Bitcoin vs. Gold Prices

[wildflower18]

At present, Bitcoin is at the best level in the world . Which is more valuable than the current market gold . The price of gold was very much in antiquity . But now Bitcoin has earned a great name .

Bitcoin is the best because of its value the chance to increase high in the market. Actually we couldnt compare gold in terms of its prices because of the more volatility happen in bitcoin always than gold. Although I can say gold is important in our economy impact.

[darewaller]

Gold? no more talking about gold. In this modern era, bitcoin is more needed by people. Bitcoin makes investors really sure it's safe to invest their money into it. Bitcoin price also increases fast for years and that's really good for investors too.

Gold has become old fashion of saving your wealth. The market of gold is going down gradually because of the immense popularity of crypto currencies.

Gold investors have withdrawn their much investments form the industry and investing them into bitcoin because of high returns bitcoin give them. Bitcoin is never ever going to lose its volatility which means investors are all the time going to have some profit.

No matter what, even if the price rate for Gold is $100,000 for each, that wouldn’t make it better than Bitcoin when it comes to investment, because Gold has a stable price , so I don’t see any way one would expect to earn from that. But as for Bitcoin, it can either go down or up… so expect to lose or win.

[bitgolden]

In fact, gold is already somewhat losing its purchasing power with time. If we look at inflation-adjusted gold prices, gold has been underperforming against dollar inflation since early 1980s. Yes, its has risen a lot in nominal terms but it looks like people are losing interest in precious metals at large. It may be just a slow-oozing and long-lasting effect of gold being stripped of any monetary value after it seized to be a dollar backup.

I'm not sure what you mean by underperforming against dollar inflation.  Since the postwar Bretton Woods period, an ounce of gold has gone from $35 to $1300, whereas $35 is still $35.  If you mean something else, the early 80s were a bad place as a starting point, since gold dropped more than 50% immediately at the start of that period.

We can then take 1971 as a starting point.



I mean inflation adjusted prices, of course. So $35 back in 1934, the last year when gold had actually been backing up the dollar en masse, is not the same $35 as today. If we strip dollar of its inflation, we will see that gold didn't rise much in real prices. And if we take time period from 1981 till nowadays, the US government bonds, for example, have been performing better that gold. The treasuries are considered a hedge against against dollar inflation, that's what I mean by gold underperforming against it. That is, the treasuries were a better hedge than gold.

Exactly! The market price of gold is very much stable since a long period of time. There is no significant increase in its market value since long and that is the reason most of the people ho were previously investing in gold are now withdrawing their money out of it.

Bitcoin market value on the other hand has increased and is continuously increasing quite significantly since the time this world has seen bitcoin.

[ricardobs]

the U.S debt is almost reaching ~ $21 Trillion, and Bitcoin supply is 21 million .. don't know what that means,  just something to interesting think about.

It is all about the good news coming from the bitcoin world. You will be hearing this very soon that either they are increasing the number of bitcoins or the price will be increased so much. Like in the last year, when the demand was too high bitcoin’s price had been jumped from $7k to $19k within a course of 2 weeks probably. Same will be happening now, wait and watch the story.

I think Gold has a higher price than Bitcoin and its price is very stable. As of Bitcoin, its price is no where near the price of Gold, but you will gain profit from it than you will do from Gold cause Bitcoin is still growing and volatile. But I believe maybe one day it will achieve the level of gold.

[lili song]

Bitcoin until now still more profitable more than gold. For me, for invest I will choose bitcoin and the second gold.
I invest bitcoin and gold, but I see bitcoin increase faster than gold. We can also get bitcoin from campaign.

[heartrodriguez28]

Bitcoin is more profitable indeed, but it is equally risky compared to Gold where prices hover on relatively the same levels and sometimes would even rise higher depending on situations around the world. Bitcoin may make you rich, but the already rich use Gold for safety.

[dvillier]

Bitcoin is more profitable indeed, but it is equally risky compared to Gold where prices hover on relatively the same levels and sometimes would even rise higher depending on situations around the world. Bitcoin may make you rich, but the already rich use Gold for safety.

As mate mentioned that BTC is more profitable then Gold because price of BTC is more high then gold while also i clear you that when you buy gold from goldsmith and then after sometime when you want to sale then gold smith will cut some commission due to which you will will always face loss if you are normal customer not a goldsmith. While there is no such issue in BTC and price of BTC is almost increasing with time due to which people can earn more and more profit.

[Hell-raiser]

In fact, gold is already somewhat losing its purchasing power with time. If we look at inflation-adjusted gold prices, gold has been underperforming against dollar inflation since early 1980s. Yes, its has risen a lot in nominal terms but it looks like people are losing interest in precious metals at large. It may be just a slow-oozing and long-lasting effect of gold being stripped of any monetary value after it seized to be a dollar backup.

I'm not sure what you mean by underperforming against dollar inflation.  Since the postwar Bretton Woods period, an ounce of gold has gone from $35 to $1300, whereas $35 is still $35.  If you mean something else, the early 80s were a bad place as a starting point, since gold dropped more than 50% immediately at the start of that period.

We can then take 1971 as a starting point.

I mean inflation adjusted prices, of course. So $35 back in 1934, the last year when gold had actually been backing up the dollar en masse, is not the same $35 as today. If we strip dollar of its inflation, we will see that gold didn't rise much in real prices. And if we take time period from 1981 till nowadays, the US government bonds, for example, have been performing better that gold. The treasuries are considered a hedge against against dollar inflation, that's what I mean by gold underperforming against it. That is, the treasuries were a better hedge than gold.

Exactly! The market price of gold is very much stable since a long period of time. There is no significant increase in its market value since long and that is the reason most of the people ho were previously investing in gold are now withdrawing their money out of it.

Bitcoin market value on the other hand has increased and is continuously increasing quite significantly since the time this world has seen bitcoin.

Strictly speaking, the demand for physical gold is pretty resilient but let's remember that over 50% of all gold is used in jewelry today, not for investment purposes. So even if interest for gold as investment is on the wane overall, the lack of interest might not heavily affect the prices at the end of the day. On the other hand, there is a huge market of gold derivatives, which are sometimes called paper gold. Paper gold allows to increase the volatility of gold price, and those who are not looking into long-term or even life-time investments in gold can do pretty well with paper gold.

[cluit]

With gold, it is pretty easy to predict prices. Unlike Bitcoin, gold value doesn't change much over time. It is its dollar price that changes. So if dollar is going to hyperinflate in the next few years, gold will definitely surge in that currency, but in respect to the value of goods it will likely remain the same give or take a few hundred dollars. Whether dollar is going to crash would depend on the economic policies of the US government as well as the economic situation in countries which aim to replace the American dollar. I mostly refer to China here.

Nice analysis, thank you.  They say, an ounce of gold has been buying 500 loaves of bread since Greek and Roman times.

The only thing I wanted to add is that today we have a situation that has not been seen since at least the 1500s, when massive amounts of silver were discovered in South America by Spain.  This is an increase in non-state-issued, decentralized money.  The 1500s episode resulted in a long inflation and the loss of purchasing power of gold and silver.  We may see the same thing over the next decades.

That is, assuming the elites don't screw up the public's trust in cryptos by promoting too many altcoins!

In fact, gold is already somewhat losing its purchasing power with time. If we look at inflation-adjusted gold prices, gold has been underperforming against dollar inflation since early 1980s. Yes, its has risen a lot in nominal terms but it looks like people are losing interest in precious metals at large. It may be just a slow-oozing and long-lasting effect of gold being stripped of any monetary value after it seized to be a dollar backup.

Gold is no more an investment tool. People are investing more into crypto currencies, especially Bitcoin because this way they increase their capital within a short span of time and that increase is also a noticeable one. Gold is better to be used in jewelry, the purpose for which it really exists.

There were many problems with gold and crypto currencies are solution to those problems. Definitely investors are going to choose the easy way of doing matters.

[Alalex]

       Bitcoin is no temporary difference. Gold could also rise high as gold demand in the market began to fall and weaken, there gold entrepreneurs will be anxious if reduced sales of gold. So the gold entrepreneurs make a way for gold to be smooth to be reproduced. Price is an option for buyers where buyers can calculate the price of gold for the future. All have been determined gold and bitcoin are engaged in the field of trade. But cripto money never knows when he will go back for a very high price. Why these different looks are all clearly the same has its own price. For my savings, I chose to save with Bitcoin money than I chose gold.

[BobK71]

I mean inflation adjusted prices, of course. So $35 back in 1934, the last year when gold had actually been backing up the dollar en masse, is not the same $35 as today. If we strip dollar of its inflation, we will see that gold didn't rise much in real prices. And if we take time period from 1981 till nowadays, the US government bonds, for example, have been performing better that gold. The treasuries are considered a hedge against against dollar inflation, that's what I mean by gold underperforming against it. That is, the treasuries were a better hedge than gold.

So, you're saying that gold doesn't beat inflation, not that gold doesn't beat the dollar.  (Remember, a dollar is a dollar.)  That is possible, but I would still maintain it's arguably a better inflation hedge than US government bonds, or anything else, over the long term.

US Treasury yields went steadily up over 35 years from the end of the war to about 1980.  From that (high) peak they came steadily down for another 35 years to close to zero today.  (This is one of the simplest but most telling and interesting charts, BTW.)  If you bought long-duration bonds in 1981, certainly you would have beaten inflation, at this point.

But in general, the system is designed so that you don't have any safe protection against inflation.  The entire system is designed so inflation pushes savers into risky assets like stocks, real estate and corporate debt, assets that keep the entire system afloat so the elites can continue to enjoy their wealth and power.  Thus, if US government bonds provide a shelter from inflation, it's only temporary.  (This includes gold too: gold is manipulated down most of the time so people don't use it as a safe store of value -- only when the elites lose control that gold shoots up.  So gold protects against inflation only over the long term.)

[chess888]

It is a possibility, for the bitcoin to be the primary means of exchange through out the whole modern world. If that happens, it would be worth more than gold in terms of price. Bitcoin is currently more valuable because it has more profitable uses(also more interesting).

[bryant.coleman]

Bitcoin may make you rich, but the already rich use Gold for safety.

Well, that is the primary difference between the two. Gold is quite useful, when you want to keep your wealth stable. On the other hand, Bitcoin comes to picture, when you want to get rich. That doesn't mean that investing in gold is not profitable. If you look at the charts, then it can be found that during the last 20 years gold has given more returns than the DOW JONES.

[bilyboy]

If bitcoin vs gold for long term investment. I choose gold, because bitcoin have much risk compared gold ( price still stable ) , not like bitcoin, price not stable and very fast to going up and down. But if you want to got a lot profit, you must try invest in bitcoin and then you trade bitcoin in market. I believe if you can trade, you can got a lot of profit

[Xenoph0bia]

If bitcoin vs gold for long term investment. I choose gold, because bitcoin have much risk compared gold ( price still stable ) , not like bitcoin, price not stable and very fast to going up and down. But if you want to got a lot profit, you must try invest in bitcoin and then you trade bitcoin in market. I believe if you can trade, you can got a lot of profit

Bitcoin is a cryptocurrency while gold is an assest.Bitcoin's price is very volatile while gold is stable.Investing in bitcoin is more profitable as there is a lot of fluctuation in its price.On the other hand,fluctuations in gold is very less or nil.So the profits from gold is also very less.Price of these commodities depend on the forces of demand and supply.Since demand of bitcoin is much more than gold,the prices of bitcoin is very much high than the gold.I think investing in bitcoin is for short term purposes while investing in gold is for long term purposes.

[BobK71]

Strictly speaking, the demand for physical gold is pretty resilient but let's remember that over 50% of all gold is used in jewelry today, not for investment purposes. So even if interest for gold as investment is on the wane overall, the lack of interest might not heavily affect the prices at the end of the day. On the other hand, there is a huge market of gold derivatives, which are sometimes called paper gold. Paper gold allows to increase the volatility of gold price, and those who are not looking into long-term or even life-time investments in gold can do pretty well with paper gold.

I am very much against paper gold.

In the short term, if you want to play the game against sharp, experienced professionals with deep pockets who are implicitly backed by the state-bank elites, ie bullion banks and investment banks, you're free to lose your money!

In the long run, paper gold is not worth the same amount of toilet paper (since the latter has a good use,) since there's a lot more paper than the physical gold that the paper claims it reserves for you.  Of course, this is all legal, since I'm sure the elites make sure of that.  The fine print basically says, when it comes time to win big, you don't get to win.  (That is, when conditions are such that gold really goes crazy up.)

This is like playing poker, where you invest some money in a hand that, although having only a small chance to win, will win big when things do work out.  But in the case of paper gold, it's precisely this scenario that you can't collect (or at least not collect nearly enough to justify the bet.)

[thecoder2017]

Gold is a thing that  you can hold and keep and also you can used it and it's price is becoming higher but sometimes also it fall just like Bitcoin but the difference between them is bitcoin is a crypto currency that can be kept or hold you can also trade and invest to gain more profit.

[Kalemder]

Bitcoin is your future gold mine. Gold is a thing of the past. Trade is now much faster and more dynamic.

[Hell-raiser]

I mean inflation adjusted prices, of course. So $35 back in 1934, the last year when gold had actually been backing up the dollar en masse, is not the same $35 as today. If we strip dollar of its inflation, we will see that gold didn't rise much in real prices. And if we take time period from 1981 till nowadays, the US government bonds, for example, have been performing better that gold. The treasuries are considered a hedge against against dollar inflation, that's what I mean by gold underperforming against it. That is, the treasuries were a better hedge than gold.

So, you're saying that gold doesn't beat inflation, not that gold doesn't beat the dollar.  (Remember, a dollar is a dollar.)  That is possible, but I would still maintain it's arguably a better inflation hedge than US government bonds, or anything else, over the long term.

US Treasury yields went steadily up over 35 years from the end of the war to about 1980.  From that (high) peak they came steadily down for another 35 years to close to zero today.  (This is one of the simplest but most telling and interesting charts, BTW.)  If you bought long-duration bonds in 1981, certainly you would have beaten inflation, at this point.

But in general, the system is designed so that you don't have any safe protection against inflation.  The entire system is designed so inflation pushes savers into risky assets like stocks, real estate and corporate debt, assets that keep the entire system afloat so the elites can continue to enjoy their wealth and power.  Thus, if US government bonds provide a shelter from inflation, it's only temporary.  (This includes gold too: gold is manipulated down most of the time so people don't use it as a safe store of value -- only when the elites lose control that gold shoots up.  So gold protects against inflation only over the long term.)

These Gold vs Bitcoin topics get so bloated over time that I always neglect to look into them.

At large, I agree that with US Treasury bonds you are as safe as the government which issues them. If it gets kicked out for whatever reason, these bonds won't be worth the paper they are printed on, metaphorically speaking. Nevertheless, if we care about inflation only discarding the possibility of default by the government on their "promises", we can buy Treasury inflation-protected securities, also known as TIPS. Their principal is tied to the inflation rate, more specifically the Consumer Price Index, so with these securities you are sort of protected from inflation. It is just that most people want more than that.

[PrinceCaspian]

We don't need to compare bitcoin and the gold price because they are on the different market and it means that the bitcoin and gold is also different because bitcoin is a digital cryptocurrency or asset so we don't need to mess things up in order to look smart because if you are smart then you know that both are different but both are good asset.