Gold, Cash, and Bitcoin: Who Truly Secures Your Wealth?

[fuguebtc]

IMO, both Gold and Bitcoin secure the future.

If you invest in Gold and Bitcoin now, in the long term, there will be huge profits for you because they both increase exponentially. Cash, on the other hand, does not defend anything, neither the present, the past, nor the future. Cash is meant to be for purchasing power; once left stagnant, it will lose value with time.

Fiat money depreciates over time but is not volatile in the short term, not dumped and reduced by 30 or 50% in the short to medium term like bitcoin and gold. So it's not completely useless as you say, it can still protect us somewhat now and in the near future (in case of emergency).

Also, bitcoin and gold can protect us in the future but don't expect that they can bring us huge profits. Both cannot grow exponentially as you say. Especially bitcoin, the days of exponential growth and get rich quick with it are over.

[Olatundespo]

I would say include all three that mitigate the single point of failure. Gold has a long history and people's trust, Silver is showing very good growth in the last few years while bitcoin is being bitcoin and has given a huge amount of returns for the long-term holders. WHile the future may holds anything and one can fail even though we thought it is impossible to happen that is why I suggested the diversification which is good when it comes to secure the wealth.

You have suggested asset diversification. I agree with this. If there is a balanced distribution in each asset then as an investor there will be no regrets in any situation. One of your recommendations is about buying gold. Suppose you can buy this traditional asset but you have to spend a part of the income on maintaining it or you have to create a separate security system for the safety of this asset. In that case I would suggest investing in Bitcoin. Due to the effect of inflation, the value of fiat will decrease in the future, so accumulation it is also risky. As a potential asset, I would recommend keeping a large amount of Bitcoin. And keep Bitcoin accumulation going through discretionary income.

[Dogedegen]

I understand what you are saying, but I believe your conclusion is a bit off. The reasons you provided, your theory only works if we assume that Bitcoin security only ever relies on block rewards. However, that is not how security is designed to work.

It is flawed in many other ways too, those ideas come from the scammers in the altcoin world. They don't even propose anything better, they just have worse solutions to a fake problem that they discuss in Bitcoin. They print more money for themselves and their staking provider partners. That is their solution, they recreated the FED in digital space. 

The block reward was created to decline steadily so that transaction fees could steadily take over its role. That isn’t to say that Bitcoin is "doomed" to 2052 or that the price of Bitcoin has to 50x each cycle. Miners adjusts and security of the network are meant to adapt. It also means that less block space is available which means the network will adopt price driven security and adapt over time to an economy that is fee driven.

The security budget does not need to increase or stay the same, it can undergo times of reduction. People often talk about deflation in Bitcoin but they don't understand that the mining part of the equation is deflationary too. They don't understand how a deflationary market is supposed to work when they have been living in an inflation nightmare. Most efficient miners will survive and thrive, the ones that can't compete will be shut down. That is natural and healthy.

Trust that was built over 15 years relies on the network and how it works not changing. Suggesting Bitcoin should change block times or the halving schedule is to not understand Bitcoin and how it works. It is the very definition of Bitcoin. I don't think 2052 is going to be doomsday. The ecosystem is going to change way before that.  This is why a lot of people see bitcoin as the strongest store of value in the long run.  It is not because the halving numbers line up perfectly.   It is because the system keeps going as the rewards keep decreasing.

Changing anything is a mistake, but if we were to change something it would be a reduction of block time not an increase. The supply issuance can be adjusted so that it follows the same trajectory as before. But I doubt that we are going to do this so it is not worth putting too much time discussing it.

[FiliOrangGila]

If it's just to preserve wealth from being eroded by inflation, the best option is gold. Money is clearly bad because year after year its purchasing power continues to be eroded due to inflation. So if wealth assets are only stored in the form of fiat money, it will certainly be a big loss because instead of increasing, its value will make us poorer as its purchasing power keeps declining. Therefore, money is better used for investment, to work, earn more money, and find its companion. But if you understand and analyze crypto well, the best is to keep it in the crypto world because its value will continue to rise, and the asset value will increase, meaning you become richer.

[Smack That Ace]

If it's just to preserve wealth from being eroded by inflation, the best option is gold. Money is clearly bad because year after year its purchasing power continues to be eroded due to inflation. So if wealth assets are only stored in the form of fiat money, it will certainly be a big loss because instead of increasing, its value will make us poorer as its purchasing power keeps declining. Therefore, money is better used for investment, to work, earn more money, and find its companion. But if you understand and analyze crypto well, the best is to keep it in the crypto world because its value will continue to rise, and the asset value will increase, meaning you become richer.

Even if you have good knowledge and analytical skills, it doesn't mean you will be safe because the crypto market is full of scams, manipulations and anything can happen. In other words, everything has its price, the higher the return, the greater the risk.

So keeping all your money in the crypto world is not a wise idea even if it is the safest asset like bitcoin. Not to mention, its volatility will also cause problems for your life if all the money is bitcoin. Therefore, I think diversification would be best. Gold for risk mitigation, bitcoin investment for bigger goals, and fiat for current use.

[DrBeer]

....
I will talk about jewelry as someone who has experience working in a company where one of the businesses was pawnshops.
On the one hand, we have jewelry made of high-quality metal. On the other hand, we have a finished product with high added value due to the work of master jewelers and its aesthetic beauty. However, on the market, such items will be accepted at the price of scrap metal! In other words, all the added value that you paid for when purchasing the jewelry will be lost, and you will only receive the price of the metal and nothing more.
Conclusion: gold jewelry remains a highly liquid asset, but if you need to sell it, you will lose a significant portion of the original purchase price.

To be clear, gold used to make jewelry is mainly 999, 995 or 22k and 18k gold. All are gold but the gold content varies, and the value of gold jewelry includes the type of gold, workmanship, brand or design. If we buy gold jewelry and when we sell it, what we get is only the value of the raw gold, other costs like labor will be deducted and this is our loss when we buy gold jewelry.

However, if we buy 24k gold (9999) it is equivalent to gold stored by banks and is often used for investment. We will not incur any costs like gold jewelry. Therefore, if someone wants to invest in physical gold, buy 24k gold.

I'll be brief, but there are some nuances
The most common fineness for jewelry is considered to be 585 (14 karat gold). The reason is simple: it is more affordable and has better physical characteristics. There are even statistics on the popularity of gold fineness around the world:
- Europe — 585;
- Italy, UAE — 750;
- Asia — mostly 916 (22K) and even 999;
- USA — 585 and 417 (10K).
Therefore, only a small portion of jewelry is equivalent to bank gold. At the same time, jewelry is always purchased at a discount. So, jewelry is certainly valuable, but it loses out in terms of “value” to bank gold bars.

[Mihaylovic]

In your opinion,  do you still think gold and cash can really keep up in the next 10-20 years?  Or do you think Bitcoin is gradually taking the crown for the value of cash?

Mostly agree. Gold preserves the past and is the most traditional way to store value. It’s a friend in hard times. Bitcoin is the future.
If you have gold, your mind is at ease and your stress is low.
If you have Bitcoin, your hopes and expectations for the future are higher.
In a way, both are safe havens of different eras... one is the solidity of the past, the other is the potential of the future.

[batang_bitcoin]

But what do you all think? I’m curious.

In your opinion,  do you still think gold and cash can really keep up in the next 10-20 years?  Or do you think Bitcoin is gradually taking the crown for the value of cash?

Even if we say that bitcoin is about to take the thoughts of most people who understood how fiat works and while many countries keep on printing. We're living in a world where it's being controlled by the government. So cash will still keep up and as long as we're in a centralized government, they'll push for that. While bitcoin is really the future, others say for finance, others say for the store of value and the race that it has made the countries for accumulating it as a reserve in line with gold, all of them will coexist.

[Joy_learns_crypto]

For me neither Gold, cash and bitcoin secure my wealth because they are all physical and digital assets. I am the one that truly secures my wealth.
You can ruin you wealth/wealth chances and you can build your wealth and secure it.
You can have bitcoin, Gold and cash or you can pick from them which you want to secure your wealth in but you are in control. How secure are you with your bitcoin if you have you wealth in it or how secure are you with gold and cash if you wealth is put in them.
The holder of the wealth is who truly secures their wealth.

[|MINER|]

In your opinion,  do you still think gold and cash can really keep up in the next 10-20 years?  Or do you think Bitcoin is gradually taking the crown for the value of cash?

I see potential here between gold and Bitcoin, but fiat currency will inflate more and more as the days go by, meaning that if I hold $100k today, the value of this asset will gradually decrease in the future due to inflation.
However, I see gold and bitcoin as my future opportunities. As a whole, gold will increase the value of our backup and asset together, and in the case of bitcoin, long-term holding means taking the crown for the value of cash.

[Coyster]

Gold is a safe haven asset, meaning it retains its value in uncertain times and also in crisis and similar situations. This is why gold has risen to new highs in the last couple of months, as investors and governments continue to stockpile gold amidst geopolitical tension.

That said, if you are looking for a safe haven asset as a hedge to inflation, then gold is your best bet. Bitcoin is much more volatile than gold, but it is a hedge against inflation, particularly in the long run, so if you are a long term investor who does not mind volatility, bitcoin is a perfect option. I only keep a limited amount of fiat in my bank account, which is for spending and emergencies only, not more than that.

[harapan]

Calling Gold the past has to be an insult. Banks are buying goal to back up their depreciating fiat currencies and you still go on to call gold the past. I get that we all want to promote bitcoin but doing undermining other quality assest because you want to praise bitcoin is  not just fair. I will say Bicton and Gold can work together in the long run and you must respect Gold for the longetivity it’s had all over years. Both Bicton and Gold are tested to have withstand whatever inflation that may have come it’s way. I will say they can all work together but Bitcoin is also the future.

[Hypnosis00]

Gold and bitcoin will definitely secure your wealth if you know how to manage its volatility for long term, most especially for bitcoin where price volatility and price fluctuations are seen most of the time. If you are weak, the rate of success might certainly low, but if you are one of those diamond hands, rest assured success and massive profits will be inevitable in the future.

However, fiat on the other hand is not actually wealth material. But if you know how to manage your fiat expenses and still find time to maximize saving than spending, it could still be of great use in the future. Save fiat so you can secure your emergency funds which is definitely an essential.

[Dogedegen]

If it's just to preserve wealth from being eroded by inflation, the best option is gold. Money is clearly bad because year after year its purchasing power continues to be eroded due to inflation. So if wealth assets are only stored in the form of fiat money, it will certainly be a big loss because instead of increasing, its value will make us poorer as its purchasing power keeps declining. Therefore, money is better used for investment, to work, earn more money, and find its companion.

No it is not. Bitcoin is better by gold in every way. You can't just pick an asset that has worse performance and declare it as the best option for no valid reason whatsoever.

But if you understand and analyze crypto well, the best is to keep it in the crypto world because its value will continue to rise, and the asset value will increase, meaning you become richer.

This is wrong on many levels because most people who invest into random crypto projects lose money in the end. There is no guarantee that the value of any of those useless projects will increase. In most cases it decreases. Do you not know that in percentage terms 99.99% of altcoins have collapsed in value? Maybe even 99.999% I would need to check the numbers. There are several millions of coins and tokens, and less than 0.01% have retained any value at all.

I'll be brief, but there are some nuances
The most common fineness for jewelry is considered to be 585 (14 karat gold). The reason is simple: it is more affordable and has better physical characteristics. There are even statistics on the popularity of gold fineness around the world:
- Europe — 585;
- Italy, UAE — 750;
- Asia — mostly 916 (22K) and even 999;
- USA — 585 and 417 (10K).
Therefore, only a small portion of jewelry is equivalent to bank gold. At the same time, jewelry is always purchased at a discount. So, jewelry is certainly valuable, but it loses out in terms of “value” to bank gold bars.

People buy that 14 karat because they can't afford better quality stuff, not because they choose it. Anyway very few people would buy bank gold bars at all so I don't see what is the point of discussing this. It's like discussing the usefulness of investing in huge yachts for the average person. Almost nobody will be able to do it, so what is this purpose? As I said, jewelry is good for the average person because it can be used for dual purpose. If it is used or kept for a long time, it will be possible to sell it for a higher price than when it was acquired because of the appreciation of the value of gold.

[DrBeer]

People buy that 14 karat because they can't afford better quality stuff, not because they choose it. Anyway very few people would buy bank gold bars at all so I don't see what is the point of discussing this. It's like discussing the usefulness of investing in huge yachts for the average person. Almost nobody will be able to do it, so what is this purpose? As I said, jewelry is good for the average person because it can be used for dual purpose. If it is used or kept for a long time, it will be possible to sell it for a higher price than when it was acquired because of the appreciation of the value of gold.

Bank bars are available for purchase starting at 1 gram, just like jewelry. However, unlike gold in jewelry, bars do not lose their value significantly.
It is true that gold jewelry can be sold more or less quickly in case of extreme necessity, but there is also a second fact: a significant loss of initial value, which does not make jewelry a profitable asset for preserving value. This is especially true if we are talking about non-wealthy owners who buy ordinary jewelry without high artistic or historical value.

And the simplest argument is that all pawnshops ALWAYS buy jewelry that has been owned by people at a significant “discount” on the price. That is, if you buy a ring for $1,000 and immediately take it to a pawnshop, you will get $750 at best. This is simply because it makes no sense for a pawnshop to buy it at its real market price, as they still need to sell it at a competitive price to another buyer and make a profit between the purchase price from you and the sale price to another person.

[justdimin]

Bank bars are available for purchase starting at 1 gram, just like jewelry. However, unlike gold in jewelry, bars do not lose their value significantly.
It is true that gold jewelry can be sold more or less quickly in case of extreme necessity, but there is also a second fact: a significant loss of initial value, which does not make jewelry a profitable asset for preserving value. This is especially true if we are talking about non-wealthy owners who buy ordinary jewelry without high artistic or historical value.

And the simplest argument is that all pawnshops ALWAYS buy jewelry that has been owned by people at a significant “discount” on the price. That is, if you buy a ring for $1,000 and immediately take it to a pawnshop, you will get $750 at best. This is simply because it makes no sense for a pawnshop to buy it at its real market price, as they still need to sell it at a competitive price to another buyer and make a profit between the purchase price from you and the sale price to another person.

Getting a few of them every month is the best investment choice in my nation, or more like "preferred"? No idea, basically there was a calculation done by some banks and turns out people just simply invest into those things banks give out, it's 1 gram and 2.5 gram and 5 gram gold, there are more too if I am not wrong but those ones I am sure of.

So people, depending on their income of course, goes and gets at least 1 gram and put it aside and do that every time they get some money, and if you bring five 1 grams then you can turn that into one 5 gram too, without a cost. So it really works out great, without much trouble, and it's really a great way of investment and my nation prefers that as the best investment there is. I prefer bitcoin, but I can see why that would be great too.

[leonair]

Gold and Bitcoin can certainly maintain their value and at the same time be profitable. But cash money can never maintain its value. This is because there is a very high level of inflation every year, due to which the longer the currency can be held, the more its value will decrease. But the price of Bitcoin creates new values ​​​​every season. And each new record is much larger than the previous recording. So it is certainly believed that if you keep Bitcoin money, its value will not decrease, but rather its value will increase in the long term. The same is true for gold because gold is gradually increasing and it has been considered a very strong asset since ancient times. So I would never prefer to hold the cash.

[Richbased]

All three are still relevant but when we talk about security, nothing beats bitcoin in terms of securing one's wealth because it allows you to be in custody of your own money and how you transact with it without any restriction or involving a third-party. Do you know what it feels like to have your own security keys to your own money? you can even abandon your bitcoins for years and still come back and it's still intact without any stories as bank does. Nothing beats sleeping with your both eyes closed that your money cannot be tampered with and it's only bitcoin that can give you such level of security that your money is safe anytime, anyday.

[Renampun]

Gold and Bitcoin are two things that can secure your wealth. with gold, you can store your wealth in a stable, trusted physical asset for thousands of years. it's also more stable in the long term, and you can sell it anytime you want without worrying about extreme volatility.

bitcoin is also a great asset for securing your wealth, it's a digital asset that gives you the ability to fully manage your assets and transfer them anywhere without relying on a third party, although Bitcoin tends to be more volatile in the short term, its long-term potential is quite good, and it could even outperform gold.

as for cash, you should not rely on it to secure your wealth because it is only good for use for daily transactions, it does not have long-term resilience against inflation, and if you hold cash long-term, its value will slowly erode over time as inflation reduces its purchasing power.

[STT]

I wouldn't even state Gold as the past tense  etc.  but I do agree with using time frames.
  Cash is quite fine for a short term measurement, the largest problem for the common worker is their annual pay settlement ages badly even over 12 months they lose money in this way.  Also a person cannot save cash without losing value.

So its more about duration of value then just a sitting perspective, the depreciation in cash is rapid and makes the poorest worse off from their constant losses.   Gold has a duration requiring people to hold it for ten years or more possibly, most don't have this patience or wealth to carry out this strategy.

Hence BTC with its limited availability and known production is faster then gold but far more durable then cash value retention.  With this thinking we might have some idea of what inspired Satoshi to attempt his new standard of exchangeable value.
  I say attempt as its still an ongoing project but most would say a very good one to produce out of seemingly nothing to a new asset, for growth reasons alone people should favor BTC; as gold is old and cash is trash but BTC is growth surely.