Bitcoin Forum

Bitcoin price is acting like it is related to the gold price. This is happening regardless of whether you or I think Bitcoin has or should have any inherent value.
Bitcoin may not be a wise store of wealth, but it is reaching and achieving Facebook-style dominating and recognition.
An even 1.0 Bitcoin to Gold Ratio was strong resistance for a long time, but now bitcoin has broken above it and the gold price may act as strong support.
Bitcoin has been acting like gold, not silver. And if bitcoin even began to move closer to the total market value of gold.

Gold is a more predictable market in which everyone knows how much gold, how much will be extracted and so on. But BTC is more prone to price jumps, and some fear because of this BTC and it's hard to accept BTC as a payment instrument because of this.

Thinking about it,
Gold value is much stable .
But it is amazing how Bitcoins move closer and closer to the total market value of gold.

Is it possible that it can exceed more than gold value ? What do you think ?

I'm thinking that bitcoin is starting to become attractive to the same class of investor as gold, for the same reasons. Unless you are a gold bug and you need the physicality to make it real, paper gold and bitcoin are way more liquidable and thus, much easier to make profit on.  Gold actually has physical utility, you can use it for products and such, yet bitcoin has a higher value. Which is absolutely insane in my opinion..

I wouldn't say it's as farfetched as you may think. This is the next evolutionary step for money.

The road to understanding Bitcoin really starts when you begin to try and wrap your head around fiat currencies.

It's one of the many eureka moments that come about if you've been involved in the space for some time.

Bitcoin is not acting like a proxy for gold because bitcoin has its own way and people are just saying that it is like acting like gold because of the price growth of bitcoin that is like gold but in fact, bitcoin has its own way why its price is keep on rising like the good development and promising features that can be used in the future by the people in the whole world.

bitcoin is not like gold, the reason why currency using gold as a guarantee because gold value is stable. And gold has limited amount.
Is bitcoin too ? you can answer that.

and that's why bitcoin has it's own way to increase or decrease the value.
a couple months ago, I remember bitcoin price at $700,- and now even more than $2000,-.

I think, it's purely about supply and demand, but the negative thing is, there is chance for someone to monopoly the price, someone or some people who have a lot bitcoin or resources.
Why I say that ? because until now, for myself, I don't even know what makes bitcoin has a value except that everybody want it.

No naming bitcoin as gold will just be a insult for bitcoin. Before people did compare it with gold but always bitcoin won against it , now bitcoin has gone way for far than gold has ever even reached , bitcoin is just bitcoin , bitcoin can be called like a new investment opportunity like estates , stock or even gold.

Yeah thats the big difference advantage and disadvantage of bitcoin to gold and gold to bitcoins.Volatility in bitcoins market is really  fast,you may lose money in just a blink of an eye due to high volatility and you may earn too.In gold that has low volatility is good for long term investment and earning

As we know today the rise in bitcoin prices could rise beyond the gold price, So the price of gold can be defeated by bitcoin so that the movement of bitcoin price increase faster than gold.

Do not let the same bitcoin insult just because naming bitcoin because of gold. Bitcoin has now moved away from the gold that has never existed,
Bitcoin can be called like the latest investment opportunities like plantations etc.

Bitcoin and Gold are two different assets classes and both are technically and fundamentally different. Gold has many other uses apart from only investment but bitcoin is good as an investment instrument. You can't make ornaments with your bitcoins.

So as an investor of bitcoin, I must say bitcoin is outplaying gold since long in terms of growth percentage since long. Gold has never given that much of return that bitcoin has given in the last year. So I don't think gold can be a good competitor to bitcoin ever. Bitcoin is great for investment while gold is good for preserving your wealth.

There is no way the price of bitcoin prices is linked with the price of gold. The good thing about gold is that it's been there since forever, stable and one can make very good predictions. Bitcoin and crypto generally is in it's infancy, and nobody knows for sure how big it will grow. I expect unprecedented price rises in the near future.

It may act the same as gold but making it as a proxy would really not be possible. They might have value but we cant really compare of a digital currency on a precious metal which is already here for how many years. We do know that gold does really have value and even bitcoin surpasses its value but still gold doesnt really be affected at all.We us people are just making comparison among these two things.

Bitcoin  now is acting like proxy of gold.That after a long time past by it become more expensive.Its not a lost if you keep it but gives you a big profit for the future.
Karrats of gold is stable but the price is increasing as time goes by.People worth it because the value of bitcoin is in a very good price same as gold.

Bitcoin is unique investment and it's has unique way to being popular by seeing bitcoin value able to compete gold's value for example
Let see that bitcoin was being made on 2010 meanwhile gold already exist for a long time but bitcoin able to chase gold's popularity

You can say that gold prices/fiat prices are connected to every other asset. It is economy, holistic theory of things is telling us that everything is connected.

I am gonna disagree, Bitcoin is great store of value. The best in recent history. You can compare currency/economic system to software/hardware.

Gold prices are arbitrary, are we talking about ounces, kilograms or other standard? In the end 1 Bitcoin will be more valuable that 1 kilogram of gold.

I don't feel any parity between Bitcoin and Gold. Gold is much-much stable as and when compared to Bitcoin. Even 2-3% gain/drop in case of Gold is big thing and matter of interest for business page of newspaper while Bitcoin's similar fluctuations are usual than anything.
Bitcoin has provided new dimensions to the definition of volatility.

Yes, we can't compare these two products. Gold is accepted by all governments and institutions as the best asset to invest money during financial uncertainty. On the other had bitcoins are just started growing up and mostly popular in gambling and some grey market dealings. And in most countries, it is not accepted and regulated as well. So even though its prices are higher than gold as of now we can't compare these two products.

Gold is a money of goverments and rich people. Bitcoin is the first serious money of the internet.
In the earth exists some gold. In the universe exists much more.
In the earth exists at the time 16,381,700 bitcoins. In the universe exists nothing more! Max. supply is fix: 21,000,000 and not more.
The gold has a weight. Bitcoin has no weight - you can hold it on a piece of papier.
Gold can't be transported with a speed of the light. Bitcoin can do it.
Gold is visible for everybody - if you hold/transfer it. Bitcoin can be protected through cryptography.
Gold can be seized by the court. If you are clever - your bitcoin can't be seized.

Your arguments are very tangible, but I would like to get an answer to the question, What to do when at some point there will be no electricity or the Internet. The world has become so dangerous that every day you can expect some kind of cataclysms or even a warrior. And then what to do when high technologies can come to an end.

Bitcoin is money for Internet. Internet was planned to survive a war or a cataclysm. I know - some resource, i.e. bitcoin will went lost in such situation. But the remaining supply will be working. What should I tell more?

At this time exists some war in our earth. If somebody want survive there - it is easier escape with a piece of papier or with an usb stick or a mobile. As refugee it is not possible to rescue 1-2 kg gold and your life also. Later - in an other country maybe, i.e. in europe - it is possible to pay with bitcoin. Buy a house, and other things.

But if our civilisation ends - no more need for gold, silver, other money, electricity or internet also - I think.

Thinking in a war like this, in the end money will be worthless, the same applies for Bitcoin, even with internet access. People will focus in primarily items for basic surviving, like food, water, clothes... And they will trade this kind of item among themselves, nobody will want Bitcoins, gold, wealth items that only deserve to show power to others.

Bitcoin, gold or any other kind of currency, asset is only useful if there is organized society, without it, everything is worthless.

It's not. There isn't an explanation for why bitcoin price went from the same as gold to double gold and now more than double. If you call that a correlation then i think i can see correlation between the price of oil and bitcoin as well lol.

And bitcoin is a store of value - in the long run there will only be this much bitcoin produced. You cannot mint bitcoin out of nothing like governments do with fiats. Thats what makes bitcoin special, its decentralization and it has a limit on the amount of coins ever existing.

Accurate! Bitcoin is a proxy to a gold. If you have more account? The more earning you have. It's just a matter of waiting. Waiting because you have to wait bitcoin with there correction or it's low key for you to purchased more and not thinking how you would earn money when your at home.

To have a correlation with another asset bitcoin has to be used to actually buy the asset. However I think that it's not that. Nobody actually buys gold with bitcoins or vice versa. Either that it's just a coincidence, or this is just false(i don't see anything that represents a completely 100% correlation between gold and bitcoin anyways).

The currency that bitcoin has a definite correlation is altcoins. This is because bitcoin acts as a gateway for people to buy into altcoins. To get into altcoins you must buy into bitcoin first. So either altcoins will have a positive or negative correlation with btc.

Like bitcoin dream we got bitcoin acting in the  middle of gold.

I really like the analogy like proxy of gold, yes bitcoin has higher value even more expensive than gold per ounce.
People could store value into both of it but most people think bitcoin is more profitable but risky and gold seems steady and stable.
In some cases, bitcoin has some advantages than gold, so yes it is like proxy  for gold. But in some countries, you can't really hand over gold to someone who pay it with bitcoin due to there are some documents about it.

BTC and gold are actually a good combination.. BTC is very volatile and gold is relatively stable. So you can have high returns while being hedged by gold, which will increase as well in case the economy goes down, in that case from the other hand, it's more likely that BTC will increase in value as well - so a better combination would be maybe equity / stocks or crypto's / equity

Bitcoin is called the gold of the internet. There is the physical gold of the real world (of course) and virtual gold online, aka Bitcoin.

When you compare gold with bitcoin is wrong. Yes, bitcoin is now more profitable than any other investment but for how long this will continue nobody knows. Gold has a physical form and therefore will always be more protected from collapse. The value of bitcoin in the hopes. If these expectations are not met, all users will lose their money without any hope of compensation.

after this information I think many bitcoiner happy and breathe because they are no longer so dizzy every time they want to buy the same btc or gold has a high selling value. So the point can be a great opportunity in searching for more profits if you can hoard them together in a short amount of time.

I can't say Bitcoin is acting like proxy for Gold because gold is in a physical form therefore the value of Gold and Bitcoin is beyond incomparable. Sure I do like Bitcoin because of how much it's value cost and how it had progressed over how many years but let's face the fact that we all don't know until when Bitcoin will be here. While Gold has been here for over how many centuries already and it's value is also progressing over the years that's why some also buys gold for investment because it's price or value is not depreciating.

When I saw bitcoin in first glance, I'm still interest on gold as my main investation
And for somehow and after some time, I find that bitcoin have a potential for a better investment compare than gold and voilaaa .. it's proven now that bitcoin value has increased significantly over 7 years , up to 400% !!

Bitcoin is acting proxy to Gold in term of international transaction. It is acting alternative to an economy driven by fiat currencies. But gold is not feasible for a transaction, so bitcoin serves to be the best alternative to it. On the other hand, increasing value of BITCOIN makes it as an investment tool also.