What needs to happen in order for bitcoin to replace gold

[JessicaVL]

With more and more countries moving towards gold, one major question has arisen: how exactly will we measure value in an increasingly digital world, and what will take the place of the “gold standard”. Some financial analysts are suggesting Bitcoin (BTC) as the obvious replacement, but what actually needs to happen for Bitcoin to take the place of gold, and is Bitcoin (BTC) actually up to the task?

Bitcoin: the cryptocurrency Gold Standard

Bitcoin is already recognized as a kind of Gold Standard for cryptocurrencies. Bitcoin (BTC) was started in 2008 by Satoshi Nakamoto, largely as a response to the need for a new, decentralized financial system. 2008 was a pretty difficult time for the world’s financial markets – with a global recession, bank bailouts and failing economies, Nakamoto realized that the need for a currency that was not controlled by a central entity (government or bank) would change the future of the financial world forever.

Until relatively recently in human history, gold was the ultimate commodity. Stable, scarce, and divisible – gold represented everything that makes up the principles of “good money”. Societies have risen and fallen, but gold has always remained constant.

How could Bitcoin replace gold?

In the 21st century, trade is no longer being driven by a physical exchange. Bank transfers, eWallets, and now cryptocurrency transactions mean that we hardly interact with physical cash at all. Modern society is a digital society, so wouldn’t it make sense for our new “gold standard” to be digital too?

A new report by  Grayscale Investments, argues that Bitcoin actually possesses a “better composition of ‘good money’ qualities…”, almost tailor-made for the new, online economy. The report states that Bitcoin is scarce, verifiable, durable, portable, divisible, fungible and recognizable, just as gold is, only in ways that make more sense for a digital world.

With that being said, Bitcoin is still very much in its early adoption phase – it might not seem like that, but in reality, it hasn’t existed long enough to reach the level of recognizability that would be needed for it to become the new global gold standard. Bitcoin is still relatively volatile compared to gold, although it is still the most solid cryptocurrency.

Still, should Bitcoin reach the $300,000 mark, there’s no denying that it could very well become the new gold standard. And, quite frankly, a digital gold standard makes far more sense for a digital economy, than a physical gold standard does.

If you want to get really into it, here is a debate between Anthony Pompliano and Peter Schiff. If you want to really, really get into it, you can buy Bitcoin through exchanges and trading platforms like eToro, Binance or Kraken.

So, what needs to happen for Bitcoin to take the place of gold

Bitcoin needs higher adoption rates, increased stability, and an increase in value before it will truly be able to take over as the gold standard – but that’s not necessarily far off.

Considering that more than $68 trillion in generational wealth is set to change hands in the next 25 years, and the majority of the new wealthy will be millennials who are more inclined to put their money into Bitcoin vs gold, we very well might see the rise of the Bitcoin gold standard sooner rather than later.

https://zycrypto.com/what-needs-to-happen-for-bitcoin-to-take-the-place-of-gold/

[1715579974]

1715579974

[1715579974]

1715579974

[Red-Apple]

to "replace" something you have to be in the same category as that thing. bitcoin is a currency while gold is not. so it can never replace something that is not even similar to!
not to mention that the purpose of bitcoin has never been to replace anything in the world. it was always to offer the alternative decentralized payment system that nobody could control or shut down ever.

[FlightyPouch]

Ok. So let's say bitcoin did replace Gold and now we are having a price dump. If we will all be replacing gold reserves to "bitcoin" reserves, then it will all be falling down. Another thing, it can still be manipulated by a whale, and since bitcoin replacing gold is a big thing, we are not just talking about "whale" but "whales".

[teosanru]

I think this could turn out to be another Bitcoin vs Gold thread but the reality is replacement of Gold can be a precious metal not a precious set of codes used as currency. Bitcoin is a currency and it's power is in sending the money immediately anywhere around the world with anonymity and enhanced security by almost no intermediary. While gold is nothing but a precious metal used to make ornament. I think your comparison with gold comes due to the fact that gold has been used as a standard of money in history but Bitcoin can never really be used for that as it's demand would fall if it's not used as a currency which is what it was created to be.

[Mandoy]

Bitcoin cannot replace gold. Bitcoin can replace fiat currency far off in the future but it can never replace gold. Gold has existed since ancient times and has existed up to today. Gold has proven itself for thousands of years to have a value and a symbol of wealth. Bitcoin is a digital gold but not real gold. In terms of disaster when all electric lines are cut off when internet connections is out of reach bitcoin cannot be accessed but gold can. Without government, without electricity, without computers gold will continue to exist and thus it can never be replaced by bitcoin. But I love bitcoin and I wish that the time will come when the price of bitcoin will be stable and that instead of US dollars it will be gold that will backed up bitcoin.

[minersday]

Why will you want Bitcoin to replace gold in the first place?  I really don't understand why people will think Bitcoin has the qualities of gold and think it is the digital version of gold.  First and foremost, people should understand that Bitcoin can never replace gold because bitcoin do not have what it takes to be a real investment asset. Bitcoin is just digital currency which is fortunate to have a good market value.

[NeuroticFish]

Why will you want Bitcoin to replace gold in the first place?

Very good question. If the banks too will start hoarding Bitcoin, the amounts available for average Joe, for transactions, will become tiny. Bitcoin will remain a store of value, but no longer a coin.
And if Bitcoin price will be less volatile, they may find out that's cheaper to hold/handle Bitcoin than physical gold.

[Theb]

Replace Gold on what actually? Just in case you haven't notice Gold being used as money is long gone now, the price increase/decrease we are seeing now are just brought by people actually buying it as an investment not some kind of money they will use in transactions. Bitcoin is on a different playing field which Gold isn't really a part of. They don't compete which other and the only thing they share is people buying them as a form of investment. Gold isn't a threat to Bitcoin's growth.

[ChrisPop]

Your statement is pretty much right. The factors that will contribute to Bitcoin being a store of value are adoption, a lower volatility aka stability and of course we won't have that until Bitcoin reaches much higher heights. Personally I don't see it being a stable currency before the $1M mark because there are only so much BTCs to be mined. Considering that 4 million have been lost, we're left with around 17M for the entire planet. Statistics show us that there are over 36 millionaires in the world, but what about governments instituting reserves in BTC or big companies? Would they get only 1 BTC? Of course not.. That leaves us with a huge discrepancy between supply and demand balance. That's the main fundamental factor that makes me very bullish on BTC at these prices. I don't even consider GOLD to be a "standard" anymore.. It is just a metal with no portability and is only useful at jewelry and chip making..

[Edraket31]

I don't think this is a good idea for all of us, we should not compare Bitcoin to gold as gold has been part of our history and has a real value in this world, we should just focus on how our government will handle and accept crypto so we can legalize it to create awareness to people and for mass adoption, on our part we should also introduce crypto in our friends and relatives, with this way we are helping even in a little way.

[Eclipse26]

We don't have to replace gold. It's not even the aim of bitcoin. No matter how much we try to replace gold, gold will still remain valuable to people since it was from the nature. Gold and cryptocurrency are diferent. Gold is the traditional one and cryptocurrency is the newest. In the future, crypto may surpass the popularity of gold but it doesn't necessarily mean that gold will be less valuable.

[romero121]

to "replace" something you have to be in the same category as that thing. bitcoin is a currency while gold is not. so it can never replace something that is not even similar to!
not to mention that the purpose of bitcoin has never been to replace anything in the world. it was always to offer the alternative decentralized payment system that nobody could control or shut down ever.

Yes, bitcoin can be used as currency and as investment. When we think of gold it is perfectly an asset that is valued with its global demand and years of history. There is nothing a replacement for gold, some users have stated bitcoin as digital gold which is not the reality. Bitcoin evolved as a transaction support system while gold is a physical asset and this way there is no need of replacement.

[gentlemand]

There's one, and only one, thing that'll nudge Bitcoin towards replacing gold in the near term and that's governments and central banks buying it.

Until they do that, and them doing that would be legitimising something they REALLY don't want to legitimise, the idea is a total non starter. Even then they're still fundamentally different even if they finish up claiming similar ish uses.

I have only met one person in my entire life who's owned some gold. I've genuinely never heard another person mention it as any type of option for them.

It's conceivable it could eclipse gold in market cap if it was embraced by enough real people. It would take many, many years.

[avikz]

Unless there is a nuke war inside the gold mine and all gold supplies are radiated in that process, there's no way Gold will be replaced by anything else! No matter how highly adopted the bitcoin will become or whatsoever great happens, Gold can't be replaced! That's not speculation, that's a fact!

Gold is the greatest hedge product that human race ever experienced! Let's not become over optimistic, rather be realistic!

[AniviaBtc]

With more and more countries moving towards gold, one major question has arisen: how exactly will we measure value in an increasingly digital world, and what will take the place of the “gold standard”. Some financial analysts are suggesting Bitcoin (BTC) as the obvious replacement, but what actually needs to happen for Bitcoin to take the place of gold, and is Bitcoin (BTC) actually up to the task?

Bitcoin: the cryptocurrency Gold Standard

Bitcoin is already recognized as a kind of Gold Standard for cryptocurrencies. Bitcoin (BTC) was started in 2008 by Satoshi Nakamoto, largely as a response to the need for a new, decentralized financial system. 2008 was a pretty difficult time for the world’s financial markets – with a global recession, bank bailouts and failing economies, Nakamoto realized that the need for a currency that was not controlled by a central entity (government or bank) would change the future of the financial world forever.

Until relatively recently in human history, gold was the ultimate commodity. Stable, scarce, and divisible – gold represented everything that makes up the principles of “good money”. Societies have risen and fallen, but gold has always remained constant.

How could Bitcoin replace gold?

In the 21st century, trade is no longer being driven by a physical exchange. Bank transfers, eWallets, and now cryptocurrency transactions mean that we hardly interact with physical cash at all. Modern society is a digital society, so wouldn’t it make sense for our new “gold standard” to be digital too?

A new report by  Grayscale Investments, argues that Bitcoin actually possesses a “better composition of ‘good money’ qualities…”, almost tailor-made for the new, online economy. The report states that Bitcoin is scarce, verifiable, durable, portable, divisible, fungible and recognizable, just as gold is, only in ways that make more sense for a digital world.

With that being said, Bitcoin is still very much in its early adoption phase – it might not seem like that, but in reality, it hasn’t existed long enough to reach the level of recognizability that would be needed for it to become the new global gold standard. Bitcoin is still relatively volatile compared to gold, although it is still the most solid cryptocurrency.

Still, should Bitcoin reach the $300,000 mark, there’s no denying that it could very well become the new gold standard. And, quite frankly, a digital gold standard makes far more sense for a digital economy, than a physical gold standard does.

If you want to get really into it, here is a debate between Anthony Pompliano and Peter Schiff. If you want to really, really get into it, you can buy Bitcoin through exchanges and trading platforms like eToro, Binance or Kraken.

So, what needs to happen for Bitcoin to take the place of gold

Bitcoin needs higher adoption rates, increased stability, and an increase in value before it will truly be able to take over as the gold standard – but that’s not necessarily far off.

Considering that more than $68 trillion in generational wealth is set to change hands in the next 25 years, and the majority of the new wealthy will be millennials who are more inclined to put their money into Bitcoin vs gold, we very well might see the rise of the Bitcoin gold standard sooner rather than later.

https://zycrypto.com/what-needs-to-happen-for-bitcoin-to-take-the-place-of-gold/

This will promote argument about bitcoin and gold. But Gold is a tangible currency while the Bitcoin is just a digital currency. There's a lot of difference between these two, like its value. Bitcoin is less hassle because you can send it digitally around the world. Gold is just a precious metal and just keep in mind that the Bitcoin is much easier. Although you can store both of it, but Gold is more stable in value.

[danherbias07]

I look at bitcoin as commodity/currency while gold as a commodity only.
Maybe before they really use it like a currency to trade for goods but it is more like a barter exchange.

Now is a different era as you said it.
We are living in a world where it is like difficult to live without the internet specially when you are in the city.
They have created payment methods thru the internet but it is still the USD which is mostly preferred.

There is a need for a change. The merchants needs to come in and be part of it first but how?
They are risking their money for something with a value that moves too much.
That had always been the problem.

[Dreamr]

I think only the mass adoption of bitcoin by the people will help bitcoin replace the gold. People like bitcoin also, the only problem that makes people shy about bitcoin is the price volatility and lack of proper bitcoin regulations. I think for bitcoin to get mass adoption by the public we are going to need a bitcoin price regulations.   

[pawanjain]

It would only become a disaster if gold is replaced by bitcoin or we can say a financial crisis is to happen for sure in this case.
A lot of people hold thousands of bitcoins and hence it would make them super rich and it would become easy for them to manipulate the market or lets say gamble with thousands of lives. If gold needs to be replaced by bitcoin then bitcoin will first have to become truly distributed among the people.

[dothebeats]

Not just the price alone can help bitcoin replace gold. One must take into consideration the amount of support bitcoin needs to have in order to keep the fire burning and to have it replace gold completely as a store of value. It can always be valued into something incomprehensibly crazy but if only a few people and governments believe in that value, it is actually nonsense and serves little to no weight to the rest of the world. Gold stayed not only because of its scarcity and value but because people even in the olden times believed in its properties, like we are until today.

[Mike Mayor]

Why do you want bitcoin to replace gold though? To be a gold standard? I only think of bitcoin like gold because of how it is mined and how you already described it "scarce, verifiable, durable, portable, divisible, fungible and recognizable"

I think it is more of a hybrid currency. It is like gold but can be divided up into small parts and send digitally.

I think only the mass adoption of bitcoin by the people will help bitcoin replace the gold. People like bitcoin also, the only problem that makes people shy about bitcoin is the price volatility and lack of proper bitcoin regulations. I think for bitcoin to get mass adoption by the public we are going to need a bitcoin price regulations.   

Price regulations like what? I think you right, all of the people I have spoken with about bitcoin sat they afraid to lose too much money since it is so volatile. But I'm a believer so I will use it no matter the price.

Not just the price alone can help bitcoin replace gold. One must take into consideration the amount of support bitcoin needs to have in order to keep the fire burning and to have it replace gold completely as a store of value. It can always be valued into something incomprehensibly crazy but if only a few people and governments believe in that value, it is actually nonsense and serves little to no weight to the rest of the world. Gold stayed not only because of its scarcity and value but because people even in the olden times believed in its properties, like we are until today.

I ask the question.... Why does it need to replace gold to begin with?