When will Bitcoin catch up with Gold in capitalization?

Vincom

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Quote from: Abiky on February 29, 2024, 10:31:56 PM

With how fast BTC's market price went up since its inception, anything's possible. My guess is that once BTC surpasses Gold in market cap, investors will ditch the latter for good. Gold will only be used for jewelry in the future, while BTC will be used as both a store of value and a currency for day-to-day payments.

It's crazy to think how something that grew out of the minds of libertarians, and cypherpunks alike, turned into something serious for mainstream use a few years later. BTC's only 15 years old and has achieved a lot within such a short amount of time. It took Gold centuries to get to the point where it is right now. Exciting times ahead for BTC holders. Cheesy

I like the optimistic thoughts and expectations about the future of BTC and the possibility that BTC cap can surpass Gold cap in the future.

BTC is a special asset and has only existed for about 15 years, our understanding of BTC is still very limited and anything can happen in the future. If BTC continues to grow well, gain investor interest and be talked about by top politicians, I believe BTC could actually surpass Gold, at some point in the future .

Perhaps it is time that humanity has accepted the use of a new currency in the internet age, and national reserves will include both BTC and Gold. I still believe that with a history of thousands of years, Gold will still have a place in the economy.

Abiky

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Quote from: odolvlobo on February 29, 2024, 01:07:30 AM

As of 2024, about 39% of the existing 212,000 metric tons, or about 82700 metric tons, of gold are held by central banks and by investors. This is the portion that Bitcoin could replace, and it is currently worth about $5.4 trillion USD.

So, a bitcoin would have to be worth about $270,000 USD in order to match gold. Actually, the number is higher because much of the gold jewelry in the world is also used as an investment.

With how fast BTC's market price went up since its inception, anything's possible. My guess is that once BTC surpasses Gold in market cap, investors will ditch the latter for good. Gold will only be used for jewelry in the future, while BTC will be used as both a store of value and a currency for day-to-day payments.

It's crazy to think how something that grew out of the minds of libertarians, and cypherpunks alike, turned into something serious for mainstream use a few years later. BTC's only 15 years old and has achieved a lot within such a short amount of time. It took Gold centuries to get to the point where it is right now. Exciting times ahead for BTC holders. Cheesy

odolvlobo

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As of 2024, about 39% of the existing 212,000 metric tons, or about 82700 metric tons, of gold are held by central banks and by investors. This is the portion that Bitcoin could replace, and it is currently worth about $5.4 trillion USD.

So, a bitcoin would have to be worth about $270,000 USD in order to match gold. Actually, the number is higher because much of the gold jewelry in the world is also used as an investment.

Abiky

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Quote from: Smack That Ace on February 26, 2024, 09:23:56 AM

How can Bitcoin improve a country's economy? Additionally, just because it offers higher returns than gold does not mean it is a better investment than gold. If it is really better than gold, why haven't many people invested in bitcoin so far and bitcoin's capitalization is only 1/10 of gold's capitalization?

In my opinion, both are good investments and have their own pros and cons. And to know which is the better investment, we need to have realistic assessments and, depending on each person's investment needs, know which is a good investment for us.

I guess that's because people aren't used to intangible money yet. They prefer investing in physical assets they can touch and hold on their own. Give it some time and you'll see BTC surpassing Gold in market cap. We're still early to the game (despite Bitcoin's recent surge in popularity). The cryptocurrency doesn't even have a large share of the global GDP. It's just starting to blossom.

There are a few things that need to be addressed before BTC can reach the world. That is limited internet access, and low on-chain transaction throughput. Once those issues are solved, Bitcoin's market dominance will be a lot higher in the future (thus surpassing Gold in market cap). Just buy, "hodl", and forget about the rest. Wink

kro55

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Quote from: thecodebear on February 27, 2024, 10:14:44 PM

It is inevitable that Bitcoin largely replaces Gold as the world's store of value asset. And of course Bitcoin is so much more because it is also a usable currency. It will likely also replace some other investments where the goal is not to generate income. There are many trillions of dollars of those sorts of investments outside of Gold, and Bitcoin will eventually take over a large chunk of them because its simply better in numerous ways.

For example, there are fancy apartment buildings in New York worth millions of dollars each that nobody lives in but are bought buy wealthy foreigners (I want to say these are popular with Russians) who want a store of value asset that is outside the reach of their government. But bitcoin would be a far better choice for numerous reasons that buying an empty apartment. Same with buying up land that isn't being rented out simply to store value. And stocks that don't pay a dividend. A good amount of this wealth will eventually flow to Bitcoin.

Bitcoin's potential market cap once it is fully mature (maybe by end of this century) is probably 3-5x Gold's current market cap. It might take like 3 decades for Bitcoin to pass Gold, but I don't think there is any doubt that it will happen, and Bitcoin will move far passed it.

Quite an optimistic and somewhat biased assessment towards bitcoin, but not surprising since we are on a forum and we are all bitcoin investors. But if evaluated fairly and for bitcoin's capitalization to surpass gold, I think it will be a very long road and not as simple as what you say. Bitcoin also has its disadvantages and it is not perfect as you say. If it truly outperforms gold and real estate in every way, why is it still considered a speculative asset with high volatility?

The capitalization of gold is more than 10 trillion dollars and that is not a small number, to overcome that is not as easy as we imagine.

btc78

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Despite bitcoin being dubbed as the digital gold, they are both distinct investments. There is a decent chance that bitcoin exceeds gold and it is only a matter of time before we see it happen. More and more people are getting into bitcoin especially now with the involvement of ETFs it might even increase the price up more.

Gold had its own time and now is bitcoin’s. Gold will always be there and I think bitcoin will be as well. It is just that in today’s modern world, bitcoin is much preferred for a lot of us.

thecodebear

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It is inevitable that Bitcoin largely replaces Gold as the world's store of value asset. And of course Bitcoin is so much more because it is also a usable currency. It will likely also replace some other investments where the goal is not to generate income. There are many trillions of dollars of those sorts of investments outside of Gold, and Bitcoin will eventually take over a large chunk of them because its simply better in numerous ways.

For example, there are fancy apartment buildings in New York worth millions of dollars each that nobody lives in but are bought buy wealthy foreigners (I want to say these are popular with Russians) who want a store of value asset that is outside the reach of their government. But bitcoin would be a far better choice for numerous reasons that buying an empty apartment. Same with buying up land that isn't being rented out simply to store value. And stocks that don't pay a dividend. A good amount of this wealth will eventually flow to Bitcoin.

Bitcoin's potential market cap once it is fully mature (maybe by end of this century) is probably 3-5x Gold's current market cap. It might take like 3 decades for Bitcoin to pass Gold, but I don't think there is any doubt that it will happen, and Bitcoin will move far passed it.

Smack That Ace

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Assalamu Alekum

Quote from: Negotiation on February 24, 2024, 01:12:50 PM

Which one is better depends on your risk tolerance investment strategy how much capital you have to use and how much you can tolerate losing. Bitcoin is better than gold It is a better investment than gold. I think BTC investment is more profitable than gold even if the price of gold increases it is linked to the country's economy but BTC investment does not affect anyone. Even though the country's economy is bad bitcoin prices continue to rise. Investing in bitcoin can improve the country's economy. The gold market is highly dependent on the performance of the cryptocurrency market.

How can Bitcoin improve a country's economy? Additionally, just because it offers higher returns than gold does not mean it is a better investment than gold. If it is really better than gold, why haven't many people invested in bitcoin so far and bitcoin's capitalization is only 1/10 of gold's capitalization?

In my opinion, both are good investments and have their own pros and cons. And to know which is the better investment, we need to have realistic assessments and, depending on each person's investment needs, know which is a good investment for us.

Abiky

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Quote from: ImThour on February 22, 2024, 11:00:14 PM

Why do we still want to fight with Gold? I don't understand it. We should be fighting with stocks and get those investors after beating them in their favorite stock. They are going to be more interested in a technology rather than those who do not know how to use a computer and are still stuck with Gold. Completely useless battle to fight.

Of course. Bitcoin can live alongside Gold for generations. There's no need to replace it. But I get that many Bitcoiners (myself included) want to fight Gold, especially when it can be confiscated by governments at will. Besides that, the "yellow metal" lacks portability. You can carry lots of money in BTC without the "bulk". Your BTC can only be confiscated if you keep it in a centralized exchange or custodial wallet.

Self-custody is the key to long-term preservation of your funds. Yet, BTC has limited transaction capacity and high volatility. You'd need to outweight the pros/cons between both assets to help determine what's best for you. The pioneer cryptocurrency went from $0 to $68k in just a few years, so it's very likely it will surpass Gold's market cap in the future. Anything's possible in crypto land, right? Grin

kentrolla

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At the present circumstances I don't think Bitcoin will breach the gold capitalization and to be honest it doesn't have to breach gold capitalization because the reason for invention of Bitcoin was to be used as a decentralized P2P transfer without third party involvement but now everyone are using it as an investment medium so it doesn't make sense comparing Bitcoin with gold and I would say we cannot compare gold with any other asset as gold has been used for centuries and will continue to be used and hold significant market share. Yes Bitcoin can cross capitalization of big orgs easily.

Negotiation

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Which one is better depends on your risk tolerance investment strategy how much capital you have to use and how much you can tolerate losing. Bitcoin is better than gold It is a better investment than gold. I think BTC investment is more profitable than gold even if the price of gold increases it is linked to the country's economy but BTC investment does not affect anyone. Even though the country's economy is bad bitcoin prices continue to rise. Investing in bitcoin can improve the country's economy. The gold market is highly dependent on the performance of the cryptocurrency market.

Zanab247

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Don't forget that gold is older than BTC and before the BTC will be coming close to such years, BTC will be more popular than gold which we can see the results in different countries that adopted BTC to enable their youths to have potential skills that will improve their progress in the country.

I have never tested gold investment and, I will never invest my money on gold because BTC investment is still more profitable than gold and I will continue to make BTC my choice because I have the skills.

Vincom

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Quote from: ImThour on February 22, 2024, 11:00:14 PM

Why do we still want to fight with Gold? I don't understand it. We should be fighting with stocks and get those investors after beating them in their favorite stock. They are going to be more interested in a technology rather than those who do not know how to use a computer and are still stuck with Gold. Completely useless battle to fight.

BTC is considered digital gold and many investors consider BTC as gold in the crypto market. The comparison of BTC to gold in terms of utility and value has always existed.

I just want to compare a bit and make a hypothesis about the possibility of BTC cap catching up with Gold cap. I don't think BTC can replace Gold, both BTC and Gold will exist together as highly valuable assets of the economy.

At this time, BTC Spot ETF is competing for cash flow with stocks in the stock market, including Gold Spot ETF Grin

Apocollapse

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Quote from: ImThour on February 22, 2024, 11:00:14 PM

Why do we still want to fight with Gold? I don't understand it. We should be fighting with stocks and get those investors after beating them in their favorite stock. They are going to be more interested in a technology rather than those who do not know how to use a computer and are still stuck with Gold. Completely useless battle to fight.

I think it doesn't like what you think, it's not really a fight, but people want to know if Bitcoin can become the most trusted asset or not because if the market cap is really high, it means people trust that asset over the others.

The real Bitcoin's enemies are fiat, banks, governments and shitcoins, while the other isn't an enemy, they're not competing or hurt Bitcoin.

peter0425

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Quote from: Vincom on February 13, 2024, 02:46:54 PM

Do you think Bitcoin has any chance of catching up and then surpassing Gold in capitalization?
If so, when in the future might that event take place?
If this happens, will it be a good thing for Bitcoin?

References:
[1] GrayScale: October 2023: Rising demand for Bitcoin as Digital Gold
[2] ‘The Bitcoin Standard’: A review
[3] Gold vs. Bitcoin: Which Is Better?
[4] Top Assets by Market Cap
[5] Bitcoin Will be Scarcer Than Gold After Halving, $500K BTC Price Predicted

Bitcoin had reached more than a trillion capitalization meaning with 13.5 trillion capitalization of Gold then we are at least a thousand percent below but with the capacity of bitcoin to increase each value each year? and also gold being mined and there are only fewer reserve under the earth ? i think bitcoin can cope up but of course will take time before happening.
I believe it can break not in this year and not in the soonest , but at least before the years double from 13 years now to 20 years atleast of celebration .

ImThour

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Bitcoin Bottom was at $15.4k

Why do we still want to fight with Gold? I don't understand it. We should be fighting with stocks and get those investors after beating them in their favorite stock. They are going to be more interested in a technology rather than those who do not know how to use a computer and are still stuck with Gold. Completely useless battle to fight.

pinggoki

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There's some articles talking about this very question and a lot of them are pretty speculatory so it's difficult to say with a certainty that they're going to be the real thing, the asking price of the articles and they all seem to say the same thing is that bitcoin needs to be priced at 700k USD if they want to see it get to that point that bitcoin's more valuable than gold. 700k USD is such a really large number and I don't think that we can ever fathom what event or situation could create such an overwhelming price increase, it's definitely a big deal whatever that situation is and if there's a speculation and hopes by many that it will reach to that, I don't think that it's a good idea to still be doubting the potential that bitcoin will ever have, bitcoin has surpassed silver already right?

Abiky

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Quote from: thecodebear on February 16, 2024, 11:32:22 PM

Please don't suggest people use silly altcoins for payments instead of Bitcoin. With LN you pay a fee once, and not even high as you suggest, like $3 maybe, and then you can transact all you want for like less than a cent per transaction. Altcoins are not even money they are just centralized tokens, so you really can't compare them to using Bitcoin. The answer to bitcoin fees being a few dollars is never "use an altcoin", but rather "use L2". Just as if someone doesn't take cash the answer isn't "use shells", but rather "use a credit card".

The fee you're going to pay will depend on how congested the Bitcoin blockchain is. It's not fixed at $3. It could be a lot higher if there's a resurgence in network activity. Altcoins (although many are centralized) are a much cheaper option than the LN (when taking into consideration paying a one-time fee on the BTC blockchain). Besides, the L2 network isn't ready for mainstream use. It's full of bugs. If the LN experiences an outage or collapses, you can say "bye-bye" to your sats for good.

Things aside, I think it's possible Bitcoin will reach Gold's market cap. Especially when a lot of prominent institutional investment firms are showing huge interest in it. I'd say we are still early to the game. Once BTC "explodes", market prices will be a lot higher than what they are right now. Perhaps, it will replace Gold in the future? Grin

thecodebear

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Quote from: Abiky on February 16, 2024, 07:38:28 PM

Quote from: NotATether on February 15, 2024, 08:05:16 AM

Why?

Bitcoin is not a corporation, despite the CEO of Bitcoin memes.

Nobody actually does anything to increase Bitcoin's valuation, except for buying and selling it.

We already have a way to deal with a highly deflated price of Bitcoin and that is the Lightning Network (and not everyone likes it, but it does the job well).

Teaching people how to use it properly will be a problem though. Especially the whole thing about adding channels before you can send or receive anything from them.

The Lightning Network "works", but you still need to pay a high on-chain fee to open/close a channel (although this is a one-time payment). It seems that you can't avoid high fees on BTC. Either wait until fees go down, or switch to an altcoin with lower network congestion. Because of Bitcoin's current state, we cannot use it as "digital cash". It's only suitable as a store of value (or "digital Gold"). Investors are now considering BTC as the most likely successor of Gold in the future.

I would've wished the majority considered BTC as the successor of existing Fiat currencies subject to corruption and manipulation. With spot Bitcoin ETFs approved by the SEC, it should only be a matter of time before the BTC surpasses Gold in market cap. The question is: Are you buying and "hodling" the coin? Cheesy

Please don't suggest people use silly altcoins for payments instead of Bitcoin. With LN you pay a fee once, and not even high as you suggest, like $3 maybe, and then you can transact all you want for like less than a cent per transaction. Altcoins are not even money they are just centralized tokens, so you really can't compare them to using Bitcoin. The answer to bitcoin fees being a few dollars is never "use an altcoin", but rather "use L2". Just as if someone doesn't take cash the answer isn't "use shells", but rather "use a credit card".

Abiky

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Quote from: NotATether on February 15, 2024, 08:05:16 AM

Why?

Bitcoin is not a corporation, despite the CEO of Bitcoin memes.

Nobody actually does anything to increase Bitcoin's valuation, except for buying and selling it.

We already have a way to deal with a highly deflated price of Bitcoin and that is the Lightning Network (and not everyone likes it, but it does the job well).

Teaching people how to use it properly will be a problem though. Especially the whole thing about adding channels before you can send or receive anything from them.

The Lightning Network "works", but you still need to pay a high on-chain fee to open/close a channel (although this is a one-time payment). It seems that you can't avoid high fees on BTC. Either wait until fees go down, or switch to an altcoin with lower network congestion. Because of Bitcoin's current state, we cannot use it as "digital cash". It's only suitable as a store of value (or "digital Gold"). Investors are now considering BTC as the most likely successor of Gold in the future.

I would've wished the majority considered BTC as the successor of existing Fiat currencies subject to corruption and manipulation. With spot Bitcoin ETFs approved by the SEC, it should only be a matter of time before the BTC surpasses Gold in market cap. The question is: Are you buying and "hodling" the coin? Cheesy

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