Topic: I do believe that Bitcoin will be more scarce than gold - page 4. (Read 772 times)

The issue with Gold is that, any day there can be tons and tons of it discovered however will the price of Gold go down? Not exactly. Right now its VERY expensive extracting gold. Even Elon Musk said that you can get gold from Space. Which might or might not be true. However how will you exactly bring that Gold back to earth? And when you bring it to earth you need to extract it also from whatever Rock its buried under.

However its definately more in supply as Gold because the supply can actually be infinite for Gold but not Bitcoin. We have been over this in the past. its very difficult to transport large quantities of Gold while bitcoin is easier, hence why its digital gold.

Not saying that there will be more and more lost bitcoin in the process while mining the last bit of it.  Having a fixed supply does it, and makes it way more scarce than gold.



It won't be the main currency of the world due to the government opposition but would be one of the best alternatives.

This graph is interesting, however it would be even more interesting to know how big the production/extraction volume is in comparison to the currently available amount/supply.

In the case of Bitcoin, we have currently 19,1 million. The "yearly production" is currently ~328500 (6,25 * 144 * 365). This is, in 2022, around 1,71 % of the current supply.

In the case of gold, the estimations are about 187000 metric tons, 244.000 if we include still unextracted discovered underground reserves (source). So the 3.000 metric tons extracted per year make currently up between 1,2 % (including underground reserves) and 1,6 % (not including them).

I think the second number (1,6%) is more appropiate, as we could compare the unextracted gold reserves with the "unminted" ~2 million bitcoin. So it's actually quite surprising that the numbers for gold and Bitcoin are so close at this moment. Their "scarcity level", thus, is currently in the same order of magnitude.

But the big difference is that in the case of Bitcoin it is known that the scarcity will increase as the mining rewards are reduced each ~4 years. In the case of gold, everything looks like the production could even increase further, not only due to the historical graph but also new technologies being constantly found for extraction. And thus, it's indeed likely that "Bitcoin will be more scarce than gold".

(PS: Yes, of course, Bitcoin is a different asset that gold and their characteristics are different, but it is partially used for similar purposes - as "scarce" assets meaning to serve as a long-term store of value. So I think it's legitimate to compare certain aspects of them, like their "scarcity".)

Impressive!

Gotta show that to Peter Schiff.

Can’t agree with this one! The factor responsible for both gold and bitcoin is their demand. It is responsible for the increase in value of both. Bitcoin is a potential coin in the long run.

I believe bitcoins scarcity is unrelated to its price, it does not matter if bitcoin is in a winter period, or if the price is at the ATH, bitcoin is still a scarce asset, because of its fixed supply, as every 210,000 mined blocks brings it closer to the 21 million that will be mined.
Bitcoin isn't a main currency in the world now, but it is very popular right now, as popular as gold and any other currency, bitcoin is talked about everywhere, on the news and even in local communities, many might not understand it and will not use it, but it is popular and the demand is growing.

Bitcoin and Gold is different

Bitcoins have been more scarce than gold since it has been introduced to the world and bitcoins would become more scarce in the future when their price will increase tremendously and when it creates another record-breaking ATH. More likely it will become famous as gold right now one day and when it will be recognized as one of the main currencies of the world, the demands will drastically increase and might also decrease the price of gold as well.

I stand corrected, thanks for the heads up buddy...

Good day to you

My comrade, what you said is wrong, although I am a full member while you are a Sr. Member but that not withstanding I can still correct something if only I know the particular discussion. The year you provided is not correct, I believed bitcoin now is 13 years plus not 12 year. Bitcoin was created in 2008 and lunched in 3rd January, 2009. We also analys it from year it was lunched not the created year. Please made some Google search.

And also to the OP. Comparing senior man like Gold is wrong though for analysing  issues is good. To some extent I might agreed with you because gold has no limitation in quantity, gold is discovered every day, month and year but bitcoin is limited to only the 21 millions, and in this 21 millions BTC, a lot has been misplaced while the remaining amount is circulated to the few people that are interested. Now if all Countries said, they will adopt BTC for alternative method of payment, and the few BTC on the space are in the custody of the whales, there will be scarcity of bitcoin.

That's inevitable, if it ain't already the most scarce asset. At some point in the future, the inflation rate will drop to 0; perhaps even lower than that, because of lost bitcoins.

But, it's not the scarcity, alone, that's making it valuable. It's the inflation rate's predictability. With a quick gettxoutsetinfo, there are about 19,110,092 BTC. Each block increases the supply by 6.25 BTC, and a year is equivalent to about 52,500 blocks, which increase the supply by 328,125 BTC. Therefore, the annual inflation rate (of the last 52,500 blocks) is (328,125/19,110,092)*100 = ~1.71%. And I can do this for any year.

Good luck on finding another asset with such characteristic.

“Gold is just bitcoin that can't be sent over the internet.” — Edward Snowden (2022-06-11)

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Agreed.  Bitcoin and gold are both freedom-money; and aside from witty quips that are food for thought, they have quite different characteristics that complement each other.

Instead of repeating myself in yet another one of these threads, I will simply—repeat myself.

[WO] Bitcoin and gold are complementary


See also:

• PSA: If gold were illegal... (Gold WAS illegal!) (2017-12-09)

Demand and utility are way more important than scarcity.
Imagine having an item that is super scarce, but the utility of that item is zero, therefore the demand for this particular item would be zero as well.
The price of the item will be zero, and the scarcity simply won't make this item valuable. A zero that's multiplied by a million is still a zero.
Gold might be less scarce than Bitcoin, but the demand for gold is way bigger compared to the Bitcoin demand. Gold has utility, because it's being used as a raw material by many industries.
Bitcoin will be fine in the long term. I expect massive bull runs in the upcoming years. There's no need to compare Bitcoin scarcity to Gold scarcity in order to prove a point.

Bitcoin has a limit unless something surprising happens. If the Bitcoin protocol remains unchanged, the limit of Bitcoins will be reached in 2140, 118 years from now. That it, and nothing will change. With gold, you could find a hole in the world and maybe gold and no one knows many mines left in the world, you can't know. And who knows how we act in 100 years in the universe and find there possibly also materials which we can use here. Is there also gold on other planets, who will find out?

True. There are inly 21 million bitcoins in existence and most of them are lost. There are thousands of tons of gold out there. (~250k tons) Gold is way more common than bitcoin. Also mining bitcoin is harder. Bitcoin should be on the periodic table as a rare earth asset.

Lovely! That's exactly what it is! Bitcoin and gold belong to different leagues of assets. They don't have to be compared with each other. Both of these assets have different use cases. In a nutshell, it doesn't matter if bitcoin is more scarce than gold.

On and off, I am seeing a frequent comparison between bitcoin and gold which doesn't really make sense! Even if we consider both as an investment, still they ahould not be compared!

I don't even need to look at any charts to know that bitcoin will be more scarce, just the fact that there's still potentially a lot more gold still unfound on earth; and to add to that, the potential of mining gold off asteroids.

Now — bitcoin's supply(and supply emissions) is obviously already set and decided, the only question is that will there be enough demand to push up the price.

BTC doesn't have to fight gold, does it?
In fact, BTC is made to defeat fiat. Gold is something different. You can have both BTC and gold. why force yourself to choose one over another?
Gold is good. It made stunning jewelry.
BTC is good. It pays for my coffee.

You know, after reading the source link you gave, I don't think that Bitcoin will be scarcer than Gold dude. Do you know why? Because first of all it is not correct to compare Gold with Bitcoin, we all know that gold has been in the world for thousands of years and Bitcoin has existed for 13 years plus since it was created as a digital currency. And in accordance with kitco, it is also possible from 100k$-1M$ each Bitcoin in terms of value. Then it's a bit vague to say that Bitcoin will be twice as difficult compared to Gold, that's still a bit wrong, because the only basis is a speculation for my understanding and opinion.

Look at this graph image below, imagine that since 2010 the starting price of Bitcoin is less than 0.1$ that almost no one pays attention to it and as each year passes and more and more FUDs come out about Bitcoin and that FUD destroys in Bitcoin is still going on until now that I noticed that none of these things are coming true but if you look at the history of Bitcoin price has increased more and more until it has surpassed the price of Gold in the market for a thousand years of existing in this world, whereas Bitcoin has existed in this world for more than 1 decade. So, how are you saying that Bitcoin will be scarcer than Gold, when its price continues to increase in the market, and it was even said in the link that it is even possible to become 100k$ to 1M$ each bitcoin.



Referrence: https://www.buybitcoinworldwide.com/price/

You only need to have a look at the graph of gold production per year to see that Bitcoin is way more scarce than gold:



source: https://ourworldindata.org/grapher/gold-production