Why do many people call Bitcoin "digital gold"?

[BlackHatCoiner]

So when you say digital gold, it would make zero sense to most people because you can't physically see nor touch bitcoin.

It is then judged by yourself if that's true. It's up to you to define what's Bitcoin. In my opinion, it may not be touched, but it can be seen. In this cryptographic world we've dive, proof speaks for itself. A signature of a message may be considered intangible, but not invisible. I confirm that the signature is authentic by observing it.

To me, Bitcoin is a visible currency where each coin can be represented with a valid signature.

[randegibran]

for virtual maybe bitcoin almost has similarities with digital gold, especially in the price factor that changes and never stays on its stability, and the price changes in a fairly short time and without our knowledge before we see it, maybe this is one of the the reason why bitcoin is called virtual gold, and for the level of security it is very tight and not easy to break into by people who have no good intentions

[AicecreaME]

My last post described that Bitcoin was given the attribute of matter when it was created by Satoshi Nakamoto. Bitcoin is as unique and non-replicable as matter. For this reason, Bitcoin is often compared with gold. Why is Bitcoin called "digital gold"? I want to discuss it with everyone.

Satoshi Nakamoto's original intention to create Bitcoin was to establish an A Peer-to-Peer Electronic Cash System. This kind of electronic cash can be used for daily payment and circulation, and can also serve as a "world currency" function. The role of "world currency" was once played by gold, so some people compare Bitcoin to digital gold.

To a certain extent, Bitcoin is replacing gold as a "world currency" and a "store of value" function. This is also the basic consensus that supports the price of Bitcoin. I summarized the following points:

1)Bitcoin, like gold, has a limited total amount and is scarce, and neither can be supplied infinitely. At the same time, it is very difficult to obtain, and it requires cost.
2)Bitcoin and gold have similar physical properties, and both have the uniqueness of matter. Can not be tampered with, can not be copied, can be physically divided.
3)Both Bitcoin and gold have similar monetary properties and can be used for daily payments or as a store of value.
4)Bitcoin can also perform the function of "world currency" and anchor global assets.

Compared with gold, Bitcoin also has the following advantages:

1)Continuous deflation in quantity:
The total amount of Bitcoin is 21 million, and the total amount is constant, and it is constantly being mined in the form of "mining". But at the same time, more and more Bitcoin owners may lose their private keys for various reasons, causing Bitcoins to no longer be found and circulated. This phenomenon occurs every day, so the total amount of bitcoins that can be circulated will only become less and less in the future.
2)Easier to divide:
Compared to gold, Bitcoin is easier to divide. The smallest unit of bitcoin is 1 satoshi, and a bitcoin can be divided into 100 million satoshis. At the same time, the Bitcoin split has almost no cost, while the golden section has a huge cost.
3)Easier to carry and trade:
Benefiting from the fast-growing cryptocurrency exchange business, Bitcoin can be traded uninterruptedly within a 24-hour time frame around the world. At this point, Bitcoin's global circulation is better than gold.
4)Can not forge:
All Bitcoin data is controlled by the Bitcoin network and cannot be forged or tampered with. On this basis, Bitcoin successfully established code trust. To a certain extent, gold can be faked. We often see various news or fraud cases about gold fraud. At this point, Bitcoin is also a winner.
5)More transparent:
Compared to gold, Bitcoin has the advantage of being more transparent. Gold trading is not public, and many traders use "paper gold." But every transaction of Bitcoin is open and transparent, and its transaction records can be found on the chain. This is the cornerstone of Bitcoin's value.
6)More decentralized:
Gold is a product controlled by a centralized organization, that is, the government. On the one hand, the central banks of various countries monopolize the vast majority of gold reserves. On the other hand, the government can introduce policies to restrict ordinary people from holding gold. This has resulted in the vast majority of people being only able to invest in gold derivatives such as "paper gold".

But for Bitcoin, anyone can buy and sell Bitcoin without restriction at any time. At the same time, individuals have absolute ownership of Bitcoin's private keys instead of relying on some centralized institutions. Bitcoin puts assets under the control of their owners.

We found that Bitcoin has many advantages that gold does not have on the basis of the characteristics of gold. If Bitcoin replaces gold as a value anchor, the market value of Bitcoin will definitely exceed gold. This is the basic logic that supports the price of Bitcoin.

According to statistics, the total market value of global gold currently exceeds 8 trillion U.S. dollars. If the market value of Bitcoin exceeds 8 trillion U.S. dollars, the value of a single Bitcoin will exceed 400,000 U.S. dollars. This is just a judgment on Bitcoin's value as a "digital gold".

Why do many people call Bitcoin "digital gold"?

This is such a detailed explanation of why people are calling bitcoin 'digital gold' and why is it often associated with gold in the first place. Bitcoin is indeed a valuable asset that a person can possess. Its value goes up and up after a long period of time. Although volatility is also its nature, we still can't deny the fact that bitcoin has exceeded and overcame the test of time it has undergone. That is why a lot of investors are continually eyeing it for the long-term because it can generate more profit after several years. Some people are even going all-in on bitcoin because they trust its potential so much. Hodling every single amount of bitcoin they have is what they conditioned their minds to do. Delayed gratification is the goal of almost everyone holding btc.

[marine4u]

Along with scarcity, the value of bitcoin has exploded for modern demand. It has transformed from a pure, freely used investment to an existing, store of "value" asset similar to gold. It is founded on the greatness of digital -  blockchain. Therefore, Bitcoin is likened to "digital gold".


Believe that, in the coming years, bitcoin will be used more than gold!

[adzino]

But should really stop calling bitcoin as a digital gold. I guess people call it digital gold because it has store of value just like gold. Both are "mined", but the only difference is that gold can be physically felt, but bitcoin exists only digitally. Both of them exhibits some similar properties. Back then coins were made with a mixture of silver and gold. People use those coins to buy goods. People can also use bitcoin as a currency to purchase goods. And like you said both of them are somewhat "scarce", hence people compares bitcoin with gold.

[conected]

It makes it easier for them to understand what bitcoin is. It is unlikely that they know about stablecoins backed by gold.

right, the mention of Bitcoin is a digital gold to make it easier to explain Bitcoin to ordinary people. many people do not understand what Bitcoin is and is Bitcoin safe then it makes the parable of Bitcoin is digital gold will definitely make it easier for them to understand a little bit about Bitcoin.

- I just feel this is only meant to make people more curious when the image of gold is linked to investment and wealth, building such images with bitcoin will be a strategy to score points in front of many people, especially in the beginning, the explanation of bitcoin is a very difficult thing, just create such a link, many people do not need to understand and just join, save a lot of time and increase more capital. Now, with the wide spread and success, the name seems to be associated with bitcoin

[Gcrypto786]

Believe that, in the coming years, bitcoin will be used more than gold!

At some point you are right but there is a huge difference between Bitcoin and Gold as Bitcoin is not stable and any time the BTC can be down to earth and on the other hand, there is some price fluctuation in Gold but not like BTC.

[mrongoz_imut]

why do many people call bitcoin as gold in digital,,?? because bitcoin has a fantastic price, while gold has a stable price, the risks experienced by bitcoin and gold are very different, because we can see gold does not have any risk because the price is stable, but if bitcoin has a big risk, but the profit we get can be said to be very large..

[mk4]

It is then judged by yourself if that's true. It's up to you to define what's Bitcoin. In my opinion, it may not be touched, but it can be seen. In this cryptographic world we've dive, proof speaks for itself. A signature of a message may be considered intangible, but not invisible. I confirm that the signature is authentic by observing it.

To me, Bitcoin is a visible currency where each coin can be represented with a valid signature.

Precisely. If you really want to make a great explanation, the way you're going to define Bitcoin will completely depend on who you're talking to. Using the "digital gold" narrative might kinda work on a younger dude who are used to trading game currencies and items whereas probably a "uncorrelated asset" narrative would work better for an older finance dude, etc.

[bitzizzix]

In my opinion, what is meant by digital gold because bitcoin has characteristics like gold does not mean that bitcoin is pure like gold that has a shape or form, and many industry players and analysts refer to Bitcoin as "digital gold", because gold and Bitcoin have a limited supply, so potentially maintain value in the market.
and gold is limited by physical supply and difficulty Bitcoin extraction and mining is limited to 21 million coins based on its source code, which are both valuable and rare, and bitcoin is dubbed the new gold and which is much more portable, transporting and owning Bitcoin is much easier than having gold bullion in your pocket.

[taufik123]

Bitcoin thrives during “risk-on” conditions, while gold prefers “risk-off”

Does it mean Gold has no risk?
I don't think so. Gold value can decrease, too.
But if you look at the price history, the change is not very significant as Bitcoin value.

Investing in gold also has risks, but the risks involved are not as extreme as Bitcoin. The value of gold can indeed go down, but fluctuations in gold prices are very slow and will not be detected in the next 1 year, it will take years. Gold is used for long term investment. Another risk of investing in gold is the high risk of loss, because gold is a precious stone that has value.

All types of investment certainly have risks but with different levels.

[BOAEDAN]

maybe in terms of prices that almost have a lot of similarities contained in it, especially regarding prices that are constantly changing for the future, with many almost all similarities that are not much different in it for something that causes almost the same with pure gold at this time

[BlackHatCoiner]

Bitcoin extraction and mining is limited to 21 million coins based on its source code

Actually, the coins will be 21M, because the people say so. That's more powerful than a bunch of C++ lines. The people are the ones who will install the software and be in favour of keeping it that way. The people are the ones who have no incentive on increasing the circulating supply. The people can double those 21M coins very easily, but they don't because they don't find a reason to. Because, the remaining people won't agree upon their change.

Bitcoin is a decision made by people for the people.

[Issa56]

Seriously bitcoin is obviously the digital gold because is the number one digital currency and the demand for bitcoin is really high. Currently bitcoin is getting scared and the price is getting high which makes it digital gold whenever you talk about digital currency the first coin you will talk about is bitcoin so bitcoin is definitely digital gold.

[batako]

why do many people call bitcoin as gold in digital,,?? because bitcoin has a fantastic price, while gold has a stable price, the risks experienced by bitcoin and gold are very different, because we can see gold does not have any risk because the price is stable, but if bitcoin has a big risk, but the profit we get can be said to be very large..

People call it digital gold because of the similarity of properties with gold in the real world where we can get big profits when we keep it for a long time. What makes a little difference is, if gold in the real world tends to be stable and safe to use as an investment, while in bitcoin the risk will be higher which of course has the opportunity to get a much bigger profit as well.

[Shawn20]

Reason can be many but i think, It is the main Hero of the crypto world and people believe that it can give them more profit than physical gold. As it is the digital money and can give more profit than gold.often called as digital gold. Though there may be some risk but most of the people who believed in Bitcoin previously,  were winner

[SaShiRaJaVu]

~
I disagree slightly. I don't think most people even know the monetary uses of gold, other than it's shiny and it looks good for bracelets, rings, and necklaces. So when you say digital gold, it would make zero sense to most people because you can't physically see nor touch bitcoin.

This is just a marketing pitch that Bitcoin is the digital gold by many and for a normal individual it does not make any sense and all they see is people spending money for bits and bytes and you cannot complain them either and anyone who is involved in the stock market will not understand it either as all they look for is underlying valuation of a business and how they are progressing.

The best part is to not compare these investment markets and then it would be easier for anyone new to understand.

[kawetsriyanto]

Investing in gold also has risks, but the risks involved are not as extreme as Bitcoin.

Yep. That's exactly what I mean above. Investing in Gold has a risk, too. But the risk should be much smaller because the price change of Gold isn't as significant as Bitcoin. Also, Gold investment is always popular every time, it is already proven for many many years. And it is also supported by all parties in the world, including the government. This makes Gold is safer for a long-term asset than Bitcoin, now. However, Bitcoin may be like Bitcoin too in the future. 

All types of investment certainly have risks but with different levels.

Indeed. No investment has no risk.
Sometimes the risks reflect the profits potential. For example, Bitcoin offers potential big profit but it has a big risk as well. While for Gold, the potential profit probably isn't as big as Bitcoin, but the risk is relatively smaller.

[verita1]

I agree as some of the members think. In the answer that is because investors see bitcoin as a store of value.
Just as we believe in bitcoin, we are supporting the fact that blockchain is disrupting finance and technology.
We have displaced the PC Internet for the mobile Internet because we spend most of the time using it.
Digital gold reminds us of physical gold that is money and has value that is why people call it that.
Peer to Peer or P2P is the main characteristic of bitcoin in its beginnings as we know but it is more common to associate it with the "store of value", digital gold, active digital.

[maxreish]

Since many were comparing it with gold because of it's special value and many were considering bitcoin as an asset value like gold, they came up with "digital gold" as bitcoin only existed and transacted online. The newest era already been improved as cashless society begun to use by many of us, thus digital transactions are already been widely operated.
 
 As those people already proved that the value of bitcoin can help us to financially grow, like gold who increases its value and considered good investment. Digital asset like bitcoin can also proved that it can keep up with gold in terms of being a good investment.