoin market is much lower now. Now we can invest. Maybe there will be less prices for a few more days. Bitcoin will be invested with patience. It is price increases. After 2-3 months, it is price will be very high. After many days the price will increase, the average of gold will be 3 times higher as the bitcoin investment. There is a risk to everything. So take your risk. You will benefit from investing in gold. However, you will get a lot of benefits in investing of bitcoin.

There is a prominent difference in between the prices of the gold and that of bitcoin. The market value of gold is somehow very much stable and that we haven’t experienced any significant change in the market value of the bitcoin since a long period of time. Bitcoin on the other hand has a very visible change in the market value and that its market value is increasing very much significantly.

Well, familiar question but indeed very common between peer at the bar.

If BTC is following the stock price, and gold do the opposite, how can we compare such a different things ?

I mean, they have a scarcity in common but one has been out there for thousends of years, and the other is brand new in comparison. BY comparing two thing you need a ground that at least has something in common , am I right ?

So what are we talking about ?

Maybe, because most of gold, which is still included in its market cap, is used as jewelry and not for investment purposes? Besides, something like 20% of all gold is hoarded by central banks and organizations such as the IMF. On the other hand, we shouldn't forget about the huge gold derivatives market like gold futures, options, ETF's and whatnot, while Bitcoin's derivatives market is outright pathetic and unlikely to become very popular in the future.

If gold does not attract investors then why is bitcoin only about 0.1% of golds market cap?

Yes, gold is not interested investors, bitcoin has attracted many investors. Its price fluctuates so much so many people invest in bitcoin. The return on investment in bitcoin will be more when investing in gold

At present bitcoin prices are much higher than gold. I think this is reasonable because gold is under state management and bitcoin is not. Bitcoin is a target for high profit investors. I am also investing in bitcoin.