Topic: When will Bitcoin catch up with Gold in capitalization? - page 2. (Read 1259 times)

The verifiability aspect is so much more important than some people understand I think. If a country is running on gold reserves as support of their fiat currency, nobody in the world can actually verify whether the gold they claim to have in storage is really there. Yes some people can get appointed and do an audit, but once you receive the audit, it is worth as much as the promise given by the government. Nobody can walk into the holy storage halls of a government and verify for themselves whether the gold is there not. But if we assume that some people could, it would still be uncertain for everyone who couldn't.

Now extend this idea of verifiability across boarders when it comes international currency trade and exchange rates. Nobody can ever know what they are trusting in. That is why countries buying currency reserves from other countries (like the Swiss Franc) mostly rely on what they can superficially see and assess. As Switzerland is mostly in the financial sector and has a sold economy, other governments buy Swiss Francs.

Bitcoin reserves and bitcoin price can be verified by everyone at every second from everywhere with the lowest key technical equipment. And if they can't do it themselves, someone in the neighborhood can do it for you without faking anything, so no trust involved. Just facts.

Bitcoin is highly liquid. The days will come when banks ask for financial solidity and will accept if someone holds bitcoin. People will be able to use it as collateral via smart contracts with banks. Would they rather take a piece of art or BTC? Of course BTC because it can be independently evaluated, is highly liquid and mobile, does not require third party trust like a notary because the blockchain can do the handling. It is all verifiable, contractual terms can't be changed retrospectively, and so on and so forth.

Verifiability is a big one!

People like to compare bitcoin and gold because bitcoin was largely designed around several of the premises of gold as sound money, yet bitcoin was designed in such a way to be even more sound money than gold with storage of value and peer to peer transaction, and bitcoin has both.  Surely, also bitcoin does not have the same kinds of third-party costs and obstacles as gold, and the fact of the matter is that many of us have likely come to understand that bitcoin is not only better than gold in a lot of aspects, and that bitcoin is likely in the ballpark of 1,000x or more better than gold in terms of various aspects of bitcoin's monetary qualities, so not only the scarcity of bitcoin, but also the verifiability, transportability, divisibility and the lack of dependency on third parties that end involving extra costs and even security issues. 

Surely there are aspects of financial sovereignty that can take place when there is authority over one's own money and value, and gold is not completely lacking in such qualities, since both gold and bitcoin are bearer instruments, but there still can be questions in regards to with whom any of us might be able to transact.

Currently, in terms of price, bitcoin is about 1/10th the market cap of gold, and so if it were to get to 1,000x gold's market cap, then that is about a 10,000x price adjustment with either bitcoin going up or gold coming down or both... and so getting to gold's parity in market cap could happen this cycle or it may take a bit of time, such as even another cycle or two (yet I have my doubts it would take a couple of cycles to reach mere parity with gold), and as others have said one thing is to reach bitcoin/gold parity, yet another thing is to sustain such parity... and then maybe getting to 10x higher than gold might not even be that difficult as compared with bitcoin potentially becoming way less volatile (relatively speaking) as compared to today when in the future bitcoin might be bouncing around and going from 10x of gold's market cap to 1,000x gold's market cap, which also could take 50-200 years to achieve.

There are likely going to continue to be battles along the way, since status quo rich probably do not appreciate their value being transferred into bitcoin, which has been happening in the past 10 years and is likely going to continue to happen at a considerably increasing rate.. the transfer of wealth from the no coiners to the coiners, and even ongoing and various confusions along the way in regards to figuring out what asset(s)/ currencies are more valuable, while at the same time people are figuring it out and are going to continue to figure out that bitcoin is the place to keep their value or to gravitate their own value into bitcoin in line with Gresham's law kinds of principles, even if most normies have no clue about what is Gresham's law, they still likely realize to spend their less valuable assets/currencies first.

Eith time it is quite likely that the value of gold and other monetized assets are going to flow (get sucked) into bitcoin, and right now the world has close to 1 quadrillion of monetized assets/currencies/commodities,^** and surely bitcoin would then have a current addressable market that is close to 1 quadrillion, since bitcoin is likely the most efficient, the best and the most sound of the monetary assets, so value is going to continue to flow into bitcoin, even though it could take 50-200 years for the fuller sense of monetization to flow into bitcoin.  

If we are referring to gradually and then suddenly, surely it can take some time for adoption and growth to continue to build and it might not even be very noticeable when the growth of bitcoin is going from its current state of less than 1% of the monetized world assets and then it gets to higher and higher levels of monetization.. since bitcoin is the most efficient and the strongest of the monetized assets/currencies, so people are going to realize that it is better to put value into bitcoin rather than other places that they had been keeping their value.

Bitcoin is not only gold 2.0.. but it is gold at about a 1,000x multiple.. people are catching on. and anyone still deluded into believing that bitcoin and gold are different or that they each have their own space or that there is some kind of a need to keep both, then sure they can have fun staying poor...It is not like I am wishing these kinds of conditions rather than just describing where the world is going in terms of bitcoin ongoingly eating gold's lunch and going to continue to eat gold's lunch, including eating the lunch of the various (multiple) other less efficient storage of value assets and monies.  If you are merely thinking about bitcoin/gold parity, then you are surely thinking small potatoes and don't even realize what bitcoin is...which is fine.. just go study it a bit more.. or buy/stack some in case it catches on.

**In 2021, Jesse Meyers had proclaimed that the total addressable market was $900 trillion, but I think that $1 quadrillion is easier to work with as a nice round number.  Here is a quote from a November 2021 Bitcoin magazine article and it has Luke Mikic's name, even though I think that the purported moon math comes from Jesse Meyers.. here it is:

>>>>"Moon Math: Bitcoin’s Total Addressable Market?
Let’s analyse just how easy it would be to send bitcoin on a meteoric rise that breaks all models. First, let’s ask ourselves: What is Bitcoin’s total addressable market (TAM)?
$12 trillion gold market
$250 trillion real estate market
$300 trillion global debt
$90 trillion global equity market
$100 trillion fiat
$100 trillion bond market ($18 trillion being negative yielding)
$1 quadrillion derivatives market
There's currently $900 trillion of total money and debt in the world when you ignore the derivatives market. Let’s move forward on the assumption that BTC is the next evolution of money and acts as a black hole that'll suck in all value (which it will), if we move onto a BTC standard."<<<<<<<

They are different products and I don't see the reason people always like comparing the two because gold is older than bitcoin and have been used for transaction even before bitcoin was invested so they see the reason why they should compare the two and if you want to even compare what investment people will choose when it comes to trust people will  definitely go for gold because they believe so much in gold just because gold have exited for long and it is usually a bar if not for the invention of the digital gold. and young people have chosen their own part which is bitcoin and just the way gold is accepted everywhere the same way that bitcoin is also accepted everywhere. they have similarities. I know majority of young people don't have business with gold and I am very sure that older people still prefer to invest in gold than in bitcoin all is because of the understanding they have.

Gold might become outdated in the future. Especially if the world transitions into the digital realm. Gold will be seen as a utility metal than a store of value. Just like what's been happening to Silver these days. Bitcoin will eventually surpass Gold's market cap due to the many benefits it provides. Besides scarcity, Bitcoin is portable, decentralized, and much harder (if not impossible) to confiscate. "Wall Street" is already heavily-invested in BTC.

With BlackRock's CEO Larry Fink showing huge interest in BTC ETFs, demand for Gold will diminish over time. Just you wait and see. There's no denying that spot BTC ETFs are better-performing than Gold ETFs. Would you imagine governments backing their currencies with BTC? It would be completely mind-blowing.

Can we just stop pretending been used over and over again. The last time I checked, Trump is Elon guy and they both like each other because those two have many in common and the most common one is lie. Elon said a lot about Tesla been this and that for Bitcoin but not even a half year before they change their mind and dump that volume on the market and then later gave some unreasonable excuses about Bitcoin and his company concerns.

Now, we are using Trump as a catalyst for growth? Like how is Trump doing that, he isn't the only person in government. Let's even assume they both most Bitcoin from the market as reserve, don't you think they are going to be the driving force for market to be pump and will control it own their own way because they wouldn't want their reserve to be toy with, US government is more smart than this.

It’s going to take a significant amount of time unless the US buys a shit load of Bitcoin as a strategic reserve or something (rumours this week Trump would do that but I need to see that to believe that). Otherwise it may take 10-15 years or more.

Looking at the growth rate of Bitcoin and the fact that it has a limited supply, for it to have come this far in a relatively short period shows that it can overtake gold in market capitalization, but I don't believe that's the goal. The goal is to be able to use Bitcoin whenever and wherever. I don't really care if the market cap or Bitcoin is 50th on the list as long as I'll be able to own, sell or use it at any time without it being a crime or a violation of any federal laws.

Gold has been here forever, so I don't expect Bitcoin to overtake its market cap that easily, plus gold is more widely accepted compared to Bitcoin. Governments have reserves in gold but are against bitcoin, so getting bitcoin to have come this far despite that, is a win. Also looking at the prices of both assets, you can see that there's a shit tone of gold in circulation for it to have that market cap, unlike bitcoin.

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.

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.

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.

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.

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.

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.

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.

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.

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?

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.

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.

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.

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