BITCOIN AS A DIGITAL GOLD

[George Alex]

BITCOIN AS A DIGITAL  GOLD

CRYPTO BUSINESS

Nearly Bitcoin referred to as a digital gold start from last year but 2019 when vocubarly became much more realistic. In fact, the idea of Bitcoin as digital gold became so prevalent in 2019 that U.S. Congressman Brad Sherman (D-CA) claimed the crypto asset may be a threat to the U.S. dollar’s dominance in the global economy.

At January of 2020, the similarities between Bitcoin’s and gold’s price movements around increased due to tensions between the United States and Iran did shift the price of gold and Bitcoin, However, longer-term measurements of the correlation between Bitcoin and gold still indicate there is a very little correlation between these two assets.

The digital gold use case is often referred to as Bitcoin’s core value proposition, so a closer correlation with physical gold could indicate a greater level of understanding and acceptance of this point from market participants. Additionally, the introduction of central bank-issued digital currencies could clarify the value proposition of something like Bitcoin in the minds of the general public.

How strong You support the Ideal?


More check on:: https://bizzysumbi.blogspot.com/2020/02/bitcoin-as-digital-gold.html

[bgaf]

We could say digital gold is btc alternatives. But bitcoin has no physical asset and consist only of digital but has immensely got some fair value. If you would noticed both are limited in supply like btc max supply only to 21million while gold is a naturally occuring mineral which also can be conserved as thr process of producing is limited to countries potential resources. If this in the future got depleted more, imagine its price value due to scarce. The only difference of two are its use case which gold preserve more advantages since it can backed up some currency such as US unlike btc which still got some issues.

[vermigerous]

Bitcoin has compared to gold in terms of its value, that's why many says it is the digital gold because of its popularity and the most high valued coin in the crypto market.

[Strongkored]

The view is obtained because they see that Bitcoin is as valuable as gold, and also there are similarities among others, one of the ways to own it can be by mining. But there is a striking difference between the two, namely BTC is limited while gold is practically unlimited because gold mining has been ongoing for a long time. I don't think it's urgent to be told or explained, people have their own views.

[elisabetheva]

The view is obtained because they see that Bitcoin is as valuable as gold, and also there are similarities among others, one of the ways to own it can be by mining. But there is a striking difference between the two, namely BTC is limited while gold is practically unlimited because gold mining has been ongoing for a long time. I don't think it's urgent to be told or explained, people have their own views.

what our colleague said above is very true, the only difference is that the price attached to them is very different. maybe we know the price of gold depends on the dollar but bitcoin can not be determined situation, bitcoin can go down drastically and go up as well.
profits certainly can't be compared, bitcoin needs analysis if you want big profits.

[Assface16678]

We could say digital gold is btc alternatives. But bitcoin has no physical asset and consist only of digital but has immensely got some fair value. If you would noticed both are limited in supply like btc max supply only to 21million while gold is a naturally occuring mineral which also can be conserved as thr process of producing is limited to countries potential resources. If this in the future got depleted more, imagine its price value due to scarce. The only difference of two are its use case which gold preserve more advantages since it can backed up some currency such as US unlike btc which still got some issues.

One of the fastest-growing markets today is with the use of cryptocurrency and one of the most popular is the bitcoin. Now it gives a huge market income to the community why it gains a lot of income. Many people make an investment in it today because they see the potential of this coin to have a good profit when the price goes up. We have two sources today which is the fiat currency or the physical money and the gold both of the prices of those are profitable but today the bitcoin shows and facing the gold today. There are some people stating that the bitcoin can be substitute with the gold but I think it is better if we use the bitcoin or cryptocurrency as a third source even the price of it is volatile because of the trading and transaction with the use of it all around the world.

[kawetsriyanto]

Bitcoin has compared to gold in terms of its value, that's why many says it is the digital gold because of its popularity and the most high valued coin in the crypto market.

Yes. Not only about it, but people also say that Bitcoin is a digital gold since it is the safest coin for investment in cryptocurrency. Can we find the most recommended coin besides Bitcoin? In my opinion, no. Bitcoin is perfectly the most recommended coin to invest in. Even if the value is very volatile, it is always showing people about potential profits.

[LUCKMCFLY]

There are many articles that are ensuring that the new digital gold is Bitcoin, especially for its behavior as a safe haven for many people in countries with high inflation and very large problems such as China with the epidemic. All this also influences the behavior that they have in a similar way between gold and bitcoin, both at this time rise slowly, but maintain a type of trend.

[Tylev]

The view is obtained because they see that Bitcoin is as valuable as gold, and also there are similarities among others, one of the ways to own it can be by mining. But there is a striking difference between the two, namely BTC is limited while gold is practically unlimited because gold mining has been ongoing for a long time. I don't think it's urgent to be told or explained, people have their own views.

In addition to great value, bitcoin has very little resemblance to gold. You could even say that these are completely different financial assets. When they talk about gold,  always mean, above all, its other price stability. Bitcoin in this regard is completely opposite, since it has the highest price volatility. This is a big drawback and at the same time a great advantage of cryptocurrency, as it allows traders to receive high profits in any market condition.

[julius caesar]

The acceptance of the other government to the cryptocurrency is not like how they accept gold. They do not really understand how bitcoin works that is why they do not want to accept it as a part of their economy. They are afraid because they think that it will replace their main fiat money, but little did they know, it will for surely gonna boost their economy by the help of crypto.

[Leonardo7]

Gold is regarded as a very valuable investment that has survived a bad economy over the years and maintains a steady growth beating inflation. Gold is a physical value that can be touched and physically used. But bitcoin is a virtual digital currency that can be seen but can't be touched, which is been used over the internet. My few time of stay at this market made me believe bitcoin is more profitable than gold but much more volatile than the gold as the market is still new when compared to gold and other precious metals. It's even more valuable than gold, has a quicker and a better return with less technical knowledge to buying/selling it. Hence the name digital gold.

[freedomgo]

Both, digital gold and digital payment at the same time, that makes it unique compared to gold since we can't use it easily for online transaction, bitcoin is a kind of innovation that the world needed as the government are now becoming expose of their corrupt practice and the our fate might not be good if we continue to trust the government.

At least when we are investing in bitcoin and using it for digital payment, every thing is transparent, and what we need is real adoption in order to see a market stability.

[Shallow]

Everyone or rather a good number of people knows and will agree that Bitcoin is the digital gold. Think about it, it was tried, passed through tough phases and yet the main idea of which it was created for still stood up till today. Gold is something that is valuable and because Bitcoin is used in the digital world as well as being valuable, I will vividly call it a Digital Gold. Furthermore, for Bitcoin to be seen as the future of the crypto space means it has achieved a good level of trust, which still attributes to the fact that, it is a digital gold.

[salamat700]

It is quite a popular notion in the cryptocurrency industry that Bitcoin is the digital gold. Maybe because there is that wish/hope/pray that Bitcoin can be functioning as the gold counterpart when it comes to storing value. However, there are also people who are not convinced on this aspect. Its volatility alone may make Bitcoin not comparable to gold which has had been steady (though increasing also) for many years. Gold is considered as a safe haven while many are doubting if Bitcoin should be classified as such. Gold can be boring but Bitcoin is perennially exciting maybe right from the beginning. Whether it can be officially said that BTC is the digital gold, maybe we should reserve the answer to that question on its 20th year anniversary.

[matan]

Bitcoin as a replacement for gold is possible. But if you're talking about digital gold it's Xaut

[juvo_3]

I seem to not like the idea of creating these secondary classification names for the core protocol of Bitcoin. The Bitcoin protocol has certain parameters of operation which are dynamic. And its applicability to any application is dependent on these parameters. Consider the following parameters of the Bitcoin Protocol:

• Transaction fee: dependent on the volume of transactions in the pool
• Puzzle difficulty: dependent on the hashing power of the network

These parameters are also functions themselves. But they are more complex social functions. The transaction fee is dependent on the amount of people that are transacting on the Bitcoin Blockchain and the Puzzle difficulty is game theoretically dependent on the profit per block. profit per block is dependent on the transaction fees in a generated block, block reward volume and bitcoin market price. Market price determination is a social phenomena.

To me, the core functionality of Bitcoin is the ability to validate that something happened (i.e. an Event) and everyone has consensus on this Event as truth. This all occurs without a third party authority. What that event is, could be anything. A transaction of BTC, transaction of some asset title embedded in the transaction message, etc. I think the keyword is transact.

As the parameter values for the protocol change, then the applicability of the base bitcoin protocol to certain applications will become more or less viable. So maybe in this current social context Bitcoin may function as digital storage of value.

But I propose that we imagine a time where the cost of transacting on the blockchain is so expensive that Bitcoin doesn't serve well as a storage of value. In this scenario, the transaction fees are so high, to shift the value from one place to another viably would require shifting large sums of BTC. Now, hypothetically, Bitcoin could be more suited to storing, on ledger, commitment type transactions (e.g. Countries ratifying a treaty between each other). Which interestingly enough, would only require the transaction fee amount to place the data on the blockchain and a symbolic amount to transfer between wallets.

I am not making any predictions about future use here, but just trying to demonstrate that what we believe Bitcoin will be used for is dependent on the parameter values of the bitcoin protocol, which are subject to social behavior. Social behavior is then also constrained by law, regulations, etc.


[EDIT] I would not like to downplay bitcoin's ability to participate in applications more independently of these parameters through the use of second layer protocols

[Debonaire217]

We could say digital gold is btc alternatives. But bitcoin has no physical asset and consist only of digital but has immensely got some fair value. If you would noticed both are limited in supply like btc max supply only to 21million while gold is a naturally occuring mineral which also can be conserved as thr process of producing is limited to countries potential resources. If this in the future got depleted more, imagine its price value due to scarce. The only difference of two are its use case which gold preserve more advantages since it can backed up some currency such as US unlike btc which still got some issues.

Perhaps, it would be a great idea for bitcoin to be backed by gold to make sure that the value of bitcoin will be strong enough. Though both are having similarities in characters such as scarcity, gold could not be directly compared to bitcoin but we could think of it as an alternative to the digital world. In the end, I still consider gold as more valuable when fiat money system breaks because it is tangible, and this characteristic is what makes it solely different from bitcoin.

Going back to OP:

The digital gold use case is often referred to as Bitcoin’s core value proposition, so a closer correlation with physical gold could indicate a greater level of understanding and acceptance of this point from market participants. Additionally, the introduction of central bank-issued digital currencies could clarify the value proposition of something like Bitcoin in the minds of the general public.

you might want to paraphrase this to avoid plagiarism or somehow quote and state this paragraph as it is directly stated from forbes.com article

It's a good start for us to research some insights to learn and to share.

[coinfinger]

We are not sure about these Central bank digital currencies that are being discussed as of recent. And as for Bitcoin being digital gold, we can clearly see that there is no correlation between the two of them. Bitcoin is completely different and unlike fiat and others, it's backed by the trust of the community and utility? But I still look forward to growth in the cryptocurrency community.

Some people have claimed that the CBDC are going to be a competition for the decentralized cryptocurrency we know now. That's because they believe the government will try to stop the use of decentralized cryptocurrencies just to get people to start making use of their own digital currencies.

[Yatsan]

Bitcoin is not the digital gold but there's literally a project that is a digital gold:

check this: https://bitcointalk.org/index.php?topic=5161544

I am looking to that project for a while and I think they are the best to give if someone is asking for digital gold. They are cryptocurrency that is backed by gold and the price is sync with the price of the gold itself.

Bitcoin can't be the digital gold since bitcoin is backed by nothing! Bitcoin is just existing because of the supply and demand and that's enough for bitcoin to be called as "cryptocurrency" 

[Gaaara]

In terms of changes it can be compared to any rare materials however would you consider gold as an investment? And there is no such thing as an investment that is too much of an trust dependent where when there's more people to invest there would be higher value. The price is frequently being driven by demand which is almost same to any product, in contradiction bitcoin loses its high value the moment a crowd started to forcibly let go of their holdings for the reason of bitcoin is more flexible in terms of transfer.