Can Bitcoin surpass Gold ? Could it be used as (Store of Value) instead of Gold?

[randy8777]

Why would bitcoin surpass gold?

Give it time. Even if bitcoin is here to stay, Rome wasn't built in a day. But hey, I'm not one to believe that BTC is about to become world reserve currency, or some craziness like that, either.

people like to fantasize about bitcoin taking over fiat currency and gold. it's only not going to happen. what's wrong with bitcoin being an alternative instead of saying it will take over this and that.

+1

A scarce digital alternative asset class. Very possible and i don't mind this either. Question is, would its value escalate wildly if its use as an alternative became mainstream?

that's the point, it won't raise for nothing, if it would remain only a mere alternative, and maybe a niche alternative, well it depend how big you can see this alternative

going mainstream and being alternative are two things that can live together

then again, what do people consider mainstream bitcoin usage? world wide accepted by merchants? being able to have a bitcoin balance in your bank account and thus spending it as easily as fiat currency?

[dmwardjr]

Why would bitcoin surpass gold?

Give it time. Even if bitcoin is here to stay, Rome wasn't built in a day. But hey, I'm not one to believe that BTC is about to become world reserve currency, or some craziness like that, either.

people like to fantasize about bitcoin taking over fiat currency and gold. it's only not going to happen. what's wrong with bitcoin being an alternative instead of saying it will take over this and that.

+1

A scarce digital alternative asset class. Very possible and i don't mind this either. Question is, would its value escalate wildly if its use as an alternative became mainstream?

that's the point, it won't raise for nothing, if it would remain only a mere alternative, and maybe a niche alternative, well it depend how big you can see this alternative

going mainstream and being alternative are two things that can live together

then again, what do people consider mainstream bitcoin usage? world wide accepted by merchants? being able to have a bitcoin balance in your bank account and thus spending it as easily as fiat currency?

What?

YOU are the bank...   Exchanges are the middle man between the banks and bitcoin.  If the banks stop doing business with exchanges, exchanges will begin banking.  I bet you coinbase would.

Does this mean the bank would hold your coin for you?  I sure as hell hope not.  I would hold it yourself.

[lissandra]

well wouldnt the whole store of value be working, if not everyone were allowed to sell it whenever they want.

so it forces the value rise automatically. or limit the # of sales within that year or something.

[neurotypical]

Why would bitcoin surpass gold?

Give it time. Even if bitcoin is here to stay, Rome wasn't built in a day. But hey, I'm not one to believe that BTC is about to become world reserve currency, or some craziness like that, either.

people like to fantasize about bitcoin taking over fiat currency and gold. it's only not going to happen. what's wrong with bitcoin being an alternative instead of saying it will take over this and that.

+1

A scarce digital alternative asset class. Very possible and i don't mind this either. Question is, would its value escalate wildly if its use as an alternative became mainstream?

that's the point, it won't raise for nothing, if it would remain only a mere alternative, and maybe a niche alternative, well it depend how big you can see this alternative

going mainstream and being alternative are two things that can live together

then again, what do people consider mainstream bitcoin usage? world wide accepted by merchants? being able to have a bitcoin balance in your bank account and thus spending it as easily as fiat currency?

Mainstream usage is when most people use it, like at least 5/10 transactions being done in BTC. It would need to reach a popularity level within the culture. When a mainstream comedian like Jimmy Kimmel drops a joke about Bitcoin and everyone gets it, then it will be mainstream.

[dmwardjr]

Why would bitcoin surpass gold?

Give it time. Even if bitcoin is here to stay, Rome wasn't built in a day. But hey, I'm not one to believe that BTC is about to become world reserve currency, or some craziness like that, either.

people like to fantasize about bitcoin taking over fiat currency and gold. it's only not going to happen. what's wrong with bitcoin being an alternative instead of saying it will take over this and that.

+1

A scarce digital alternative asset class. Very possible and i don't mind this either. Question is, would its value escalate wildly if its use as an alternative became mainstream?

that's the point, it won't raise for nothing, if it would remain only a mere alternative, and maybe a niche alternative, well it depend how big you can see this alternative

going mainstream and being alternative are two things that can live together

then again, what do people consider mainstream bitcoin usage? world wide accepted by merchants? being able to have a bitcoin balance in your bank account and thus spending it as easily as fiat currency?

Mainstream usage is when most people use it, like at least 5/10 transactions being done in BTC. It would need to reach a popularity level within the culture. When a mainstream comedian like Jimmy Kimmel drops a joke about Bitcoin and everyone gets it, then it will be mainstream.

You may be thinking of only "Western" culture.  What about other cultures of those with no access to banking?  They are slowly having infrastructure for cellular networks constructed in unbanked areas of the world.  It's only a matter of time before what we say 5/10 transactions is the norm; where 8/10 transactions will be the norm for those who are presently unbanked.  So, lets not forget them.

[Mikestang]

The one thing gold has going for it that bitcoin doesn't is thousands of years of human history as a valuable commodity.  I have a feeling it will always be one of the kings of the hill.

[masterzino]

Bitcoin could easily surpass the value of gold in the near future (it almost did not long ago), but i doubt the powers that be will make it a global reserve currency.

[Melbustus]

Umm, we've been debating that since at least 2011.

This thread: https://bitcointalk.org/index.php?topic=35956
And continued here: https://bitcointalk.org/index.php?topic=68655

Over 1300 pages and counting. Consider those threads required background reading on the topic.


The answer is "yes, it's possible", btw.

[Amph]

Why would bitcoin surpass gold?

Give it time. Even if bitcoin is here to stay, Rome wasn't built in a day. But hey, I'm not one to believe that BTC is about to become world reserve currency, or some craziness like that, either.

people like to fantasize about bitcoin taking over fiat currency and gold. it's only not going to happen. what's wrong with bitcoin being an alternative instead of saying it will take over this and that.

+1

A scarce digital alternative asset class. Very possible and i don't mind this either. Question is, would its value escalate wildly if its use as an alternative became mainstream?

that's the point, it won't raise for nothing, if it would remain only a mere alternative, and maybe a niche alternative, well it depend how big you can see this alternative

going mainstream and being alternative are two things that can live together

then again, what do people consider mainstream bitcoin usage? world wide accepted by merchants? being able to have a bitcoin balance in your bank account and thus spending it as easily as fiat currency?

there was an error in that quote, it was can't and not can, so you bitcoin can't be an alternative and reach mainstream at the same time

by the definition of it i think that the last thing you said is the most promonint to consider it mainstream, or fully adopted, and another to add is(the most important) not dependent of fiat, you can use it directly like you can use any fiat, but for everything in this life, so basically everyone should accept it as a payment like they are accepting fiat

[luciann]

Bitcoin could easily surpass the value of gold in the near future (it almost did not long ago), but i doubt the powers that be will make it a global reserve currency.

well keep in mind, that global reserve currency is not gold.

Its in fiat form, which is in dollars, and it wouldnt be bitcoin if it were that aim.

[dmwardjr]

I personally believe bitcoin will become preferred over gold as a means to "store wealth" in the next 10 years or less.  Bitcoin will first be used as a means of storing wealth before it will be used as a means of buying and selling goods and services in "modernized" culture.  The other billions of people who are not banked will begin to use bitcoin as a means of storing wealth AND commerce before "modernized" (banked) cultures adopt it as a currency.

When the blocks halve in July or August of 2016, we will see the price of bitcoin doubling over a month period of time.  The market will have much less downward pressure because only half the coin we have dumped on the exchanges today will be dumped each day when the blocks halve.  When the price goes up considerably, less bitcoin will be dumped by miners to pay for power [Reducing downward pressure].  Also, the number of transactions keep increasing significantly month after month.  The majority of those transactions are from trading bitcoin [Converting fiat into bitcoin and bitcoin back to fiat].

We will have many more people involved in trading bitcoin a year from now [When the blocks halve] than what we have trading on the exchanges today.  This will create an exponential increase in upward pressure when the blocks are halved as well.  So, once the blocks halve, we can expect a rather large rally going forward to buy [What is presumed to be] relatively cheap bitcoin.  I can see this realization coming to the minds of many just before the blocks halve and create somewhat of a race to buy bitcoin (raising the price).  We can expect a pretty big jump in price of bitcoin just before the blocks halve in my opinion.

If your argument against this is it did not happen the previous time the blocks halved.  I can honestly say there is a BIG difference going from 25 to 12.5 than it is from 50 to 25.  MUCH LESS DOWNWARD PRESSURE ON THE EXCHANGES WHILE HAVING A SUBSTANTIAL INCREASE IN NUMBER OF PEOPLE PARTICIPATING IN TRADING ON EXCHANGES AND THE FACT THAT WE HAVE MORE EXCHANGES.

Price predictions by month for bitcoin beginning March 31, 2016 for the race leading up to the blocks halving:

March 31/2016:          $  330.00
April 30/2016:            $  370.00
May 31/2016:             $  440.00
June 30/2016:            $  500.00
July 31/2016:             $  570.00
August 31/2016:         $  630.00
September 30/2016:   $  700.00

This next block halving will play a major roll in our next big rally.  However, we can expect more caution from investors this time compared to the previous rally to $1,200.00 in December of 2013.  This is why I don't have the price rising up to $1,200.00 or more over a 2 month period like the previous rally to $1200.

We will have more user friendly apps and technologies using the blockchain beginning to appear to the market by this time.  The headlines in the news will begin get more would be investors interested in joining the rally so they don't miss out.  This news of the rally and news of technologies using the blockchain will be all over the headlines and begin to give bitcoin the push it needs to slowly become more mainstream.  

This news will create the biggest rally yet [In my opinion] for bitcoin.  It's a rally that will last for many years to come.  Why?  because all of the downward pressure will be erased overnight when the blocks halve and the number of traders in the bitcoin exchanges will have more than doubled.

Over the next 3 years [After the blocks halve] we will have more user friendly apps and blockchain technologies will begin to be used in the financial sector.  The headlines in the news about bitcoin and the blockchain will be more prevalent [Encouraging more investors and traders to come into the fold].  We could see the price of bitcoin rise exponentially by the next block halving in 2020.  Why?  Even less downward pressure from bitcoin being dumped on the market.  New available bitcoin will not be as available anymore because it's worth much more and less of it is being dumped on the market by the miners.

My predictions on the price of bitcoin by year after the blocks halve:

August 2016:         $      630.00
August 2017:         $   1,200.00
August 2018:         $   1,800.00
August 2019:         $   2,800.00
August 2020:         $   4,000.00
August 2021:         $   5,800.00
August 2022:         $   7,500.00
August 2023:         $ 12,000.00
August 2024:         $ 15,500.00
August 2025:         $ 19,000.00

All of these price marks for each year were keeping other things in mind.  Such as world economy; scarcity of bitcoin [Only so many made; still tens of thousands of metric tons of gold yet to be mined]; popularity of the blockchain growing year after year; popularity of bitcoin growing year after year; the ease of use of apps designed for the blockchain year after year; more retailers accepting bitcoin year after year; more people in "unbanked" parts of the world using bitcoin in growing numbers year after year.

[Afrikoin]

Why would bitcoin surpass gold?

Give it time. Even if bitcoin is here to stay, Rome wasn't built in a day. But hey, I'm not one to believe that BTC is about to become world reserve currency, or some craziness like that, either.

people like to fantasize about bitcoin taking over fiat currency and gold. it's only not going to happen. what's wrong with bitcoin being an alternative instead of saying it will take over this and that.

+1

A scarce digital alternative asset class. Very possible and i don't mind this either. Question is, would its value escalate wildly if its use as an alternative became mainstream?

that's the point, it won't raise for nothing, if it would remain only a mere alternative, and maybe a niche alternative, well it depend how big you can see this alternative

going mainstream and being alternative are two things that can live together

then again, what do people consider mainstream bitcoin usage? world wide accepted by merchants? being able to have a bitcoin balance in your bank account and thus spending it as easily as fiat currency?

Mainstream usage is when most people use it, like at least 5/10 transactions being done in BTC. It would need to reach a popularity level within the culture. When a mainstream comedian like Jimmy Kimmel drops a joke about Bitcoin and everyone gets it, then it will be mainstream.

my definition of Mainstream (MSM) is when for example, all the major financial networks cover its price movements daily, like they do for other assets. Or, when it is listed at your stock brokers as an asset anyone can buy into OR when (in my country), its price vs the local currency is covered during the business segment like USD, GBP,EUR or when CME traders can view it on their globex platform as as a tradable asset.

In short, i mean legitimacy in the eyes of the public. SO that no one can say it is a 'scam' anymore or think that its going away.

[Cconvert2G36]

Comparing a heavy, inert, and malleable metal, used as money for 6000 years, to a string of characters isn't really helpful at this point. Gold is supposed to be a fallback, a bearer asset with value regardless of externalities.

Bitcoin is a highly speculative digital token that could be the moon or zero, sometimes within the same week. It's dependent on a bunch of things working perfectly just to function, let alone thrive. They're completely different markets, and people (should) have completely different reasons for holding them.

For perspective, being generous, the entire market cap of btc is a few weeks of phone sales for aapl.

[gentlemand]

How many people here know folks who have a position in gold?

Of all the people I know, it is precisely one and I have never known anyone else who's dabbled with it in the past.

I'd say Bitcoin could have far more potential and penetration than gold if it served a similar role.

You don't have to dick around with paper gold, buying an alleged share of a bar in a vault in a far off land or taking possession of a physical lump that may be fake and can only be offloaded in a handful of places.

All you gotta do with Bitcoin is buy the shit and it's forever yours within a few minutes. No question marks, no third party flakiness.

That's worth something in my book.  

[dmwardjr]

How many people here know folks who have a position in gold?

Of all the people I know, it is precisely one and I have never known anyone else who's dabbled with it in the past.

I'd say Bitcoin could have far more potential and penetration than gold if it served a similar role.

You don't have to dick around with paper gold, buying an alleged share of a bar in a vault in a far off land or taking possession of a physical lump that may be fake and can only be offloaded in a handful of places.

All you gotta do with Bitcoin is buy the shit and it's forever yours within a few minutes. No question marks, no third party flakiness.

That's worth something in my book.  

Well said, Sir!

[markj113]

I have a fair bit of gold stacked, actually I converted all my BTC in to the yellow shiny stuff.

[ssmc2]

I have a fair bit of gold stacked, actually I converted all my BTC in to the yellow shiny stuff.

All of it huh? You don't even want to hedge a bit with BTC? Seems pretty risky.

[dmwardjr]

I have a fair bit of gold stacked, actually I converted all my BTC in to the yellow shiny stuff.

All of it huh? You don't even want to hedge a bit with BTC? Seems pretty risky.

My sentiments exactly!!!

I'm sitting at 40% BTC; 35% GOLD; 10% SILVER; 15% STOCKS

[markj113]

I have a fair bit of gold stacked, actually I converted all my BTC in to the yellow shiny stuff.

All of it huh? You don't even want to hedge a bit with BTC? Seems pretty risky.

When I swapped out my BTC for gold it wasn't that far off a 1:1 ratio, now its over 5 BTC to an oz of gold, more than happy with my decision.

You get to stare and digits on a screen, I get to play pirate with my treasure chest -

[illyiller]

LOL, you actually keep it in a treasure chest!

Diversification is best. Good to have positions in bitcoin, gold, silver .... revenue-earning assets like real estates .... I'd say solid dividend stocks but I do believe that the equities markets are in for a serious downturn in the next year.