Bitcoin Forum

Yet another money manager, the second biggest money manager in the world, admit the bitcoin might be here to stay:

BlackRock’s Chief Investment Officer Says Bitcoin Could Replace Gold to a Large Extent (https://www.coindesk.com/blackrock-exec-says-bitcoin-could-replace-gold-to-a-large-extent)


You know I have been following this phase 5 trend quite closely.
This is something getting too big for the industry to ignore.

Quite often we get hear the voice of managers and top level people describing the good with bitcoin and the associated reason. Myself too believe gold will get replaced by bitcoin, and this won't happen soon or in the near future. Bitcoin is something as a currency, whereas the gold is a precious metal that has multiple usage on different purposes starting from jewellery to medical industry.

Gold traded around the globe in comparison to bitcoin and cryptocurrencies is very huge. When bitcoin reaches a growth rate of 500% gold could experience a growth rate not more than 10% which makes it more risk free.

Certainly better than centralized "digital gold" (or physical gold represented digitally).  
Will prefer to compare Physical Gold vs some sort of Physical bitcoin. The physical bitcoin would need to do what Physical Gold can do, like lasting many years in harsh conditions without losing its physical quality, (which would qualify it as a good Store of Value in physical World) etc... to be consider good alternative to physical gold.

Why should Bitcoin replace gold though? It's not like any of them competing to each other or trying to replace each other. I just don't understand about all the people who discuss whether bitcoin gold gonna be replaced by bitcoin I mean gold is mineral and crypto is digital currency. Totally different thing and frankly the time when asset manager admits the potential of something is the time when that manager invests into that thing so just take his opinion with grain of salt although I agree with his opinion that Bitcoin or crypto is gonna be here to stay for a long time.

He's right about the logic of using gold as payment. It's one of the best assets but bitcoin seems to overtake its place having a lot of usecase such as a payment method. Actually, it's the main reason why satoshi has made bitcoin but because of its volatility became an asset later.
Signs from the institutions are coming and if bitcoin keeps rising, it's harder for them to ignore it.

Bitcoin is seldom compared to gold as it is the first digital good that has scarcity. Scarcity is a necessary condition for anything to be precious.
I do recommend reading the following thread to get a grasp for the reason:
Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity (https://bitcointalk.org/index.php?topic=5191012)

If you want to measure the success of bitcoin without the optical illusion of the failing (debasement) of the fiat system, you can actually look at bitcoin measured in gold:


https://twitter.com/100trillionusd/status/1329861535569731584?s=21

It's possible that Bitcoin could replace gold, but the one major obstacle I see is that gold cannot be stolen by somebody physically on the other side of the world. You don't go to bed in Europe one night and have the possibility that someone (somehow) managed to break into your safe from Australia. It is an extreme example where everyone knows that it is almost impossible to crack into a bitcoin wallet, but having physical gold stored does actually have a distinct difference than an online encrypted wallet that could conceivably be hacked. Just trying to play devil's advocate and think of scenarios where it isn't a like for like comparison. Ultimately I do think that Bitcoin is the equivalent of digital gold, but I'm not sure it will ever replaced gold entirely and it should be considered an extra way to diversify assets - which is a great thing anyway.

I think losing access to your gold is several orders of magnitude easier than losing access to your bitcoins.
Gold is secured by metal and security systems.
Bitcoin is secured by maths.

If you don’t do stupid things Bitcoin is almost impossible to steal.
Gold is stolen everyday, from burglary, to Bank of England refusing to give access to your gold because you are a South American Dictator (true story)

Normally, one of the reasons bitcoin is better than gold is because it is not physical and because bitcoin is more flexible, even 1 satoshi can count. I made an article earlier about what MicroStrategy CEO commented about bitcoin and gold. You can check that from the below link.

Learning from what MicroStrategy CEO Explains about Bitcoin
https://bitcointalk.org/index.php?topic=5288295.msg55564429#msg55564429

From the link, we will be able to also know that bitcoin has limited supply, unlike gold that has continuous supply, we know that supply can reduce the price of an asset, but bitcoin only have 21 million btc to be mind in total. People are getting more literate daily and knowing more about bitcoin, with the look of things, if people are finding out about this, knowing the real worth of bitcoin as a limitted supply asset, they will turn to bitcoin which could later possibly have effect on gold price.

We used to hear bitcoin will replace the banks, will do these and that but I have to agree more on this statement. Look at this way:

• bitcoin is very limited, gold its but not certain.
• financially, I will choose bitcoin and hedge my fund with it because of it immensely growth over the past years.
• With Bitcoin, your keys your funds. Unlike Gold that you have to safeguard in banks and vault to avoid been stolen.
  

Bitcoin is the future, the true and one and only freedom to financial status.

Its inevitable for these big players wont able to recognize nor be fully aware on whats bitcoin been doing on this time which everytime bitcoins price reach new heights or do make
significant price rise then these kind of sentiments do really pops out from nowhere which do came from some popular personalities and companies which a thing that it isnt surprising.
We do have all the rights to tell on whats up to our minds but i do fully disagree into that line that bitcoin could replace Gold. In what sense?
Both cant really be compared when it comes to its own key area. Digital currency wont be equal into an valuable earth nature resource.

These names are the ones who don't have money only, but a money shop which they can use to pool up and collect more money from other investors in the markets and then collectively invest in a segment which they believe, it will give them the best returns. Btc has caught the eyes of everyone when it started standing up back on its legs by growing after the crash of 2018. In the history of stocks and any assets, I hardly remember any asset which had shown same results after surviving a crash.

it's hilarious considering what their CEO larry fink was saying about bitcoin just a few years ago:



bitcoin, clearly taking the world by storm!

i'd still like to hear this straight from larry fink. he's up there with jamie dimon in terms of his influence and past skepticism about bitcoin. the "CIO of fixed income" doesn't carry quite the same authority.

Price doesnt determine success, we're higher but there is much progress before I take it that BTC is unstoppable.  Its still a developing story of what might be rather then literally waiting in the wings.    I take bankers as car salesman, they didnt make these markets but they want to be part of it because of the commision and with higher price comes a higher potential for their fees in that price so of course its now interesting to them.
   Gold and Bitcoin are quite different in their purposes and advantages and neither is wiping the other out.    Dollar is digital and quite replaceable by a number of alternatives including BTC, gold isnt nearly as big as the dollar market and not so significant.   I will take the point that BTC is considered alongside gold to a greater extent as valid in a portfolio but I think its stealing market share from dollar bonds more then gold.

He doesn't say that people will throw their gold in dumpsters if Bitcoin overtakes it, what he really means is that there's a chance that Bitcoin will become the new dominant store of value that is not some fiat currency. I personally think there's a really long road ahead if that will ever happen, Bitcoin isn't really well known to society right now, there's probably still a lot of people who never heard of it.

I do not think that bitcoin will replace gold. Gold has been a reputable asset for such a long time and it is hard for any asset to fully take it place.

But who knows? Maybe in the future, there will be a time for bitcoin to replace gold.

And these people don't give a shit about that aspect. Gold's actual usefulness makes up for a small proportion of its value. The rest is store of value, speculation and safe haven. That's where the big bucks reside.

Governments and central banks are the real players when it comes to gold. I can't ever see them replacing it with BTC. That still leaves a lot of players elsewhere.

Gentle reminder: BlackRock is not an hedge fund, it’s a money manager. This means they are not putting their own money at risk, but client’s money.
They don’t give a shit about bitcoin. But if clients ask to go long bitcoin, they will let them do so vis one of their products. Collecting a management fee, of course.

I'm not sure what value gold has to central banks, but I'm just an ignorant pleb who didn't major in economics.  I'm not even sure how important gold is to governments anymore, seeing as none of them are on a gold standard and can basically create money out of thin air at will.

As regards the CIO's statement, I do regard it as extremely bullish for bitcoin.  I don't think it's going to be as important as a store of value as gold is, but there's just so much potential in bitcoin (and crypto in general) that hasn't been tapped by big banks/governments, and I think it's only a matter of time before bitcoin becomes very scarce. 

Such is the very reason why central banks are not discarding their gold. I mean, the fiat currency is created out of thin air. It is hollow. In the deeper analysis, it is highly unstable and does not have any actual value. When fiat was backed by gold, it was more dependable. Now that it is merely backed by debt, it could crumble any time. Gold reserves still make central banks and governments feel confident and at ease. If worst comes to worst with fiat, they could always depend on gold.


The supply is fast dwindling. There are so many indicators suggesting Bitcoin's supply in the market is draining. We've just hit an all-time low of Bitcoin's supply in exchanges within the year. Bitcoin speculators are also vanishing. Many of them must have shifted to pure hodling. Dormant Bitcoins are also reaching new ATHs. These are all bullish indicators.

The time where bitcoin will replace gold will not happen, we have to be neutral about our stand so we can see the bigger picture, remember that gold is a valuable component for electronics and space technology, we all see it just as jewelry and investment but gold has a far more practical uses than bitcoin in the current time period. I do agree about the time, bloods have been spilled for gold and nations have been vying get more on their hands, I do think gold still rules behind the scenes but who knows right, bitcoin is the key that freed the masses.

Lately we haven't stopped hearing news like this, instead of hearing that bitcoin is a fraud as Jamie Dimon from JP Morgan did, and ended up buying bitcoin.

I wonder if we are in a capitulation phase in which the representatives of the centralized powers have already realized that they are not going to be able to defeat bitcoin and all they can do is join the cult.

The amount of capital in the cryptocurrency market is ten times higher than that recorded in the gold sector specialized media outlets say it has greatly increased the growth potential of bitcoin can take several years to replace gold the value of virtual currencies has risen a lot and the price of gold has risen at the same time but less than that of bitcoin. Which is driven by suspense about the outcome of the us election this has led to a re comparison between the two types of assets gold has been the mainstay for thousands of years because it is the only one in circulation in comparison bitcoin is still in its infancy  bitcoin has made significant strides towards crypto assets.

WOW...what an endorsement! He should have started his comments with "a lot of people have been telling me for years that Bitcoin's going to become a replacement for gold." Because that's a fact. That's the truth.

What the CEO of BlackRock will do instead is posture as if it was his idea, he's declaring this bold thought that he just came up with as if it's novel or new. This guy is just one of the many to show up to the party late, and the good thing is that he's bringing friends and the more people at the party, the better.

Let's all feel good that these old system dinosaurs are spending their final days at the top praising something that will far out live them and truly change the financial and investment system.

To the moon, friends, to the moon!

I think this is great news. BlackRock is the largest Asset Manager in the world, with so many different type of ETF that only good things can come from this. If a company like BlackRock who doesn't have a lot of assets in the crypto world starts to change their view on the market, it could mean the want to make new funds in  the future. First of all this likely means there will be new capital coming into the market. And secondly, Blackrock has a very good reputation that could change peoples views on bitcoins.

Well I'll take the complete opposite then, BTC can never replace gold because its nowhere close to ever being directed to do so.   Its not a failure or success, its just not an elemental metal physical object and thats great because its an advantage but also its not replacing gold what utter nonsense tbh.   Salesman rhetoric, they wanted a headline and please pay them fees but I doubt he believes it himself.   Take more away from people who are prepared to back and discuss the positives to BTC when its just halved in price and nobody thinks it will go up.



Central banks store then use gold as an asset.   It shouldn't be used because reserves should not be used up barring a war or dire reversal in fortune (like Venezuela is trying use up all asset value).   They issue promissory notes against the gold value, its either direct or indirect backing.   We dont have a gold standard so there isnt any gold backed type notes issued afaik at present but that could change in future.   The Swiss voted on such measures but declined to do so, they had fixed their exchange rate to the EURO but the ECB has lost its mind so that policy was abandoned and they now own a large part of Apple stock etc. apparently.   We live in interesting times.
   China had no gold reserves and have been net buyers for twenty years I think, they are trying to raise their level of independence in the world not just rely on dollar reserves for international trade.   Creating money out of nothing was done a couple millennia ago, its an old story to endlessly issue new currency we arent doing anything new on that count and I would not degrade BTC to just repetition.


https://www.youtube.com/watch?v=DA5spxR-5tw

No, Bitcoin and other decentralized cryptocurrencies can never replace gold.  Gold has many useful qualities that make it irreplaceable from the point of view of a means of payment, a measure of value and a store of value.  Therefore, from the depths of centuries and former earthly civilizations, we invariably have information about the use of gold, and not cryptocurrency, although some previous civilizations were even more technologically advanced than ours.

For certain places it already replaced gold anyway. There are tons of places that started to put their money into crypto already, they are using it as a reserve right now and they are already profiting from that move as well. Obviously it is not close to what it could be just yet, there are trillions of dollars difference, almost a 9 trillion dollar difference so we can't say bitcoin has replaced gold just yet, but we can say it did for some places.

This is why I think it is vitally important that we realize we do not have too much time until it does it completely, we can say it did it only a bit and it is growing bigger and bigger. So, momentum is on cryptos side and not on golds side, people do not "start" to invest into gold, they are already doing that, people however started to move away from gold to bitcoin.

Glad that more and more people are getting the basic concept behind cryptocurrencies, particularly bitcoin. Gold is a thing of the past and undoubtedly still valuable, but bitcoin has far more benefits and reachability against gold that only got is history in ancient times to back its, relevance in the market. That being said, this is but one of the million steps bitcoin wiuld take towards global adoption.

Bitcoin is good and I like it, but sometimes I don’t get where people are heading with all these Bitcoin is going to replace gold kind of statement. I don’t see these two things as a competition, I only believe that Bitcoin will get bigger someday and stand the same level with other big world assets.

Gold is in some ways different from Bitcoin, and Bitcoin also has its own ways that it’s unique, the one thing is that they are both assets and are being used as a store of value. Both will stay and serve the purpose they were meant to serve and also be used as stores for value.

i see governments as laggards, but not unchangeable. they're archaic and inefficient. they move slowly.

obviously crazy retail investors and high risk hedge funds are gonna be the early adopters of bitcoin, not governments. but think about it---if the rest of the world (institutions, elites, the masses) start ditching gold for bitcoin, you think governments are gonna wait around forever?

"replace" is a strong word. i don't wanna go too far down that rabbit hole. but i could absolutely see governments treating them similarly as reserve assets and moving towards bitcoin over time.

when rieder points out how much more functional bitcoin is than gold, he's exactly right. the bullion shortages in march and the sheer ridiculousness of flying bars of gold around and melting/recasting them to settle gold contracts showcase it. at some point, governments will wise up to bitcoin's superiority.

Glad to see more important figures getting the big idea about bitcoin. Banking figures, Government officials, and now big-time investors are trying to join the bitcoin movement and it will only be time until the world understands the true power of the coin made by Satoshi. Bitcoin has more than history to back itself unlike Gold that has history written all over it. This means that for the first time, we'll have a valuable asset that also has great applications

Regardless of how bitcoin moves, they would still continue to make money, but they will benefit more if they will keep hyping bitcoin so investors will put more money, well, he could be right with his statement, who knows, just give it a time.

It's inevitable. JPMorgan, Paypal, and those who all condemned BTC in the past as some sort of underworld currency have all now completely turned around on their previous rhetoric over the past few years.

Whether or not BTC will replace fiat is up for debate, but I echo the sentiments of BlackRock precisely. I would not be surprised whatsoever if a lot of the precious metal bugs eventually turn to BTC when they realise that the principles underlying the two assets are essentially the same - both have a hard limit and both have their currency supply decentralised away from government intervention, and both are long term store of values.

This sector is going to be a primary driver of growth in the cryptocurrency scene at large, alongside institutional adoption for sure.

Well, to be fair to them, bitcoin "was" an underworld currency that wasn't really used for investment but more for bad stuff. If you go back as further as 2013 you will see that up until silkroad was stopped, the bitcoin world was "buy whatever you want for bitcoin without getting caught" type of marketing and that is why many big companies didn't want to be part of that world and was feared that they would be condemned if they ever bought any.

However after that period ended, bitcoin went up a bit and years after that we are nearly $20k again with many big corporations going in. That doesn't mean they hated it, they just feared that they would be involved with a currency that was used for shady stuff, now that it is more professional looking I would say they do not fear the same things anymore.