Bitcoin Forum

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

Neither Bitcoin or gold is rare, anyone who wishes to can purchase a Bitcoin or a fraction of it, same goes for gold. Even if it were rare, that is not where its value comes from. A product which is valued solely based on how many people can access it is a bubble and would eventually burst, similar to the tulip mania.
Both Bitcoin and gold have qualities which makes each unique and they are also quite different. The depiction of Bitcoin as the digital form of gold is just a phrase, doesn't potray similarities.

Bitcoin is Bitcoin

I agree that they both have the same nature. although the difference is no less important. where the price of gold is much more stable than bitcoin. then in terms of market demand, Gold is more diverse than Bitcoin. The reason is, there are only two uses of Bitcoin, namely for payment instruments and investment assets (speculation). Gold is actually more than just an industrial sector, both jewelry and electronic devices. then in terms of manufacture, bitcoin is made using computers and software, while gold itself is a natural resource.

Do you know a lot of stores that sell eggs or flour for gold or Bitcoin?


If you think that it's enough to qualify as digital gold, then Pokemon trading cards are also digital gold. Or World of Warcraft's currency.


People call Bitcoin digital gold, because they want to make an argument that it's a hedge against inflation. The problem is, Bitcoin is not showing any good correlation with inflation or other macroeconomic indicators, it's completely unpredictable. The main point of a hedge is to act predictably under some circumstances, and Bitcoin still can't do that.

Bitcoin, like gold, are sound investment instruments because they represent a "safe have" when traditional market turmoil arises. Money moves, and like gold bitcoin is an excellent storehouse for wealth. That is if you can stomach the volatility but I suppose with more adaption it will be seen as even safer as gold.

I agree mainly with your arguments.  One of the attributes I like with bitcoin over gold is the known total and circulating supply.  We can never really understand golds max supply as well as circulating supply.  The details are more comfortable with me knowing the parameters of all aspects with supply.  Although there are "forever lost" or burned coins, we still know the top end of those supply numbers.

And yes I can certainly use bitcoin at various places, alot more than I can gold.

I doubt these attributes are enough to explain why Bitcoin is considered to be a digital Gold. And I doubt there's really an explanation to subjective labeling of something. People may compare it to other things in the market but they chose Gold simply because of its idea of being profitable, right? Which is not valid in the first place. Gold is indeed acknowledged to be a good investment and was/is also being used in the trade of goods before or maybe up until this point into some areas. The linkage between Bitcoin and gold is "profitable investment" and "mode of payment". What makes it hard to explain is that, there are other things which are having the same "characteristics" but why Gold?

bitcoin is gold to us because it is endowed with value. Nothing more, nothing less. It doesn't have any striking capabilities given its intangibility when compared to gold, with its long history of use and value that outdate even our ancestors ancestors. The same goes for gold, hadn't we thought that gold is valuable in the first place, we wouldn't endow it with value no matter how useful it is. So what's going on here really is the paradox of value. exactly. It is profitable that's why people are into it. There's nothing too explain anymore. It's a cash cow for many of us and bitcoin, being valuable in and of itself, is also regarded and recognized as something that holds significant value. Too rare do humans endow something with a value based on their benefits to society and when we do, we jack the price down to cater to the greater public, either as an altruistic manner of giving to the greater mass or as a way to earn more customers.

I have a question for you: how can we determine gold? After all, is is just a name which human create for an object. And over a period of time, it has been raised and adopted by human as one of the most valuable asset on the world

Same thing is happening to bitcoin. We use digital gold to name bitcoin which makes it becomes even more valuable.

Because it determine as valuable digital asset which the same with gold that's why many people named it as digital gold especially these days where bitcoin gather attention and hype.

Labelling it as digital gold is for me not so important thing since we know bitcoin and gold have different use and the profitability between these two is different but many compare the two in terms of profitability and there's a lot of discussion or debates towards these so expect you cannot get the correct answer since all post here will be based on their personal opinion.

For me we can consider Bitcoin is a digital gold because of it's ability to be used even though we can't touch it typically that's why we called it digital. But in terms of it's value Bitcoin is one of the most valuable investment today, and because of the pandemic happened to us, more people are starting to adopt Bitcoin and see the potential earnings to it.

Bitcoin gold is just a name that stuck over time. It is comparable to rarity and difficulty to obtain must be the reason that they coined it that name. I do not agree with gold being limited in supply, it is just that the more we get the more it incrementally becomes difficult to obtain, there is obviously a limit in gold supply but the universe is expanding so virtually there is no limit to gold.

Bitcoin is better than gold. You can call it as digital gold or anything but at the end it is bitcoin and I think it is enough to call it as bitcoin. Why do we have to compare bitcoin with gold and try to use a fake name digital gold for bitcoin?

Bitcoin has a public ledger, a public total supply and scheduled halvings in block rewards. The Bitcoin block reward chart (https://bitcoinvisuals.com/chain-block-reward) from Bitcoin visual. Every halving, more people will hear about bitcoin and adoption will rise that result in price growth to a new era. Bitcoin Halving, Explained (https://www.coindesk.com/bitcoin-halving-explainer).

You don't know how many gold are there on our planet? No halving with gold. It is enough to not compare gold and bitcoin.

Why do people invest in gold? A secured investment with physical custody, right?. Correct me if I am wrong. Gold has provided a good ROI over years but when it comes to its supply, it is out of investors' hands. It is kinda centralized. Now if we talk about bitcoin, it has provided a better ROI? It will become more than just digital gold because of its limited supply. Once 21m BTC are mined, Hyperbitcoinization (https://medium.com/coinmonks/hyperbitcoinization-winner-takes-all-69ab59f9695f) will be a factor to make Bitcoin reach 6 figures.

The thing about Bitcoin is that everybody knows about it. If you speak to someone who has no clue about crypto currencies, he will at least have heard about Bitcoins before. It all depends on the market awareness in my opinion. The more people heard about it, the higher the value of a coin. 

Of course it is. Something that is widely demanded but scarce in supply (like gold) has high value. Something that is widely demanded but plentiful (like iron) is cheap. The reason for that is scarcity.


I'm not sure about all that. Is it actually true that Bitcoin doesn't negatively correlate to inflation? Either way, I don't see that as a requirement for people to treat BTC as an inflation hedge. I wouldn't call it completely unpredictable either, any more than stocks or gold anyway. As risk assets they are all correlated, particularly on higher time frames.

Bitcoin is indeed compared to gold, some even say that Bitcoin is Gold 2.0,
yes I myself think that Bitcoin will indeed be gold, but gold in terms of technology,
we know there are 2 worlds, the internet world and the real world,
Gold is valuable in the real world, and Bitcoin is valuable on the internet, that's what I believe.

Or we could just call it Bitcoin, and maybe call virtual/digital Gold (virtual version/representation of physical Gold) Digital Gold? I think digital/virtual gold would have to have its physical gold version or representation in physical world... so that if you have virtual ownership of the virtual gold you automatically have ownership to its physical equivalent.
The "digital gold" without physical representation could have names distinct from "Gold", probably with the name gold attached to the distinct names.
I wonder how it will sound to others if someone create a "fake" 1 Bitcoin with metal and call it 1BTC/1Bitcoin/PhysicalBitcoin and sell it for 19000. I guess they do this already. The confusions could decieve people.

The person who said something should correct his word because bitcoin is not like gold at all. Depending on yourself and the risk you can take you should choose gold or bitcoin. gold is always a safe haven and nothing can't change it there is always a huge demand for it and gold got value by itself. there are many stable coins for it. But, in the other hand, bitcoin got better situation this year and rising faster in price however surly it will fall faster as well. To be short, bitcoin and gold got two different ways.

Gold is not valuable only because humans think it's valuable. Gold is rare than other substances like Iron and steel. It's hard to find than other metals and it's shiny and easy to use. Similar things can be applied to Bitcoin as well. It's not very easy to get BTC If you do not have a lot of money and BTC is very easy to use.

 

Maybe it's not possible right now but our financial sector and e-commerce are heading towards that way and we can buy and sell other products like watches, cars, phones, etc which is also necessary for human life.
 
 

It's because bitcoin has high price or value that it's called the gold of cryptocurrency and its scarcity. In my opinion there's no specific reasoning why bitcoin is considered as digital gold at this point other than it being popular and valued high as I said earlier.
There are many who disagree with this and I think most of people are looking at bitcoin based on its value not really because any character which resembles gold. It's all about what it's worth.

I agree with this, not just Pokemon trading cards but also some valuable ingame items from different esports games right now, there are tons of items that cost hundred and thousands of dollars. Anything rare in the digital world can be considered gold if it still has the demand from the market.

Yes bitcoins value doesn't totally came from its rarity, but bitcoin being rare surely contributes to it's value even by a little percentage. Having a limited supply and high rarity will cause the people to put high demand on it and eventually price will surely go up as long as the demand from people is there.

Gold has next to unlimited supply. The world has plenty of it. It may be finite but so far it seems the earth has not yet ran out of gold. Gold has been deemed precious ever since history began but until now fresh gold is still being produced from under the earth's grounds. Bitcoin is not like that. Bitcoin has a fixed supply.

The real gold is very difficult to store. And we should be wary about buying gold in paper as we cannot do an actual verification of whether the gold that we are only buying in figures is indeed backed by genuine gold. Bitcoin is very much different. Everybody who truly owns Bitcoin can verify himself/herself his/her Bitcoin through the blockchain.

Many people in these cryptocurrencies think that Bitcoin is gold in the digital world or digital investment. and in my opinion agree with that statement Because it feels like investing in Bitcoin is the best and most secure compared to other coins in cryptocurrencies. The price of Bitcoin has also continued to increase since 10 years ago. Even now making new history with a price of $ 19,000 more.

It is too early to compete bitcoin and gold, although we as bitcoin user and know its capability to be store of value have been considered that bitcoin more useful than gold. Currently bitcoin is not a store of value only, you can make it as payment system or even the most important part you can use bitcoin as a sending money beside money fiat.

But, gold has been considered as an asset by most people on this world, there is no one who think that gold is useless and have no value. All of them will want to having it and also they will pick gold as their investment rather than bitcoin. Bitcoin still new, even just a few people in one country who know what bitcoin is and consider it has a value. Maybe it will takes a long time until most people will believe bitcoin and want to having it like gold now.

Bitcoin isn't digital gold, otherwise I could say any crypto currency with limited supply is digital gold as well.
Gold investment is safe and stable, quite the opposite of bitcoin investment which is popular for being very volatile and unpredictable. The goal of a gold investor is different from a goal of a bitcoin investor: while the first is looking for stability and store of value, the second is looking for speculative, high investment return.

bitcoin is often compare to gold thats why they label it as digital gold to make it more propriate . gold is rare because its hard to mine and price of small golds are expensive but btc isnt that rare because it can be mine easier than gold and can be found almost anywhere online.

you can do faucet to earn btc or simply buy it , you can buy even the smallest form of btc which is called satoshi . gold is also more acceptable but the rest comparison is true and verry close .

I think bitcoin is often compare to gold because of there similarities like in having a limited supply and how people accept and value both gold and bitcoin. But Gold is from the nature while bitcoin is just created by Satoshi Nakamoto and people give it special value. I think there is no problem if others can treat bitcoin as digital gold because it was true in terms of value.

What do you mean?  Because you can hold gold and not "hold" bitcoin it will only be used on the internet.  What about credit cards, they only exist in the computers here but we all use them in the real world.  You don't think bitcoin can eventually be used in the same type of pop manner?

Calling it digital gold is subjective and it depends on the person who calls it by that title. I would distinguish bitcoin as a digital gold in my own terms and belief. And if there are people who disagree calling it by that title, it's their problem and they should mind their own business. It is a fact that we're in the era where you can put assets in digital version and bitcoin is one of it. There are more that can be said as digital gold but it's just bitcoin getting attention because we're a crowd that is telling it. And those traditional "experts" can't accept it on their own terms too.

The two have a lot in common and with that I think there is nothing wrong if most people assume or say that bitcoin is digital gold. After all, both of them are equally valuable today as an investment and in fact, bitcoin can be spent because of its superiority in terms of transactions and of course it is more flexible. I think that whatever the perception is as long as it is still in the positive category it won't be a problem, because the problem is about bitcoin being associated with something negative, so it will affect bitcoin itself. So when they say bitcoin is digital gold I think it will be fine and there's nothing wrong with it because both are valuable investment assets.

The whole term "digital gold", when it's not used to talk about actual gold shares, was coined by Bitcoiners (no pun inteded), so it's not a surprise that it's very subjective and was made to fit Bitcoin's description. Which means that this title is not very useful. It even makes it pointless to argue if Bitcoin is digital gold or not, because there's no other thing that claims the title of "digital gold".

Gold is digital gold if you want it, you can buy shares in a holding of gold and never receive the metal just a part control of the commodity.   There's no need for digital anything to reinvented, dollar is digital and only in minority is there exchange of physical currency.    We have these things already, the difference of significance is that BTC is decentralised and non reversible as a transaction and couple other things maybe but mostly there's no reason to compare gold to BTC.    Many assets and commodities will rise if dollar loses value, that point isn't exclusive in comparing these two either.

The higher the price of gold becomes the greater the supply will increase, the reason being is that many locations not profitable normally then become viable.   BTC supply is strictly controlled, its far more liable to spike in that way.

Whatever you call it, one thing is for sure. It is the first cryptocurrency that was invented to change the way traditional financial and payment system works. It is beyond that of "digital gold" because aside from considering it as a store value, we can now purchase something using bitcoin.
 
 I think it is more reasonable to call it as "digital money" rather than digital gold. There is so much difference from "gold" and btc in different aspects. Though both are good for investments.

Time will come that Bitcoin will be even more valuable than Gold. Bitcoin has limited supply, and each year, mining bitcoin is getting harder and harder. The supply get really small but the demand is continuously increasing since more and more people are coming in. With popularity that Bitcoin is gaining, surely the demand will continuously increase. People are giving so much value to bitcoin, eventually, a Bitcoin could no longer be afford by a poor one. 

Bitcoin will become much more popular than gold the world needs bitcoin to improve and the digital world will become more valuable than the new digital gold bitcoin currency became the first of its kind it has every chance of becoming more original than all other cryptocurrencies. Meanwhile on all cryptocurrency exchanges all currencies are traded together with bitcoin is probably the new us dollar the demand is increasing day by day All countries in the world recognize bitcoin as a currency. Once bitcoin is recognized as a full fledged currency its exchange rate will grow rapidly this will be combined with the huge demand and the insufficient amount of coins available for sale.

Since it is the market leader Bitcoin and gold are both scarce, i think that when creating it people thought it would be worth using and when the demand was great, the value of the product was also great. Back to bitcoin, it is also seen that bitcoin is having a strong influence on crypto. When it comes to crypto, people will immediately mention bitcoin and that's the easiest reason to understand.

Very well said!

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Perhaps, what's similar between these two is that both can be used as money, sound money, because people perceive gold and Bitcoin to be valuable.

There are far more precious metals than gold, it's malleability and conductivity have enabled it to be used down through the ages for commerce, fashion and now technology.

Bitcoin on the other hand is a concept that has a few key points: The Block-Chain and the difficulty re-targeting as well as the digital signature have turned commerce on its head with many industries and commerce looking to embrace the block-chain's concept as a means to future tamper proof transactions in the here in now just to give one example.

You can't wear a bitcoin (unless it involves body paint  ;D ) and you can't snort drugs in a rolled up bitcoin either.  ;D

Being limited in supply does contribute to price rise; as demand grows with no increase in supply. But does the concept of scarcity or rarity really apply to Bitcoin and gold? Its supply is limited (for bitcoin, Gold is not but is dependent on discoveries of deposit sites) but anyone can easily purchase them at any point and it is also highly divisible, so fractions of it can get to go around.

Also limited supply does not create demand or value. The qualities in Bitcoin and gold are what is sought and that is what grows the demand, its resistance to supply shocks helps to protect its value from inflation.

Both gold and bitcoin are real assets.  The reality of gold is ensured by its physical properties.  The reality of Bitcoin is provided by an algorithm. 

Bitcoin's advantage over gold is the ease of making a transaction.  At the same time, both gold and bitcoin allow transferring large amounts from one person to another.  There is a need in the world for assets whose price will be very high.  This makes it easy to transfer large amounts of money.  This is the meaning of gold and Bitcoin. 

This is a paradox - no one needs gold and Bitcoin if their price is very low.  This will destroy their capital preservation function.

That’s for you all that call it gold, I don’t have that kind of time ::). I just call Bitcoin what it is – Bitcoin, and gold is simply gold and nothing more. And the second comment pointed out something else that I agree with, none of them are rare, they can easily be purchased; you can buy Bitcoin at any day and any minute you want, nothing stops you, the only thing is that the price you see it today will not be what you’re going to be buying it tomorrow because the price is volatile.

Then that’s the same thing with gold, gold is not rare, you can buy it anytime you want to buy, there are lots of companies to invest and buy gold from anytime you want it.

You pointed that Bitcoin is digital gold. I don't support this statement though both has some similar nature where gold price can be considered as stable and Bitcoin price isn't. Currency and a product cannot be compared within a same way. So I want to say that Bitcoin is Bitcoin which is a digital currency and gold is gold which is a valuable product only.

You can't compare digital to gold because we knew that bitcoin is bitcoin , and gold is gold and both them are both good asset but limited asset that can be use if one country are down in economy, to help it rise again, Aside from that you can go anywhere with bitcoin without any hassle unlike gold if someone knew you had gold in you maybe they will try to rob you, Both are really good when it come to asset which can be use in difficult times, and gold is really rare where only billionaire had this unlike bitcoin everyone can have it.

If you think both from investment purpose, then I must support gold which has physical value and almost the price is stable where Bitcoin price isn't stable and it is almost unpredictable. You can guess the price from support and resistance analysis. But it can be proved as wrong. You may lose or win and the process will be risky if you are going to invest in Bitcoin. Both has many similar nature. So it can be considered as digital gold maybe.

for me, Bitcoin is not digital gold because digital gold (crypto) is https://coinmarketcap.com/currencies/pax-gold/ & https://coinmarketcap.com/currencies/digital-gold/.  Bitcoin itself is very unique because it has a limited number (only 21 million in total) while gold has an unlimited amount and has other advantages..

Bitcoin is digital gold is just a phrase but if we see gold has comparatively more stability when comapre to Bitcoin.Only common thing between them are that both are good assets and also limited.

The OP describes bitcoin as a digital gold because of its rarity and price. Yes, we, humans named or coined the term gold and bitcoin so that we can distinguish the thing we have to describe.

Actually, he did not say directly that bitcoin is a gold. He just want to emphasize that bitcoin is valuable enough so that we might also see it as valuable as gold. Bitcoin is valuable and volatile, it can be an investment or asset that we can store over a period of time. For me, bitcoin can become gold when it comes to value and rarity. And it is also a digital currency that may destroys the fiat as time goes by.

bitcoin and gold are different, we know gold is a real thing, while bitcoin is a digital object, the functions of the two are different, Bitcoin is crypto, you can say it is a digital asset and not gold

I often hear that they always trying to connect bitcoin and gold, sometimes comparing it. But for me they are different in terms of many ways. Bitcoin is a valuable digital asset in today's generation and the majority is starting to adopt it nowadays, while gold is an asset we literally hold on to and it has been tried and used since the time of our ancestors.

BTC isn't comparable to gold or digital gold, because it's not like gold. It doesn't have a large demand from industry. It has nothing to offer besides being a store of value. Those two criteria exclude something from being a store of value, because there is zero protection against a sell off due to market sentiment or for any other reason. For gold protection is a heavy industry demand, many more uses besides being a store of value and finally, thousand of years of being a successful store of value. Bitcoin doesn't have any of that.

While I agree with you partially that hold has a huge demand from industries and luxury companies, the demand is not based on real needs. The value we give to hold is artificial, because its just based on some material that is very scare. If one day we would find a massive goldmine that the demand would likely drop. If everyone can afford a huge gold necklace than it's not special anymore. This aspect which is what makes bitcoins digital gold. There is only a limited quantity.

Bitcoin is bitcoin, it is what it is.

A lot of people are been saying that it is a Digital Gold but for me it is just Bitcoin. It is a digital currency and the most expensive of them all the reason why we usually compare it to gold. Bitcoin is so volatile, Gold isn't that volatile, as these two is limited, Gold can be used in some ways while Bitcoin is just a digital asset.

We have talked about this for the past 10 years, this is really not a new topic nor it is not something we should really care about neither, at the end of the day we are talking about something that will not really change that much of our lives if it is like gold or not.

If you care about bitcoin, just focus on bitcoin and nothing else, do not try to make it look like something else, just because bitcoin is seen as digital gold, or maybe seen as totally different should not change anything about bitcoin at all. See bitcoin as bitcoin and nothing else, it is something awesome that has gained a lot of price in the past few months and people are very much in love with it, keep focusing on that part and you will find why we love it so much and what it brings to the table for it.

You meant Gold is more like physical thing we could feel, touch, exchange, reshape and reform. I get the difference but don't you think they some similar functions since

• Bitcoin and gold can be exchange as asset and value transfer.
• Bitcoin and gold can be traded, one through coins exchange and the other one through brokers. There are even some cryptocurrency exchanges that support trading of digital gold limited in supply.
• Volatility can happen to both assets depending on the market situation.

I prefer bitcoin because it can yield more than gold.

Bitcoin could be considered as digital gold somewhere in the future.
Its fluctuations are too dangerous for mid term investments.
You never know whether you're going to make decent profit over 3 months or will have to hold on to it for next 3 years.

Futuristic approach is applicable since Bitcoin is only linked to gold as an asset or as an investment which gives a tendency for its market value to increase over time. But to why it won't be considered as digital version of gold is due to its usage as well to the nature of its value. Not to mention centralization and de centralization. Maybe, further development will quite sort things out whether these two shares the common ground or not, as an investment. But we just cannot blame those people who are already having expectations into such idea of this technology.

In 5, 10 or 50 years bitcoin may disappear or not due to government regulations, so we can't compare bitcoin with gold, gold won't disappear or lose its value. Investing in bitcoins is like investing in yuan, but it is more volatile. Maybe in 200 years we all use yuans, or maybe, and probably, not