Increasing dominance of gold

[Mame89]

If we look at the future, gold reserves will likely continue to play an important role in the global economy. It's natural to depend on gold, as it's been around for much longer than any current fiat currency. Not to mention that Trump Administration's activities do not exactly invoke a sense of reliability and trust.

Bitcoin is more profitable, but also way more volatile. The USD is fiat, so it loses value on a yearly basis, and people can be legitimately concerned that it will lose much more value than usual.

Gold reserves have been carried out by several countries for a long time, and indeed gold is always in demand because the price of gold tends to be stable, even in recent times the price has always increased. Long before bitcoin existed, gold already existed first. Not everyone understands bitcoin but with gold almost everyone in the world knows that gold is a good asset to invest in.

I once read an article that there are many countries that use gold as a reserve even though the country does not have a gold mine but they have very large gold reserves. Like France, France has gold reserves in banks of up to thousands of tons, even though it does not have a single gold mine. This proves that gold reserves in every country are needed because fiat will decrease due to inflation. And there are also countries that do not have gold reserves in their banks but have almost a thousand gold mines and produce tens of tons per year, namely Mali. Here we can also conclude that every developed country always makes gold a reserve of state assets.

So gold is increasing every year, this is very natural, because gold has been very valuable since ancient times, so we must be able to set aside some of our income for gold or bitcoin for the future. Having both would be much better.

[Jawhead999]

Gold's market capitalization has surpassed $20 trillion and is more than 10 times the market capitalization of bitcoin, so expecting the price of gold to double from now on is delusional. But the scenario of gold losing 50% of its value in a few months is also an illusion. That is impossible and has never happened in the past. This could happen with bitcoin but not with gold because gold is a safe haven, not a speculative asset like bitcoin.


https://x.com/Investywise/status/1908047109967822943

Agree, 2013-2015 are the bad years for gold, but the price didn't lose more than 50% in a year. Gold has lower volatility because it has been exist since a long time ago, hence it's hard to pump the price and hard to dump the price too.

Look how crazy Bitcoin return, it rise and down more than 50% in every year. But, as time goes, I believe the volatility of Bitcoin would be less, just like gold.


https://www.statmuse.com/money/ask/bitcoin-yearly-returns-last-10-years

[fuguebtc]

But the question is when will gold become history, when will that happen, 10 years or 100 years from now? I have been hearing bitcoin investors talk about bitcoin replacing gold for years. But what is happening is that gold continues to dominate, and is the top choice of governments and major investors regardless of the global economic situation.
Although bitcoin has also grown significantly over the past year, it is showing signs of weakness and dumping due to the uncertain economic situation. How can an asset being dumped due to inflation, tariffs...economic instability become a store of value and replace gold?
I am also a bitcoin investor, to be honest, I doubt that bitcoin can replace gold in the next few decades.

It is very difficult to predict this because the ups and downs of the economy that are happening now are difficult to predict, whether gold can replace bitcoin in the future, of course that is a difficult question to answer but looking at the current value of bitcoin does not rule out the possibility that in the future it can replace gold because its value is high even though there is a decline but very little is considered not worrying.

To be fair, no one has a crystal ball to predict the future and I don't deny the scenario that bitcoin could overtake gold in the future. But based on what has been happening: bitcoin is being dumped and gold continue to rise thanks to increased global demand. Not only are central banks scrambling to buy but ordinary people also have a demand for gold, while bitcoin prices can only rise when there is positive news and many people are selling because of fear of recession. Looking at that I can say that bitcoin is unlikely to surpass gold in the near future or in the next few decades as I said.

Many people expect the United States to usher in a digital golden age, they expect the US government to sell gold to buy bitcoin. But in fact the opposite is happening, the US is increasing its gold imports in January to a record level.


https://x.com/KobeissiLetter/status/1905631085205020941

[Stalker22]

~But in fact the opposite is happening, the US is increasing its gold imports in January to a record level.

Probably a front-loading effect due to expected upcoming tariffs.  A gold rush driven by fear. And honestly, who can blame them?

[|MINER|]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

This is not just a current story, since ancient times, the power and economic status of various states or kings or countries depended on their gold reserves.
And this is still going on today. If we see that currently the most powerful country is the United States of America and they also have the largest gold reserves in the world. That means there is a connection between power and gold reserves.
So why wouldn't other countries want to increase their gold reserves? USD is the national currency of the USA, so if they keep it in reserve, they can be controlled by the USA, for example, if the USA wants, it can create inflation in the market by printing money at will.
On the other hand, gold is relatively limited, so most countries in the region are interested in adopting it as a central reserve. And I think that will increase the price of gold even more.

[shinratensei_]

Agree, 2013-2015 are the bad years for gold, but the price didn't lose more than 50% in a year. Gold has lower volatility because it has been exist since a long time ago, hence it's hard to pump the price and hard to dump the price too.

That was arguably years of stability.
At least more stable than current economic condition, therefore gold isn't interesting asset to invest.

As from my understanding gold always have rally when there's something big coming up like crisis, war, and so on.
I can see the correlation from the historical price chart and finding out what events happened at that time. hopefully it isn't a bad omen, but I'm ready to anticipate whatever gonna play out in the future.

[DanWalker]

But, as time goes, I believe the volatility of Bitcoin would be less, just like gold.

Yes, it will happen but not now or in the near future, I guess it will take a long time for bitcoin to become as stable as gold. But the price we pay is that if bitcoin becomes more stable and less volatile, it means the returns it generates will also be lower.

as from my understanding gold always have rally when there's something big coming up like crisis, war, and so on.
can see the correlation from the historical price chart and finding out what events happened at that time. hopefully it isn't a bad omen, but I'm ready to anticipate whatever gonna play out in the future.

As from my understanding, the sudden and sharp increase in gold prices is never a good sign for the economy, it signals an unstable economy and could lead to recession. I hope Trump changes his mind in the near future and things turn around but I also don't rule out the possibility that we will enter a bear market season. Because bitcoin is not gold and it is not like gold.

[Abiky]

But the question is when will gold become history, when will that happen, 10 years or 100 years from now? I have been hearing bitcoin investors talk about bitcoin replacing gold for years. But what is happening is that gold continues to dominate, and is the top choice of governments and major investors regardless of the global economic situation.
Although bitcoin has also grown significantly over the past year, it is showing signs of weakness and dumping due to the uncertain economic situation. How can an asset being dumped due to inflation, tariffs...economic instability become a store of value and replace gold?
I am also a bitcoin investor, to be honest, I doubt that bitcoin can replace gold in the next few decades.

I don't think 10 years will be enough for Gold to become history. Bitcoin is just getting started. It might as well take 100 years (another century) before that happens. The market is too volatile, anyways. There's a long road ahead before it reaches stability.

My guess is that Bitcoin will be "solid enough" to become Gold's successor once the very last coin is mined (which will happen around 2140). Neither you or I will be alive by the time that happens. Either way, Satoshi intended Bitcoin to be used as "digital cash". Not "digital Gold" or a "store of value". But the limited supply and unmatched security/reliability, makes people think otherwise. We can never tell what the future holds for both BTC and Gold. So I'd diversify my investment just to be safe.

[Akbarkoe]

But the question is when will gold become history, when will that happen, 10 years or 100 years from now? I have been hearing bitcoin investors talk about bitcoin replacing gold for years. But what is happening is that gold continues to dominate, and is the top choice of governments and major investors regardless of the global economic situation.
Although bitcoin has also grown significantly over the past year, it is showing signs of weakness and dumping due to the uncertain economic situation. How can an asset being dumped due to inflation, tariffs...economic instability become a store of value and replace gold?
I am also a bitcoin investor, to be honest, I doubt that bitcoin can replace gold in the next few decades.

I don't think 10 years will be enough for Gold to become history. Bitcoin is just getting started. It might as well take 100 years (another century) before that happens. The market is too volatile, anyways. There's a long road ahead before it reaches stability.

My guess is that Bitcoin will be "solid enough" to become Gold's successor once the very last coin is mined (which will happen around 2140). Neither you or I will be alive by the time that happens. Either way, Satoshi intended Bitcoin to be used as "digital cash". Not "digital Gold" or a "store of value". But the limited supply and unmatched security/reliability, makes people think otherwise. We can never tell what the future holds for both BTC and Gold. So I'd diversify my investment just to be safe.

Gold will be an option in maintaining value that does not have high fluctuations, bitcoin still has high fluctuations so that most governments and institutions make more purchases of gold than bitcoin even though today we see some countries making purchases of bitcoin but little of the portfolio they share to buy bitcoin.

Talking about bitcoin as a substitute for gold I think it will not happen it will only be an alternative even though many claim that bitcoin is digital gold, it is just a framing taken from some of the same properties of both in different places, diversifying both is one of the safest forms of investment we can take now.

[STT]

Dollar used to be gold, exchangable on demand was the norm and we have spent decades away from that rule but still it is seconds in the brief history of time we merely blinked for a moment to mess with paper and it would be quite normal to just respect gold again not new or near to whats its been previously.

gold become history, when will that happen

That would be like supposing when is oxygen redundant, as an element its never going away and will always be useful.   Alternatives can arrive and be even more popular but the original origins of money or many processes we suppose we have updated and replaced with our modern amazingness I dont think so.

so expecting the price of gold to double from now on is delusional

Great mark me down then, Gold can triple from here and it wont be over hyped still it will be a fair rebalance.   Thats how skewed we are in markets, distorted by years of nonsense.   If you cant believe this just know China has been buying gold for twenty years, they used to be the main holder of dollar debt but they do prefer the gold.   I dont know China especially but money talks not our opinions so much.

[OgNasty]

It used to be science fiction to think one day man would land on a meteor and mine tons of gold. It isn’t so much anymore. With SpaceX and their mission to explore the stars becoming more and more real, we might in our lifetime see a major disruption to gold as it is realized there is an endless supply of it.

[BenCodie]

Many people expect the United States to usher in a digital golden age, they expect the US government to sell gold to buy bitcoin. But in fact the opposite is happening, the US is increasing its gold imports in January to a record level.


https://x.com/KobeissiLetter/status/1905631085205020941

Time is an important factor. You will find that the media and public figures will say things that cause instant hysteria or hype, but the happening of what they say could still be months or years away. It makes perfect sense for gold imports to increase, as if they truly want to make Bitcoin the replacement for gold, they need to first take as much gold as they can out of supply. That would start with buying as much of it as possible. If they sold all of their gold on hand for Bitcoin whilst too much of it was circulating elsewhere, the desired effect for the world to follow to Bitcoin would be much less likely. At least, that's what I speculate.

[Smack That Ace]

It used to be science fiction to think one day man would land on a meteor and mine tons of gold. It isn’t so much anymore. With SpaceX and their mission to explore the stars becoming more and more real, we might in our lifetime see a major disruption to gold as it is realized there is an endless supply of it.

Mining gold on earth is getting harder and more expensive, and this is one of the reasons why the price of gold does not decrease despite the supply increasing every year. So don't rush into thinking about mining gold on other planets any time soon and it's easy as you think. Even the idea of ​​mining gold off Earth would make gold more valuable as people realize that there is not enough gold on Earth to use and we have to venture out into space to find and mine gold.

In the evolution of the world, humans have invented many great works, they can fake diamonds, invent bitcoin...but for thousands of years they still cannot fake gold or find any other material that can replace it. The role and importance of gold will not disappear in the future even though we are living in a digital world. It is the truth and we need to accept the reality.

[Renampun]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

of course when more and more countries buy gold then the price will increase and the behavior of people who like gold will also be affected, for example if a housewife who already has gold hears that the price of gold has increased then she will automatically sell it for living expenses maybe and for people who want to maintain the value of the money they have then they will definitely choose gold as savings instead of fiat money or stocks because gold is an asset that is immune to inflation and any pressure (just like bitcoin)

Remember, as long as war continues to arise, gold will continue to be bought by countries that want to protect their assets.

[fuguebtc]

Gold will be an option in maintaining value that does not have high fluctuations, bitcoin still has high fluctuations so that most governments and institutions make more purchases of gold than bitcoin even though today we see some countries making purchases of bitcoin but little of the portfolio they share to buy bitcoin.

As far as I know, except for El Salvador, no government has bought bitcoin and it's all just rumors. And given the current situation, they will say “No” even more to bitcoin, an extremely volatile asset that is likely to be dumped even further if the economy takes a turn for the worse.

Talking about bitcoin as a substitute for gold I think it will not happen it will only be an alternative even though many claim that bitcoin is digital gold, it is just a framing taken from some of the same properties of both in different places, diversifying both is one of the safest forms of investment we can take now.

I know that many bitcoin investors will not like to hear this because they always want bitcoin to be number 1, the main character and not just an alternative. But the truth is sometimes quite cruel and I agree that bitcoin is unlikely to replace the role and status of gold. Gold is completely different and that is why governments have trusted it for hundreds of years.

[ITExpert]

Holding gold as a reserve is not a new thing; it's something that has always been happening over the years, especially now that many are looking for ways to limit their dependence on the United States dollar, a fiat currency which is being devalued every time it is not supposed to be held as a reserve. Its purchase value is dying off over time. Gold has been used as a reserve for decades now; even the US government are among the top holders.

I think There are different ways near wealthier individuals or countries to reserve their wealth and other resoruces. Either they invest their wealth or buy cryptocoins so that whenever they needed it, they can use these sources. The advanced countries like USA are still reserving in the form of Gold because it retains its value even during inflation, economic instability or currency devaluation. This make it a reliable source to reserve wealth when paper currencies are loosing their purchasing power during financial crises. In addition, reserving gold allows countries to be independent from other currencies like U.S Dollar or euro. U.S and other major powers are holding gold reserves to enhance their strength and credibility to international markets. Gold is a sign of financial stability and it is independent of the central banks policies. That's why Gold is preferred as the protected and stable asset.

[Dunamisx]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

We don't have to wait for the future before we can start to see the manifest of its consequences, because its already happening right now as we speak, just as many already know, that gold is performing well and even at it all time high, those that have invested long time ago would have been profitable in it, but still yet, people now prefer the use of a digital asset than the physical or centralized type, which makes bitcoin in cryptocurrency the edge over every other investment assets in consideration.

[Hazink]

We don't have to wait for the future before we can start to see the manifest of its consequences, because its already happening right now as we speak, just as many already know, that gold is performing well and even at it all time high, those that have invested long time ago would have been profitable in it, but still yet, people now prefer the use of a digital asset than the physical or centralized type, which makes bitcoin in cryptocurrency the edge over every other investment assets in consideration.

People prefer to use digital currency because most of them are looking for where to tap profit from, which gold is not given them that, only a few who are involved in bitcoin go into it because they need privacy and total control, as some of them don't even care about it but only chose it because it's the oldest with the highest market capitalization, which shows some level of trust and nothing more.

[Stella Mese]

People prefer to use digital currency because most of them are looking for where to tap profit from, which gold is not given them that, only a few who are involved in bitcoin go into it because they need privacy and total control, as some of them don't even care about it but only chose it because it's the oldest with the highest market capitalization, which shows some level of trust and nothing more.

Yes, indeed people prefer level of trust is different now than before, maybe they see the current progress which is more towards digital money and making it a trend for now, and that is something common because they think that gold does not provide many benefits, among them many choose bitcoin which they apply of course reaping profits is the main reason,
because they think more advanced for the present.

[Crackboy68]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

If you have been paying attention, you will see that people are now interested in storing gold instead of buying dollars. They may have seen that gold is moving much further than before. However, this progress started long ago in the United States. So people are now interested in buying Bitcoin instead of buying dollars.