As long as gold exists, now so will Bitcoin

[tinopener]

As long as Bitcoin can be shown to be a hedge against gold, there will always be people who buy it.

People buy gold to hedge against equities and bonds. Gold owners have obviously started buying Bitcoin too to hedge against gold, for what it's worth. Just have a look at the graphs showing the outflow from gold into bitcoin during the media frenzy in December.

The sort of people who buy gold for investment purposes are the ones who will also buy bitcoin simply to balance their portfolio just a little bit more. They don't get emotional about it and will simply split their portfolio like this, for example:

60% equities
30% bonds
6% gold
3% cryptocurrency

[Md Saad]

I think Both gold and Bitcoin have some specific features regarding saving or investment for the future purpose, Nowadays, Gold is losing its glow in terms of price value around the world. On the other hand, Bitcoin is becoming a popular and profitable platform for saving and investment. Gold is just an element of saving or investment but Bitcoin is more than gold, It can be used for both saving and payment purpose. So that Bitcoin should give prior to Gold in this case.

[pombur]

Stability – almost the only advantage of gold over Bitcoin. But in five or ten years, when the hype and speculation dies down, and Bitcoin will become clear and familiar to a financial asset, its price stabiliziruemost. Now we can say that volatility of Bitcoin equal to the volatility of oil. Also Bitcoin is more stable than many of the assets of the S&P 500 index. At the moment Bitcoin is 5-6 times more volatile than gold, but this gap is gradually decreasing. I am sure that soon Bitcoin will be the new modern gold!

[WhichIsGood]

As long as Bitcoin can be shown to be a hedge against gold, there will always be people who buy it.

People buy gold to hedge against equities and bonds. Gold owners have obviously started buying Bitcoin too to hedge against gold, for what it's worth. Just have a look at the graphs showing the outflow from gold into bitcoin during the media frenzy in December.

The sort of people who buy gold for investment purposes are the ones who will also buy bitcoin simply to balance their portfolio just a little bit more. They don't get emotional about it and will simply split their portfolio like this, for example:

60% equities
30% bonds
6% gold
3% cryptocurrency

The correct statement should be "As long as there are people who use/buy bitcoin, it will continue to exist". Regardless of using bitcoin as a hedge to other forms of investments, ultimately, the users themselves determine it's continued existence.

[OcTA Bd]

I don't think gold and Bitcoin are same. Bitcoin slightly different goal than gold. To me, the main purpose of gold is to store it for future purpose but for Bitcoin there comes a term like investing or mining etc. So to me gold and Bitcoin are two different things. But for future betterment I would definitely prefer Bitcoin rather than gold.

[Suharti12]

It is true that they buy gold to protect from inflation rather than flat money and they also move to buy bitcoins that increase in value faster than gold, and more and more profits.

[jtipt]

Stability – almost the only advantage of gold over Bitcoin. But in five or ten years, when the hype and speculation dies down, and Bitcoin will become clear and familiar to a financial asset, its price stabiliziruemost. Now we can say that volatility of Bitcoin equal to the volatility of oil. Also Bitcoin is more stable than many of the assets of the S&P 500 index. At the moment Bitcoin is 5-6 times more volatile than gold, but this gap is gradually decreasing. I am sure that soon Bitcoin will be the new modern gold!

Along with stability gold also has that advantage of being old. Gold is one of the first asset of human civilization. I always think comparing gold with bitcoin is wrong, even more wrong to call bitcoin gold 2.0 or modern gold. While having some similarities, gold and bitcoin are a lot more different.

[pawel7777]

As long as Bitcoin can be shown to be a hedge against gold, there will always be people who buy it.

You fail to explain the logic. If gold is a hedge to stocks/bonds, than stocks/bonds are a hedge to gold. So you already have a hedge.
Investors may be spicing-up their portfolios with cryptos, but that doesn't mean that existence of gold guarantees the existence of Bitcoin.
Plus, in your own portfolio-split example, you didn't put "Bitcoin" but "cryptocurrency". These are not synonyms. Even if gold, in some magic way, warrants the demand for cryptos, it doesn't mean that Bitcoin will survive, it can be replaced with other coin.

60% equities
30% bonds
6% gold
3% cryptocurrency

You're missing 1%.

[HeRetiK]

[...]

People buy gold to hedge against equities and bonds. Gold owners have obviously started buying Bitcoin too to hedge against gold, for what it's worth. Just have a look at the graphs showing the outflow from gold into bitcoin during the media frenzy in December.

[...]

While Bitcoin may share some use cases with gold I highly doubt that the overlap of gold bugs and Bitcoin hodlers is quite that big yet.

Besides, where the hell do you see "an outflow from gold into bitcoin"? The gold price has barely moved last year. It actually has slightly risen since the beginning of 2017. Apart from a small dip the gold price has risen during most of December.

So I'm sorry to say, but cryptocurrencies are not quite there yet. Bitcoin might become a more widespread alternative to gold in the future, especially for a younger generation of investors, but we still have ways to go and a certain amount of price stability to reach.

[ikilledcobain]

Not sure I agree with your premise - but I hodl some precious metals and crypto. The reason I don't just dump it all into crypto is because although highly unlikely, the internet could always go down. That's the weak point of bitcoin and cryptos. My krugerrands aren't digital, lol.

[Laurayaki]

comparisons are useless, gold will always exist, it is physical ..

[nick_nick]

I think Both gold and Bitcoin have some specific features regarding saving or investment for the future purpose, Nowadays, Gold is losing its glow in terms of price value around the world. On the other hand, Bitcoin is becoming a popular and profitable platform for saving and investment. Gold is just an element of saving or investment but Bitcoin is more than gold, It can be used for both saving and payment purpose. So that Bitcoin should give prior to Gold in this case.

I strongly agree with you. Both gold and bitcoin has some common traits; but I think bitcoin should be given some priority over gold because it is more liquid in terms of payment transactions as compared to gold

[Xavieroz]

I can not see the gold market and the bitcoin market in the same way, both are assets of different approaches and ways of use. But I agree with the fact that investors always look for a way to balance their investments and somehow safeguard the profits, that is, they do not totally invest all in bitcoin or gold, divide the investment in case one of the two does not have a rise as stipulated. It is the strategy that many manage, similar to the one we manage the ones we invest in altcoins.

[Kprawn]

Gold bugs are not necessarily Bitcoin or Crypto currency investors.  A lot of Gold investors are invested in physical Gold

coins, because they want full control over their investment. {It gives them some sense of security} ... So you will not easily

change their position on this. {believe me I tried, they are very stubborn and conservative investors} These people are still

traditional investors in physical items.   

[jona]

Humans are never satisfied anyway and good investors  do not miss chances of investing that is why they are also investing on Bitcoin to balance their equations of investment.

[maryhansenn]

Bitcoin will be more powerful than the gold. Gold is now stable but soon bitcoin will be wanted by everyone

[francedeni]

Bitcoin will be more powerful than the gold. Gold is now stable but soon bitcoin will be wanted by everyone

We cannot compare gold and bitcoin, gold has its phase to exists. Bitcoin will be bitcoin as long the demand will continues to exists. The community for bitcoin will be bigger daily so bitcoin will continue to grow and will exists longer.

[Xenrise]

I don't get the logic in which bitcoin is being compared to gold. Gold is a physical asset in which you can really hold physically. And bitcoin is an asset but you can't hold it physically, only on the internet. But it is minable with the use of technology only. Why do we need to compare these two things? Both have different function in this world. But the other one is better, which is bitcoin.

[1Referee]

Bitcoin will be more powerful than the gold. Gold is now stable but soon bitcoin will be wanted by everyone

Bitcoin has been far more powerful as tool than Gold for years now. The only advantage Gold has over Bitcoin is its physical form. In terms of the open market, Bitcoin has a lot to learn and catching up to do. Gold is one of the most liquid markets in the world, where Bitcoin is probably one of the very few markets with the least available liquidity, and this needs to change. It'something this market has been dealing with for years now, and it has improved a tiny bit throughout the years, but that's not enough, especially if you want to diminish the heavy volatility. Considering that professional capital has other ways of entering, it will probably take a long while before the level of liquidity improves significantly.

[nsasuiteb]

I think if one diversify its portfolio in such a way, then I think cryptocurrencies are very worthy investment. Bitcoin is better than gold to me, it will rise for sure.