Bitcoin, Gold or Money?

[BUK2016]

Bitcoin is more like a gold. The operation of Bitcoin is liken unto the system be adopt by gold which price can fluctuate either on  a high side or low side. The usability of Bitcoin has not be realize to be use like the fiat currency and it supply is limited.

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[chrisculanag]

All of that is very important and uses in different situations , but if we talk about the profit and  the uses bitcoin is very good . You can use to transaction such as trading , buying online , investment and many more. But don`t estimate gold because its good for long investment.

[hahay]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

Therefore bitcoin is not a currency but rather a valuable digital asset. If bitcoin is made into a currency then I don't think it will have a high value, but if bitcoin continues to be an asset like gold, I am very sure the bitcoin exchange rate will continue to increase even we know the price of bitcoin is higher than gold, maybe in the future not money that was replaced by bitcoin, but gold was replaced by bitcoin after many gold investors switched to investing in bitcoin.

[Halmater]

Investors' profiles of bitcoin and gold are very different and their expectations determine fluctuations. Comparing bitcin and gold makes no sense right now. Let's say that bitcoin value will always rise and it means that demand will continue to increase. The price of bitcoin depends of the market demand, there's no guarantee that the demand will rise and everything may change in a minute on crypto market.

[Wowcoin]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

In my situation right now Money because I don't have such in my hands right now. The second is gold since Gold is now worth something to hold for than with any crypto , and a lot of people are now using it. The third is crypto or Bitcoin.

Yes money is the first we want because this is we used every time we want to buy. But bitcoin can use also by cash it out then buy a goods. Gold is an popular one that the value its good and we can hold it for many years we want.

[timerland]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

Bitcoin is not engineered to appreciate in value. It's supposed to hold its value in the long run.

In that case, then yes, bitcoin has many characteristics that gold also has as a store of value. The nominal value of bitcoin may go up in the long run but I believe that the purchasing power should remain relatively the same due to the fact that fiat is constantly depreciating.

And even though bitcoin is always inflationary, you're right about the fact that it'll reach deflationary status at some point due to lost coins outweighing the speed of new coins being minted at. I also agree with the fact that bitcoin is unlikely to replace fiat currency, but rather be used as an alternative and potentially serve a niche market of people who want to facilitate global transactions or simply want a safe haven to store wealth in. But I disagree that bitcoin can't be used as a currency simply because its supply is capped, I don't see that as a barrier.

[Gabali126]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

I totally agree with you. In fact, bitcoin should be used to store wealth the same way people keep gold as measure to store up their wealth.

[Reid]

Way different that gold. See some threads here and it was discussed for like 50 pages and still would not come up with a better solution to compare the two.

I guess it will depend on the user. For me it is a currency. I have been using it to pay for my real estate monthly bill although it goes thru a third party company it is still cool that it is already that acceptable for them.

If one user looks at it as commodity then it will get a little deeper since we can see commodities now behaving like fiat also.

I will stay with bitcoin if someone makes me choose to the three that you have mentioned.

[aoluain]

yes, bitcoin is like gold, but it is very different because the value of bitcoin fluctuates and gold is stagnant,

Gold is one of the most liquid and developed markets in the world, of course it's stable/stagnant. Bitcoin is no match for Gold in that regard, where on top of that, it's an asset that has been around for thousands of years versus an asset that has been here just for a decade. Bitcoin needs time. It will be up there eventually.

I also think that bitcoin cannot be used like ordinary money because the amount is limited and its growing community will make its value continue to increase.

If you think in Satoshis, there is plenty of juice for everyone using Bitcoin, regardless of the price. Isn't it cool to have money that increases in value instead of fiat that keeps losing value?

Great post among others on this thread, simple to understand and positive for the future.
For the last 6 months or so i have been thinking about and adding both Gold and Silver
to my holdings to compliment my bitcoin and litecoin. What a great spread they all make.
Some which are proven as per 1Referee's post and the others with a positive future for
snyone who is interested. The rest can struggle on with FIAT.

[goldengold5]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

i will choose Gold as it is more stable and have good value.

[rikybrosh]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

Gold and bitcoin is only similar with bitcoin in term of characteristics, bitcoin don't have intrinsic value but what makes it worth is the decentralization nature, so bitcoin is like one quick way to escape from fiat system that make most of us poor. Gold has the intrinsic value not only because it is precious metal but also gold is needed to make some electronic component.

[andriarto]

yes, bitcoin is like gold, but it is very different because the value of bitcoin fluctuates and gold is stagnant,

Gold is one of the most liquid and developed markets in the world, of course it's stable/stagnant. Bitcoin is no match for Gold in that regard, where on top of that, it's an asset that has been around for thousands of years versus an asset that has been here just for a decade. Bitcoin needs time. It will be up there eventually.

I also think that bitcoin cannot be used like ordinary money because the amount is limited and its growing community will make its value continue to increase.

If you think in Satoshis, there is plenty of juice for everyone using Bitcoin, regardless of the price. Isn't it cool to have money that increases in value instead of fiat that keeps losing value?

Great post among others on this thread, simple to understand and positive for the future.
For the last 6 months or so i have been thinking about and adding both Gold and Silver
to my holdings to compliment my bitcoin and litecoin. What a great spread they all make.
Some which are proven as per 1Referee's post and the others with a positive future for
snyone who is interested. The rest can struggle on with FIAT.

be happy, because for the past 6 months you have invested in gold and silver. During that time the BTC price has dropped to date. although both are good for long-term investment, gold and silver are safer

[ellehcar]

Bitcoin is unique in a sense that it combines the features of gold and money. It has huge potential to handle huge payment operations like paper money, at the same time that it is also a very good investment like gold. I don't know how far this financial crisis in the crypto market will go (which is common in any market), but I believe that bitcoin has yet to prove itself. It hasn't reached its full potential yet and there are still a lot of rooms for its improvement. Once all its issues are resolved, its price will spike, making it a very good investment.

[Indrawan77]

Yes I agree that bitcoin is more alike with gold for now, it got a limited supply, bitcoin is the combination of money and gold, it can be used as currency and as commodity, but for now its more famous as a commodity, if bitcoin being implemented by many people then it can be a very useful thing

[cindygirl]

You're right, bitcoin's deflationary nature means that present spending is more expensive than future spending.

I'm no economist, but I don't believe that statement is true.  Yes, bitcoin is limited in number, but that's no guarantee whatsoever that it's going to keep increasing in price.  Hell, the purchasing power of the bitcoin I own has decreased by about 10% since last week, and I think altcoins have suffered even more.

It's deflationary by nature, in that if the demand keeps increasing the value of it will continue to increase due to the limited supply. Most other currencies have a ever increasing supply so the value keeps to decrease. I was not stating that the value will increase indefinitely, because it's conditional on the demand.

[cellard]

So Bitcoin is designed so that the value of it will increase over time as opposite to traditional money in which the value of it will go down. But won't that make it more like gold instead of actual money?
By the prices of stuff going up in traditional money, it encourages keeping the goods and trading them, for example if someone owns a house that house's value won't just go down with time, it can go through time. But if goods were to keep getting lower in prices then it can as a result discourage buying them and trading. Which makes Bitcoin unusable as money. To keep your money safe of course you can store in a bank as they give you a small amount of interest.
Bitcoin has a limited supply and as time goes by and its popularity increases the prices can go higher and higher, making it less effective to be used as usual money. Imagine how would a shop keeper feel as their good will only decrease in price. And like traditional money which has banks Bitcoin doesn't offer much solution to this.
So even if bitcoin prices were to stabilize, wouldn't it be more like gold than a currency to use like traditional money? Gold is very similar in those terms to Bitcoin.

No,Bitcoin isn't "designed" for that.There's no guarantee that the bitcoin price will increase over time.
The price of bitcoin depends of the market demand for btc,there's no guarantee that the demand will rise.
The limited supply of BTC doesn't mean anything,because bitcoin can be divided into 1M satoshis.
Just read Satoshi's original whitepaper and don't ask questions that are already asked 1000 times.

Even satoshi said here in the forums that bitcoin will either be worth "a lot" or nothing at all in the future. So far he was right, since it only keeps going up long term.

Bitcoin is not a currency, it's more like gold. The only way that bitcoin can be used as a currency is if the entire world uses bitcoin or at least the most relevant economies. So when 1 BTC = 1BTC there's no need to check it against fiat currencies.

Until that day comes, Bitcoin is a better gold, and therefore undervalued at all times for as long as it's marketcap is less so than gold.

[Sadlife]

Of course i'll invest money on crypto currencies rather tha. the traditional gold or fiat because despite bitcoins volatility it enables many traders and investors to gain more of course there's risk but it's way better than the stagnant way of investing such as gold and fiat resources.

[3acaga]

Gold will continue to prevail over Bitcoin and fiat money.
Gold is what people want and can use, and this is a critical characteristic of the medium of exchange. Gold is very convenient to use as money.

[nebiki]

bitcoin in my opinion is like gold but in the digital world because bitcoin can be exchanged for any currency in each country so that it can be used. and bitcoin is my most dependable investment because of its highest price and ease when holding it.

[ned.ryerson]

Bitcoin is called gold because it is limited in its quantity and is the most strong tool in the cryptocurrency market. And as in the classic financial market, all investors always prefer to keep the biggest part of their capital in gold, people also prefer Bitcoin in cryptocurrency