What needs to happen in order for bitcoin to replace gold

[BlackFor3st]

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/

Aside from what you have quoted, the very first stepping stone for the bitcoin to replace gold in the future is the government acceptance. Once all the government will accept and use the crypto currencies there is a big possibility that they will create a law that will make the crypto currencies or bitcoin as legal money.

After that, adoption rate will surely increase and it's value will rise steadily and it will surely create a modern society where everyone can use bitcoin in every corner of the world.

[ufaiz50]

Digital assets and goods assets, they have different benefits. Maybe in the concept they are equally valuable and have high selling points, it's just that they are in a different field. Actually I myself don't want to think of bitcoin as gold or replace it. Bitcoin is a currency not asset.

[imstillthebest]

your wish op is something that is impossible to happen for now because gold itself do still exist yet . it still trendy in terms of accesory and its still minable ( there are still some supply left for gold )  but who knows ? in the future  . what if the trend phases out and the supply of gold have totally runed out because gold on the current age is now extinct while btc supply and fame is only getting started yet  . sooner or later btc will take the lead  

[ljane]

I think mainstream usage is the best idea now. One thing that has to be done is that, Bitcoin should be used like our fiat currencies if we really want it to replace gold. This can be done in such a way that, it should be used in shopping and also payment for goods and services.

[TRONTON]

your wish op is something that is impossible to happen for now because gold itself do still exist yet . it still trendy in terms of accesory and its still minable ( there are still some supply left for gold )  but who knows ? in the future  . what if the trend phases out and the supply of gold have totally runed out because gold on the current age is now extinct while btc supply and fame is only getting started yet  . sooner or later btc will take the lead  

both are mineable with different system escalations. If the gold supply is completely used up, it will also create a higher value because of the exclusivity of demand. until whenever gold is irreplaceable because the requirement to guarantee a value is to be in physical form with controlled circulation. Bitcoin does not have this, and also because it is bidirectional regarding its use as a currency. it will create confusion when entering the regulatory stage.

[Darooghe]

Gold has liquidity, practical functions and scarce supply, but Bitcoin barely satisfies two of them. First, liquidity. Investment instruments need to be traded on a regular basis, but Bitcoin is very illiquid, and investors in cryptocurrency tend to hoard Bitcoin because they believe that Bitcoin will appreciate.

Second, in addition to being widely regarded as a kind of value savings, gold actually has a functional use ,  from the application of computer boards to jewelry and dental appliances, all have gold. But the only purpose of Bitcoin is to store it as money and value, and now it is rarely accepted in actual commercial trading rather than speculative trading. Third, Bitcoin does supply scarcity, which is a necessary part of maintaining value. it will only generate up to 21 million Bitcoins, which is written into the code from the first day it is generated.

[dimox]

actually, gold will exist until someday, maybe until the earth is gone. you cant get rid gold of, and gold will always be gold. its different between crypto, crypto cant run without network. crypto need some tool to access, and i think it can replace gold.
and in a fact, the adoption of crypto can rivaling gold. crypto is more interest than gold, easy to earn, and give more profit

[rodel caling]

Bitcoin and Gold have an different use in tge market.

Gold is a traditional psychical investment and gold is use for the passion not an currency unlike bitcoin is a future new form of anonymous money came from the new technology so need to replace gold is gold as psychical investment.

actually, gold will exist until someday, maybe until the earth is gone. you cant get rid gold of, and gold will always be gold. its different between crypto, crypto cant run without network. crypto need some tool to access, and i think it can replace gold.
and in a fact, the adoption of crypto can rivaling gold. crypto is more interest than gold, easy to earn, and give more profit

Yeah I really agre with for that statement mate rich people buy Gold to use it for the passion decorative in the body and rich people collect gold is also an investment. And yes tume has cones bitcoin is more than expensive to gold in the future but not need to compare this two kind of investment because they have an own identity and use in the market.

[DrKenobi]

I think it is not necessary and might not happen.
 Bitcoin and Gold have different uses.
Moreover, some crypto-currencies are already coming out to help me the trading if Gold easier.

 Gold has managed to survive through the medieval times, I don't think it will stop now

[Zeke_23]

I think it is not necessary and might not happen.
 Bitcoin and Gold have different uses.
Moreover, some crypto-currencies are already coming out to help me the trading if Gold easier.

 Gold has managed to survive through the medieval times, I don't think it will stop now

I tend to agree. gold and bitcoin don't need to compare with each other. They serve a different purpose and even they are both an investment tool, bitcoin is much more useful than gold. We can have an online transaction on bitcoin while in gold, we have to convert it to cash first before we may be able to use it as payment.

[Asmonist]

I think it cannot replace gold because gold and bitcoin are two different things. Maybe they will compete more on its value. Gold is a tangible asset while bitcoin is intangible asset. Both are assets with different usage and competing values. For now, bitcoin is somehow easier to get than gold since its a digital currency.

[Tylev]

It is clear to me that under no circumstances can Bitcoin replace gold. For Bitcoin to replace gold with itself, this requires a decision by most states. However, even this can never be even theoretically. Now, huge reserves of bitcoins are held by unknown persons. If states decide to replace the gold standard with bitcoin, they will actually give their economies to the management of these unknown people, who now have significant amounts of bitcoins. Are governments so stupid?
What about the high price volatility of bitcoin? How to be with her? After all, it seems that she will never disappear. Are you ready to live constantly with sharply changing prices for everything material?

[Argoo]

Bitcoin was not created in order to replace gold with itself and does not have such an opportunity for this. These are completely different, with almost incomparable financial assets. I do not even consider bitcoin as digital gold. It is also not suitable as a means of preserving value, since it has very high price volatility. And he will never grow in price forever.

[darewaller]

Bitcoin will not replace gold if you want "increased stability" it will not happen in bitcoin which has high volatility. You already understand the function of bitcoin and the reason why Satoshi created bitcoin and technology. is actually a wrong concept if bitcoin is considered an asset like gold.

I understand you that the main goal of bitcoin is to create an enabling environment where payment can be made between peers to peers easily without the interference of third party, but satoshi also knows that as demand of the coin increases, there is going to be constant increase in the value, which is why the second function of bitcoin is also to serve as asset, people can hold it while it appreciate in future.

Let us look beyond the volatility that is still present now, it will not always be like this, the coin is still highly volatile because its new and we are yet to still get to the peak point of adoption, once we get there, the volatility of bitcoin will surely reduce, making the price to stabilize which will make it to be reliable as store of value to holders.

[Kambal2000]

Bitcoin was not created in order to replace gold with itself and does not have such an opportunity for this. These are completely different, with almost incomparable financial assets. I do not even consider bitcoin as digital gold. It is also not suitable as a means of preserving value, since it has very high price volatility. And he will never grow in price forever.

Yes, they differ in purpose and I think we need both of them as a way of investment, we don't need to replace gold, as gold has been in industry for so many decades so it cannot vanish in the history. What we need now is to promote Bitcoin so people will likely to invest on it or use it in their everyday life.

[Eugenar]

Bitcoin was not created in order to replace gold with itself and does not have such an opportunity for this. These are completely different, with almost incomparable financial assets. I do not even consider bitcoin as digital gold. It is also not suitable as a means of preserving value, since it has very high price volatility. And he will never grow in price forever.

Yes, they differ in purpose and I think we need both of them as a way of investment, we don't need to replace gold, as gold has been in industry for so many decades so it cannot vanish in the history. What we need now is to promote Bitcoin so people will likely to invest on it or use it in their everyday life.

Basically what is possible to be replace is the value of gold, not literally that we don't need gold, it is not just the market price that we are getting benefits from gold, as far as I know, gold is a good conductor, and even people will not gonna have a huge demand on it, it can still be profitable when it was being manufactured by many companies in the market.

[tambok]

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.

Good explanation! Bitcoin is bitcoin and Gold is Gold! So we should not compare it because Gold is a work of nature and Bitcoin is man-made. So let's stop these issues because in any case the value of gold will not be lost, And it will continue to rise over time like Bitcoin.

Yes, another thing is that we should not focus on it, what we need is mass adoption and not eliminating gold for us to become famous as they are totally different so no need to compete with gold, as we can build our own market if we will just do our part too as a believer of Bitcoin.

[yulionoo]

gold is a precious metal that has become a valuable item and is used since ancient times until now. some people use gold as jewelry and as a store of value as well as investment. and bitcoin is a volatile digital currency. bitcoin can also be used as a store of value but if comparing the increase in value between bitcoin and gold of course bitcoin has a higher increase than gold. so in my opinion bitcoin is better than gold.

[GideonGono]

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.

It is good to say or ask if what needs to replace fiat (a money that can touch either hold) because they are the same can be used as payment while the gold was an asset only.

[gunhell16]

I don't want to see Bitcoin replacing gold as they can work together or should i say they are far different from each other.
Bitcoin can't be a piece of jewelry to use for many women who admire using it. bitcoin is a currency we need to have secretly for us to be safe while gold are displayed for the public to precious its beauty.