Bitcoin vs. Gold Prices

[Gargo]

Gold has more stable price which will in future go slowly up in the same time bitcoin has ups and downs but in future its price should be like 10x bigger than now so investing in it should bring big profit.

[1715362950]

1715362950

[bitcoinerjawa]

it seems that bitcoin prices are more profitable than the price of gold because the total supply of bitcoin is currently very limited and has experienced almost the maximum limit if gold seems to have a very large total supply that makes the price less movement and difficult to gain profits.

[Hell-raiser]

This is an old story about gold being negatively affected by paper gold. There are enough perfectly viable arguments that support the view that paper gold actually props up the value of the real one. If anything, gold derivatives add to speculation, but speculation attracts people looking for easy money. Obviously, gold prices are set to rise under these circumstances. Just like it happens with Bitcoin and other cryptocurrencies.

Sorry, but you simply can't be serious that paper gold props up and not suppresses the price of gold.

When you increase the effective supply of anything, you reduce the price.  Simple as that.  (Unfortunately, many gold investors are still blind enough to believe paper gold equals the real thing, thus the increase in effective supply.)  The trust in paper gold is propped up by the size of institutions behind the paper, so that market is in effect a microcosm of money itself -- an elite inflated bubble, if possibly a long-term one.

To tell the truth, I'm totally serious, and I heard all these arguments, like "when you increase the effective supply of anything, you reduce the price", many times already. The problem with your reasoning, and any such reasoning in general, is that you don't take into account the gory details, which turn everything upside down. Paper gold is gold which is created on demand. That means there is no such thing as first increasing the supply and then prices going down because specifically in this case the relationship is inverse. Besides, paper gold may in fact be effectively negative as in shorts, so things get really complicated from here to assert anything conclusively.

[davinchi]

Bitcoins are better if used tactically and if we could spend quality time on it. Otherwise go for gold investment both of them are good

Purely, there is no harm in diversifying, but I have never really bothered myself about gold anyway and I would rather go for other investments than trying to store gold for value. It may be worth it in the long run, but I believe bitcoin and cryptocurrency investment in general have more opportunity for investors than gold. Nevertheless, this is just my own opinion and no one can absolutely know what the future holds. Now a days people prefer to diversify within cryptos rather than touching gold or shares.

[logicgate]

bitcoin and gold have their respective weaknesses, I think bitcoin is faster to gain profit in investing,but bitcoin prices are also very difficult in the guess,compared to a more stable gold price..

Right! Both have their own pros and cons but in most of the comparisons, bitcoin is having a clear edge over bitcoin. Bitcoin is able to meet the fast and high monetary demands of the market and investors which is not possible for gold to cope with. Gold has been limited to ornamental uses after the invention of this technology.  People are leaving gold market for participating into crypto market for bitcoin.

[butlar44]

In the current business trend, I would prefer bitcoin to gold.

[ucok_aball]

gold is better than gold by holding for too long i think 5000 yers lol but in if you want in short time or 5 or 10 years go for bitcoin or do short trading because bitcoin is more good than goood if we talk about profit you can get more profit here by investing in bitcoin or some altcoins that gives to all a agood amount of btc or you can convert it into real money.

total bitcoin supply in the world is indeed limited and certainly many also become frozen balance and it makes bitcoin increasingly rare later then for gold supplai is always made and it is in terms of price will be like that

[Greenkarki]

The last time I did this analysis, gold was a thousand times more expensive than Bitcoin, if we compare the same proportions of total supply.  By now, Bitcoin has risen 30-fold, and so gold is only 30 times more expensive.

Of course, I was roundly dismissed for speculating Bitcoin could get anywhere near a six-figure price in dollars.  If I was criticized for being too bullish on Bitcoin, today I might be seen as too bullish on gold.

How to answer the question -- where to from here?  As I wrote recently, gold is objectively a better money for securing savers' freedom from governments and central banks.  So, if the long-term price ratio is 10 to 1 in favor of gold, Bitcoin can still go up 3 times.  It'd still be a great return by the standards of any asset, but Bitcoin is not quite as compelling as it used to be.

Especially, many early owners of Bitcoin, now flush with capital, who are also sympathetic to gold, might decide to sell some Bitcoin and buy gold at these prices.

We have to be careful here.  This entire analysis was based on the (pretty common) assumption that governments and central banks have nothing to do with gold and Bitcoin prices, and that the future of Bitcoin is to be another limited-supply monetary asset like gold, but at an appropriate relative price.  (The reality, at least with gold prices, is of course the opposite.)

So, the real question is what the Western elites want (and what China and Russia want, if they're able to counter the West in the field of monetary engineering.)  If Western debt levels and resulting economic/social/political problems are so bad that the elites have decided to use cryptocurrency to effect a reset of the entire system, to effectively wipe out their debt and start afresh, as just after World War II, then the sky is the limit for Bitcoin and cryptos.

If, on the other hand, the Western elites are only preparing for such a reset by taking advantage of cheap crypto prices so far, then we have to watch the relative price to gold.  The rise of Bitcoin, so far, is consistent with this scenario too.  From here on, our thinking might have to change.

For the answer to that question, watch the news closely for the signs!

In older days only people are invested in gold for their future. In this modern era bitcoin is famous than gold. So people are ready to invest in bitcoin. If we invest in gold it will take too long to gain profit. But in bitcoin it is not like that. You no need to wait for such long time. We can profit in short term itself. This is the main reason people would choose the bitcoin rather than gold.

[Testimony50]

Gold ! What's that ? This is what is going to happen soon when people will actually stop talking about gold and will just talk about Bitcoin. Even newspapers will stop printing prices of gold and start printing the daily prices of Bitcoin. This day is not far as I can see Bitcoin is growing alot . Infact alot more than what was expected this year.

[Omega Weapon]

For me I am gonna support the investment in btcs because btcs can make us rich in a moment and that's exactly what I want

If we make a comparison in between the market prices of bitcoin and that of gold only, then we will get to know that it is the market prices of bitcoin which are far more than that of gold and that they are also increasing at a very rapid rate. The price of gold is very much stable since long and that it is not helping its investors in making of any significant amount of money as well. You need to think well and make a smart decision.

Even in just few years, we all know the impact bitcoin has created for investors and which I am sure gold has not even been able to beat that at all since all the years it has been in existence. I would rather prefer putting my bet more on bitcoin than gold, not like I have any gold anyway.

Although, for security and for safety reasons or not bothering about having a problem with your investment, gold is more of an established asset, but early adopters in a great future, I would not miss that for anything.

While it is obvious that I prefer bitcoin over gold we will make a terrible mistake if we underestimated gold if the economy collapsed today people will run and get gold not bitcoin and the reason is simple gold has been around for thousands of years while bitcoin is still very new compared to that and the growth of gold at that point could be almost infinite so it is a good idea to still have some gold just in case something like that happens.

[Hell-raiser]

we shouldn't forget about the huge gold derivatives market like gold futures, options, ETF's and whatnot, while Bitcoin's derivatives market is outright pathetic and unlikely to become very popular in the future.

I would never buy paper gold.

The entire investment thesis for gold is that your government may (effectively) devalue currency against gold in a financial crisis by trying to inflate away the debt.

Unless you're a multi-decade holder, the probability of this coming true is low, on a day to day basis, especially in the developed world.  But when it does pay off, your gains are likely much better than standard investments like stocks, bonds, and deposits.

Gold investments, averaged out, weren't much better than all the common investment instruments you enumerated, not for the last +30 years. In fact, they were performing worse than, for example, so-called TIPS (treasury inflation-protected securities). Indeed, if you were speculating with gold in a smart way, you would fare much better, but absolutely the same can be said in respect to such assets as stocks and bonds (not sure about deposits, though). And I'm not the only one pointing this out, that gold has been underperforming for the last few decades. In simple terms, its real value has been slowly deteriorating.

[BobK71]

Gold investments, averaged out, weren't much better than all the common investment instruments you enumerated, not for the last +30 years. In fact, they were performing worse than, for example, so-called TIPS (treasury inflation-protected securities). Indeed, if you were speculating with gold in a smart way, you would fare much better, but absolutely the same can be said in respect to such assets as stocks and bonds (not sure about deposits, though). And I'm not the only one pointing this out, that gold has been underperforming for the last few decades. In simple terms, its real value has been slowly deteriorating.

The most major paradigm shift in, say the US, was arguably the founding of the Federal Reserve.  So I suggest taking the period 1913 to 2018.  Gold has gone up on the order of 50 times (from ~$22 to ~$1300 per oz.)  The Dow Jones Ind. Average went from very approximately 1000 to today's, say, 25000, so 25 times.

[ASHLIUSZ]

Gold has got good support from common people around the globe. This is all because of the increased usage of gold on different needs. Bitcoin as a technology has gained a different reputation from people around the world. This has lead to the growth and increased popularity of bitcoin.

[Hell-raiser]

Gold investments, averaged out, weren't much better than all the common investment instruments you enumerated, not for the last +30 years. In fact, they were performing worse than, for example, so-called TIPS (treasury inflation-protected securities). Indeed, if you were speculating with gold in a smart way, you would fare much better, but absolutely the same can be said in respect to such assets as stocks and bonds (not sure about deposits, though). And I'm not the only one pointing this out, that gold has been underperforming for the last few decades. In simple terms, its real value has been slowly deteriorating.

The most major paradigm shift in, say the US, was arguably the founding of the Federal Reserve.  So I suggest taking the period 1913 to 2018.  Gold has gone up on the order of 50 times (from ~$22 to ~$1300 per oz.)  The Dow Jones Ind. Average went from very approximately 1000 to today's, say, 25000, so 25 times.

But I don't deny that. For the record, I'm quite pro-gold myself. However, the point is gold has always been and still remains a safe haven into which people run when things like major wars and economic meltdowns happen. With that in mind, I'm almost 100% sure that most of gold price rise in the 20th century occurred within just a few years. I suspect these years would be around and after the two world wars, Great Depression, and most certainly after the dollar had been divorced from its gold backup in early 70's as well as during the years that followed the Nixon shock.

[biboy]

Gold has got good support from common people around the globe. This is all because of the increased usage of gold on different needs. Bitcoin as a technology has gained a different reputation from people around the world. This has lead to the growth and increased popularity of bitcoin.

That is right, that is why we should keep bitcoin rather than gold, I don't condemn gold as it is also profitable but it will take a lot of time unlike in bitcoin wherein you have the potential to gain even within the day depends on the value of bitcoin which is a good thing.

[zergenyt09]

Gold has got good support from common people around the globe. This is all because of the increased usage of gold on different needs. Bitcoin as a technology has gained a different reputation from people around the world. This has lead to the growth and increased popularity of bitcoin.

Everything has its own charm and charismatic traits that can’t be compared with something else. Like in this case, both bitcoins and gold have enormous characteristics that need to be observed carefully and only then you can find out what best hidden profits are hidden within these two elements. So this comparison is just waste because this will be ending with nothing.

[setialovers]

Gold has more stable price which will in future go slowly up in the same time bitcoin has ups and downs but in future its price should be like 10x bigger than now so investing in it should bring big profit.

I think gold have more stable price because market on commodity already mature. Gold already known as investment for centuries. Compare with bitcoin or cryptomarket, its far enough to compare. I am believe cryptomarket will stable and market cap on crypto will increasing more than highest

[rynanosih21]

bitcoin more can get big results but of course, risks exist at large will also be bitcoin on gold. volatile remains a difficult issue for investors bypassed bitcoin.

[naidray]

bitcoin more can get big results but of course, risks exist at large will also be bitcoin on gold. volatile remains a difficult issue for investors bypassed bitcoin.

Gold also poses great risks if you consider the people who have invested since 2013 into gold, probably never got any returns but  in that same periods bitcoin must have produced some 1500% of returns. Now say, are you ready to take risk or want to go with traditional options ?

Altcoins are indeed a threat for bitcoin because that is where the replacement for bitcoin will come in the future. Altcoins are having more and more better features and specifications and if the people really find an altcoin that is literally better than bitcoin then it will be just easy as pie for that altcoin to replace bitcoin.

I personally do not think altcoins are threat, they are altcoins and that is what they are always going to be, bitcoin is not going to remain stagnant in development and I am sure would keep progressing. Altcoins on the other hand would be more useful for investments while some of them who are claiming to be stronger than bitcoin without any serious usage or product will only end up useless. Let's wait and see.

[makolz26]

Gold has more stable price which will in future go slowly up in the same time bitcoin has ups and downs but in future its price should be like 10x bigger than now so investing in it should bring big profit.

I think gold have more stable price because market on commodity already mature. Gold already known as investment for centuries. Compare with bitcoin or cryptomarket, its far enough to compare. I am believe cryptomarket will stable and market cap on crypto will increasing more than highest

I may agree with you that bitcoin has a stable price compares to bitcoin, but it will take a lot of time before you can have the ROI in your life,, but if it is fine rather than nothing profit at all, with bitcoin it is much risky but since the price is unstable then there is a chance that you'll earn in just a couple of days/months.