Topic: Bitcoin vs Gold vs Fiat (Read 1058 times)

Let's make an example.

If you compare which one gets moves faster, it doesn't make any sense to compare a digital entity with a physical entity.
Digital moves clearly faster than a piece of rock.
So, does it mean that Bitcoin can get exchanged faster than gold?
No

How about putting gold on the blockchain?
Let's compare Bitcoin with a gold-backed stablecoin.
Which one moves faster?
That's a question which makes sense


Divisibility
Bitcoin
Bitcoin is divisible out to 8 decimal places, which opens up the possibility for micropayments where txs can be completed for fractions of a cent.   
Gold
While gold can be divided into smaller amounts, it becomes impractical to use small specks of gold in commerce.

So, Bitcoin wins?
Of course it wins, because you consider gold only in physical form.
How about putting gold on the blockchain?


Who is faster, Peter in his car or Paul with his bicycle?
The question doesn't make any sense.
Put Paul in a car, then it makes sense.

It is unfair to compare the portability of a piece of rock with the portability of a digital currency.
If you can digitalise the ownership title to that gold, it is unfair (to gold).
As soon as you put that title on the blockchain, that gold can get bought and sold digitally, then comparing the portability of gold with the portability of Bitcoin makes sense

"It can be moved and transacted in small amounts but becomes impractical when dealing with larger values because of its weight."
So, Bitcoins is more portable than gold?
No
Bitcoin is only more portable than physical gold.
As soon as we consider gold-backed stablecoins, gold is as much portable as Bitcoin.
If I own 3 tons of gold as gold-backed stablecoins, who cares about the weight

When you compare two things, you have to consider them under the same circumstances

It all depends on the individual.   I wasn't suggesting equal parts for everyone.   Age, lifestyle, children, debt exposure, etc. are all issues.   For me, I still believe in a heavier fiat/gold/real estate foundation of 80% (roughly) and only a 10-20% in crypto (and that varies greatly, because that's the one asset that I readily flip depending on the market).   If we're being realistic, it's the only asset in the discussion that has the greatest possiblity of going up greatly OR to zero.   

There are also speed issues involved... crypto moves faster, so again, it could mean greater rewards, but it also means faster crashes.... you're much more likely to be able to adjust accordingly to market issues involving fiat, gold or real estate.   

Yes. You don't need to have a currency backed by anything. It's backed by the value it's given and by its technology. I do think investors will make a good profit if they invest now. Bitcoin can only go up.
Yes is is true that we should teach people that bitcoin is a currency not a way to make money. But the currency is strong and new and the market has opportunity ofr profit. Only invest if you believe in bitcoin tehcknology

It is smart to balance, even between all three as you suggest, but surely, such balancing would be a rare to justify equal parts. 

For example, bitcoin does the vast majority of what gold is purported to do, which is a hedge against the dollar, so having any more than 5% to 10% in gold  as compared to bitcoin would be an over investment in gold.

For someone starting to invest into bitcoin, they would likely be better situated if they establish themselves in various ways first, at least covering their fiat expenses before allocating to bitcoin, and 10% in bitcoin, as compared to fiat investments seems like a good start.. but with the passage of time, bitcoin is likely to appreciate more than fiat, and therefore it would be justifiable to allow the allow the bitcoin allocated balance to become more and more weighted towards bitcoin.... maybe cashing out a bit of fiat along the way for likely inevitable BTC volatility insurance purposes.

I think bitcoin, gold and fiat currencies have a positive side and a negative side. Each of them have advantages and disadvantages. Bitcoin can provide a huge advantage if we play actively. The more the number of bitcoins we have and if we play actively the profits we get are also getting bigger. But we must have a strategy in playing bitcoin because the price is very volatile and it is very possible that the price will drop suddenly. If the price of gold will definitely rise steadily and is very potential as an investment. The price will not fall so it is suitable for long-term investment. If the fiat currency is run centrally so the price is quite stable.

Best bet is to be balanced between all three.   "All in" on anything is gambling. 

Bitcoin Risk Adjusted Returns vs Other Assets

At the moment, Bitcoin is ahead of the rest

http://charts.woobull.com/bitcoin-risk-adjusted-return/

Yes, bitcoin now has fans and users who are increasing. for me bitcoin will continue to grow because when more and more people are interested in bitcoin it will grow the digital currency market well. indeed, each media has its advantages and disadvantages, it should be remembered that currently technology is becoming a thing that continues to grow and digital currency can be said to be the first choice in the future.

https://bitcointalksearch.org/topic/time-fiat-bitcoin-gold-5151153

Check out Bitcoin vs Gold vs Fiat vs TIME!

A country can't just ban something. There is no way to prove who holds crypto and there never will be. They will waste the courts and judges time. The judge will be annoyed for having time wasted and this little cherade will just end up costing the taxpayer and give no benefit. What will you do to people who hold bitcoin if somehow you can find out they have some? This will never happen.

Bitcoin is the digital currencies of electric cash for every country,it is the real money for the network.

Gold is an element for the chemical of the earth .it's a transition metal.

Fiar is a currency of the government, it's money that the government declares as legal tender.

I think that they will be in such a situation that Bitcoin will be banned in some countries.  Although this can only be in totalitarian countries, And all civilized countries that introduce High technologies into the daily life of their people will use Bitcoin and other cryptocurrencies.  In any case, there were already statements that the issue of cryptocurrency will be considered at the next G-20 summit.

Possibly if this happen, one is expected to leave the country that is not accepting Bitcoin  to the country that does simple. Sometime, issues that are not trivial shouldn't be. Leave the country will be the best solution mate. In my own country, Bitcoin is not legal and not illegal, so am happy holding it till when it become legal, and when it turns out to be illegal, then i wil travel to another location.

You're right! Bitcoin is a much higher level.

That was a good comparison but I already knew bitcoin will win on the way. But if I was to choose on what will I keep? It's going to be bitcoin and gold. I believe fiat has already accomplished its purpose and it's time for digital currencies to replace it just like how cable tv dethroned by the internet. In the future, the demand of bitcoin will shoot up drastically so I'm going to save more btc than gold.

I disagree. Both hold value which is why it makes sense comparing their values regardless of whether they are physical or digital in nature. Bitcoin will always be compared against its primary competitor which is FIAT basically.

This could be a problem. You sound like you are guaranteeing profit which is not possible in this extremely volatile market. We need to help people view BTC as a currency primarily in order to improve adoption rates.

Yes, we need to explain to them that bitcoin can be used as a new investment type as gold and the best is people can buy any amount of bitcoin even for the small amount. I think people will like to invest in bitcoin because they don't have to buy in large part of bitcoin. That will help them to invest in every month, and they will see that their investment will give a big profit for a long time.

For example, if you compare the transaction speed of Bitcoin vs. Gold, it doesn't make any sense to compare Bitcoin with a piece of rock.

Gold ownership can be traded physically (as a piece of rock) or digital (as a stablecoin)

It only make sense to compare digital (Bitcoin) with digital (gold-backed Stablecoin)