Why BTC is digital gold?

[laredo7mm]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

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[Upgrade00]

Gold is valuable because it's rare and has a limited supply.

Neither Bitcoin or gold is rare, anyone who wishes to can purchase a Bitcoin or a fraction of it, same goes for gold. Even if it were rare, that is not where its value comes from. A product which is valued solely based on how many people can access it is a bubble and would eventually burst, similar to the tulip mania.
Both Bitcoin and gold have qualities which makes each unique and they are also quite different. The depiction of Bitcoin as the digital form of gold is just a phrase, doesn't potray similarities.

... we can say Bitcoin is digital gold.

Bitcoin is Bitcoin

[bekti3]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

I agree that they both have the same nature. although the difference is no less important. where the price of gold is much more stable than bitcoin. then in terms of market demand, Gold is more diverse than Bitcoin. The reason is, there are only two uses of Bitcoin, namely for payment instruments and investment assets (speculation). Gold is actually more than just an industrial sector, both jewelry and electronic devices. then in terms of manufacture, bitcoin is made using computers and software, while gold itself is a natural resource.

[hatshepsut93]

This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society.

Do you know a lot of stores that sell eggs or flour for gold or Bitcoin?

Gold is valuable because it's rare and has a limited supply.

If you think that it's enough to qualify as digital gold, then Pokemon trading cards are also digital gold. Or World of Warcraft's currency.


People call Bitcoin digital gold, because they want to make an argument that it's a hedge against inflation. The problem is, Bitcoin is not showing any good correlation with inflation or other macroeconomic indicators, it's completely unpredictable. The main point of a hedge is to act predictably under some circumstances, and Bitcoin still can't do that.

[biosupdate2020]

Bitcoin, like gold, are sound investment instruments because they represent a "safe have" when traditional market turmoil arises. Money moves, and like gold bitcoin is an excellent storehouse for wealth. That is if you can stomach the volatility but I suppose with more adaption it will be seen as even safer as gold.

[wheelz1200]

This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society.

Do you know a lot of stores that sell eggs or flour for gold or Bitcoin?

Gold is valuable because it's rare and has a limited supply.

If you think that it's enough to qualify as digital gold, then Pokemon trading cards are also digital gold. Or World of Warcraft's currency.


People call Bitcoin digital gold, because they want to make an argument that it's a hedge against inflation. The problem is, Bitcoin is not showing any good correlation with inflation or other macroeconomic indicators, it's completely unpredictable. The main point of a hedge is to act predictably under some circumstances, and Bitcoin still can't do that.

I agree mainly with your arguments.  One of the attributes I like with bitcoin over gold is the known total and circulating supply.  We can never really understand golds max supply as well as circulating supply.  The details are more comfortable with me knowing the parameters of all aspects with supply.  Although there are "forever lost" or burned coins, we still know the top end of those supply numbers.

And yes I can certainly use bitcoin at various places, alot more than I can gold.

[CODE200]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

I doubt these attributes are enough to explain why Bitcoin is considered to be a digital Gold. And I doubt there's really an explanation to subjective labeling of something. People may compare it to other things in the market but they chose Gold simply because of its idea of being profitable, right? Which is not valid in the first place. Gold is indeed acknowledged to be a good investment and was/is also being used in the trade of goods before or maybe up until this point into some areas. The linkage between Bitcoin and gold is "profitable investment" and "mode of payment". What makes it hard to explain is that, there are other things which are having the same "characteristics" but why Gold?

[CarnagexD]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

bitcoin is gold to us because it is endowed with value. Nothing more, nothing less. It doesn't have any striking capabilities given its intangibility when compared to gold, with its long history of use and value that outdate even our ancestors ancestors. The same goes for gold, hadn't we thought that gold is valuable in the first place, we wouldn't endow it with value no matter how useful it is. So what's going on here really is the paradox of value.

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

I doubt these attributes are enough to explain why Bitcoin is considered to be a digital Gold. And I doubt there's really an explanation to subjective labeling of something. People may compare it to other things in the market but they chose Gold simply because of its idea of being profitable, right? Which is not valid in the first place. Gold is indeed acknowledged to be a good investment and was/is also being used in the trade of goods before or maybe up until this point into some areas. The linkage between Bitcoin and gold is "profitable investment" and "mode of payment". What makes it hard to explain is that, there are other things which are having the same "characteristics" but why Gold?

exactly. It is profitable that's why people are into it. There's nothing too explain anymore. It's a cash cow for many of us and bitcoin, being valuable in and of itself, is also regarded and recognized as something that holds significant value. Too rare do humans endow something with a value based on their benefits to society and when we do, we jack the price down to cater to the greater public, either as an altruistic manner of giving to the greater mass or as a way to earn more customers.

[concept2]

I have a question for you: how can we determine gold? After all, is is just a name which human create for an object. And over a period of time, it has been raised and adopted by human as one of the most valuable asset on the world

Same thing is happening to bitcoin. We use digital gold to name bitcoin which makes it becomes even more valuable.

[arwin100]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

Because it determine as valuable digital asset which the same with gold that's why many people named it as digital gold especially these days where bitcoin gather attention and hype.

Labelling it as digital gold is for me not so important thing since we know bitcoin and gold have different use and the profitability between these two is different but many compare the two in terms of profitability and there's a lot of discussion or debates towards these so expect you cannot get the correct answer since all post here will be based on their personal opinion.

[The cure]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

For me we can consider Bitcoin is a digital gold because of it's ability to be used even though we can't touch it typically that's why we called it digital. But in terms of it's value Bitcoin is one of the most valuable investment today, and because of the pandemic happened to us, more people are starting to adopt Bitcoin and see the potential earnings to it.

[Lorence.xD]

Bitcoin gold is just a name that stuck over time. It is comparable to rarity and difficulty to obtain must be the reason that they coined it that name. I do not agree with gold being limited in supply, it is just that the more we get the more it incrementally becomes difficult to obtain, there is obviously a limit in gold supply but the universe is expanding so virtually there is no limit to gold.

[lobcmt2]

Bitcoin is better than gold. You can call it as digital gold or anything but at the end it is bitcoin and I think it is enough to call it as bitcoin. Why do we have to compare bitcoin with gold and try to use a fake name digital gold for bitcoin?

Bitcoin has a public ledger, a public total supply and scheduled halvings in block rewards. The Bitcoin block reward chart from Bitcoin visual. Every halving, more people will hear about bitcoin and adoption will rise that result in price growth to a new era. Bitcoin Halving, Explained.

You don't know how many gold are there on our planet? No halving with gold. It is enough to not compare gold and bitcoin.

[Tushar Ramani]

Why do people invest in gold? A secured investment with physical custody, right?. Correct me if I am wrong. Gold has provided a good ROI over years but when it comes to its supply, it is out of investors' hands. It is kinda centralized. Now if we talk about bitcoin, it has provided a better ROI? It will become more than just digital gold because of its limited supply. Once 21m BTC are mined, Hyperbitcoinization will be a factor to make Bitcoin reach 6 figures.

[Mauser]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

The thing about Bitcoin is that everybody knows about it. If you speak to someone who has no clue about crypto currencies, he will at least have heard about Bitcoins before. It all depends on the market awareness in my opinion. The more people heard about it, the higher the value of a coin. 

[exstasie]

Neither Bitcoin or gold is rare, anyone who wishes to can purchase a Bitcoin or a fraction of it, same goes for gold. Even if it were rare, that is not where its value comes from.

Of course it is. Something that is widely demanded but scarce in supply (like gold) has high value. Something that is widely demanded but plentiful (like iron) is cheap. The reason for that is scarcity.

People call Bitcoin digital gold, because they want to make an argument that it's a hedge against inflation. The problem is, Bitcoin is not showing any good correlation with inflation or other macroeconomic indicators, it's completely unpredictable. The main point of a hedge is to act predictably under some circumstances, and Bitcoin still can't do that.

I'm not sure about all that. Is it actually true that Bitcoin doesn't negatively correlate to inflation? Either way, I don't see that as a requirement for people to treat BTC as an inflation hedge. I wouldn't call it completely unpredictable either, any more than stocks or gold anyway. As risk assets they are all correlated, particularly on higher time frames.

[Kopetunto]

How we can determine BTC is digital gold?BTC Thats can be determined by their attribute. Gold is valuable because it's rare and has a limited supply. This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society. Gold and BTC both can be stored though they have different methods to do that. But if you compare these criteria then we can say Bitcoin is digital gold.

Bitcoin is indeed compared to gold, some even say that Bitcoin is Gold 2.0,
yes I myself think that Bitcoin will indeed be gold, but gold in terms of technology,
we know there are 2 worlds, the internet world and the real world,
Gold is valuable in the real world, and Bitcoin is valuable on the internet, that's what I believe.

[Ucy]

Or we could just call it Bitcoin, and maybe call virtual/digital Gold (virtual version/representation of physical Gold) Digital Gold? I think digital/virtual gold would have to have its physical gold version or representation in physical world... so that if you have virtual ownership of the virtual gold you automatically have ownership to its physical equivalent.
The "digital gold" without physical representation could have names distinct from "Gold", probably with the name gold attached to the distinct names.
I wonder how it will sound to others if someone create a "fake" 1 Bitcoin with metal and call it 1BTC/1Bitcoin/PhysicalBitcoin and sell it for 19000. I guess they do this already. The confusions could decieve people.

[Leviathan.007]

The person who said something should correct his word because bitcoin is not like gold at all. Depending on yourself and the risk you can take you should choose gold or bitcoin. gold is always a safe haven and nothing can't change it there is always a huge demand for it and gold got value by itself. there are many stable coins for it. But, in the other hand, bitcoin got better situation this year and rising faster in price however surly it will fall faster as well. To be short, bitcoin and gold got two different ways.

[laredo7mm]

it has been raised and adopted by human as one of the most valuable asset on the world

Same thing is happening to bitcoin. We use digital gold to name bitcoin which makes it becomes even more valuable.

Gold is not valuable only because humans think it's valuable. Gold is rare than other substances like Iron and steel. It's hard to find than other metals and it's shiny and easy to use. Similar things can be applied to Bitcoin as well. It's not very easy to get BTC If you do not have a lot of money and BTC is very easy to use.

 

This term is true for Bitcoin as well. Both can be exchangeable with essential goods and they are acceptable in our society.

Do you know a lot of stores that sell eggs or flour for gold or Bitcoin?

Maybe it's not possible right now but our financial sector and e-commerce are heading towards that way and we can buy and sell other products like watches, cars, phones, etc which is also necessary for human life.