path of bitcoin vs gold

[sleepfirefly]

yet another post about bitcoin comparing it to gold. but has anyone really wondered about the development of gold and how it compares to bitcoin or vice versa?

first of all, gold was first used as a currency back in the olden days. it was the medium of exchange. you can buy goods and services using gold. until gold was made to back up cash because it was too inconvenient to bring gold all the time. up until monetary systems couldn't handle economic crises and had to print more money hence making cash backed by gold limiting. fast forward to now, gold is seen more of a store of value or an investment.

almost similar to bitcoin. it first served as a medium of exchange between peers and no banks in between. the difference though is that unlike gold, bitcoin has no physical form hence wasn't inconvenient to use for daily transactions. eventually it grew and now companies, etfs are offering bitcoin. more people are looking at bitcoin as a store of value hence why it is now being compared to gold so much.

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

[Aanuoluwatofunmi]

yet another post about bitcoin comparing it to gold. but has anyone really wondered about the development of gold and how it compares to bitcoin or vice versa?

Just try to make search on the forum and see several threads that have been created in the past talking about Bitcoin in relation to gold, so if I may say it in this way, it is no longer a new thing that we see various opinions on how people compare Bitcoin to gold or gold to bitcoin as the case may be.

Today, the current gold everyone is having or liable to have his bitcoin and it's a digital one, the traditional goal is no more evolving because of decentralization and the regulation guiding it together with the risk we cannot do without when when talking about physical gold, what's today, bitcoin is our digital gold everyone can have access to and invest to be profitable and there are a lot of advantage over this if choosing as your preferred asset or digital currency.

[Hatchy]

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

Honestly if we begin to compare the qualities of bitcoin to that of gold we might simply end up in a long discussion without any final say.. bitcoin is called digital called in terms that just like the physical gold, it is precious. It was first of its kind to liberate the financial system from the hands of the government.  Till now, bitcoin has not failed to fulfill it's purpose. Its just that people seems to be more concerned about the profit aspect of bitcoin investment. People are not willing to use bitcoin for everyday transactions but as a store of value..they prefer to spend their fiat currencies that lose value to inflation and hoard their hard money for the future.. But that doesn't change its purpose.. it's still very much decentralised.. Gold long ago, indirectly lost it's purpose and now I'd just a tool used by the government to manipulate their economy..

[Gost ms]

yet another post about bitcoin comparing it to gold. but has anyone really wondered about the development of gold and how it compares to bitcoin or vice versa?

first of all, gold was first used as a currency back in the olden days. it was the medium of exchange. you can buy goods and services using gold. until gold was made to back up cash because it was too inconvenient to bring gold all the time. up until monetary systems couldn't handle economic crises and had to print more money hence making cash backed by gold limiting. fast forward to now, gold is seen more of a store of value or an investment.

almost similar to bitcoin. it first served as a medium of exchange between peers and no banks in between. the difference though is that unlike gold, bitcoin has no physical form hence wasn't inconvenient to use for daily transactions. eventually it grew and now companies, etfs are offering bitcoin. more people are looking at bitcoin as a store of value hence why it is now being compared to gold so much.

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

If we compare gold and Bitcoin at present, then we will definitely say that Bitcoin is much better than gold and will be able to surpass gold very soon. Gold has been in the market since ancient times and Bitcoin has been in the market for a few days, but during this time, the price of Bitcoin has increased a lot and the acceptability of Bitcoin is increasing in the whole world. If a person currently buys Bitcoin worth 5 thousand dollars and buys gold of the same value and keeps it for a long time, then he can profit much more than gold in the future.

it first served as a medium of exchange between peers and no banks in between

The main goal of creating Bitcoin was to remove the intervention of a third party from financial management. For example, currently we transact through banks and keep our money in the bank, if the bank wants, they can run away with all our money. Satoshi Sir created Bitcoin with this goal so that this middleman does not exist between us.

[macson]

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

Today we can see that people are increasingly reluctant to transact their Bitcoin because the potential for future value increases is considered more attractive than using it as a means of transaction --- and as Bitcoin's value increases, it's likely that people will prefer it as a store of value rather than a payment method.

But that won't change Bitcoin. Bitcoin will remain its function as a digital currency. Whether more people use it for storing value or not in the future, it won't change its function as a peer-to-peer payment system. So whatever the future holds, Bitcoin will remain what it is, usable by anyone, for transactions or storing value.

[Mrbluntzy]

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

Bitcoin is a store or value and it's also a currency, it has never stopped serving the purpose it was designed for by Satoshi and it's not going to stop serving a vast purpose for which different individuals wants to use it for. Some Bitcoiners have used their Bitcoin to purchase different valuables such as house, car, accessories and they did that after the Bitcoin they held for some years had increased in value up to the price they had in mind to spend the coins. So, Bitcoin is serving it original purpose.

[Darker45]

In this context, it seems they're different in that gold more or less started as a widely used currency but Bitcoin didn't. Although Bitcoin is designed as money, it didn't really function as such in the beginning. Apart from a number of dark net marketplaces early on, Bitcoin wasn't really accepted as money. So, it's probably the other way around for Bitcoin. The perfect time for it to function as money is yet to come.

[yhiaali3]

I don't know if this is the end, but for now, I can say that governments and large corporations are using Bitcoin as a store of value. Perhaps Bitcoin will one day return to its original purpose: a peer-to-peer payment method that eliminates the need for a third party.

Wasn't this the beginning of gold? I mean, wasn't gold used for thousands of years as a means of payment before it became a safe haven and a store of value?

[Text]

for me I think Bitcoin is still in its transition phase. In the early days people used it more for peer to peer payments but as the price increased & adoption grew many started treating it like digital gold because of that people prefer to hold it rather than spend it especially if they believe its value will keep rising so in my opinion it’s probably not a dead end. Bitcoin might end up having two roles at the same time, a store of value like gold & a payment network for peer to peer transactions

[SquirrelJulietGarden]

yet another post about bitcoin comparing it to gold. but has anyone really wondered about the development of gold and how it compares to bitcoin or vice versa

Development of gold, do I read something new that I've never known before?

In my opinion, gold has a very long history and there is no more development for it. All the utilities, use cases of gold are already known and there will be only changes in gold adoption and it's total and circulating supplies with time.

Gold no longer has huge potential of further developments and changes like Bitcoin. They are different asset classes and Bitcoin has big advantage compares to gold in further developments and changes. Being digital and blockchain-based, decentralized, gives Bitcoin very good opportunity for developments, upgrades, and growths in the future.

[d5000]

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

I think it will evolve into a hybrid, with the potential of more "currency" usage. But first two problems will have to be solved:

1) Scalability. Bitcoin can handle the current transaction volume, but an adoption as a currency would mean a much higher amount. Lightning alone is not enough for a really massive adoption.

Crucial technologies for me are sidechains and Ark. Both have still problems, the few interesting sidechains or similar technologies (Stacks, tBTC, Thorchain) are based on incentives created by premined altcoin tokens. But sidechains can potentially onboard billions of persons. Ark is more centralized but the entities managing Ark accounts cannot run away with your money. It is currently in beta.

2) Volatility. We can wait for Bitcoin to become less volatile once adoption continues, and the trend is very clear. But I think there are also possible technological solutions. I think for example that it would be possible to create a Bitcoin-based stablecoin based on the average price of the last 2 or 4 years which would be much less volatile and barely lose value in bear markets.

Once volatility lowers, I think people will use Bitcoin still as a speculative means, but people will adopt a more "relaxed" attitude. It will be more like a "value investment" stock, i.e. there would not be widespread panic selling anymore due to some news. That would make it also more difficult for shorters to break through supports and cause massive liquidations.

This "relaxed" attitude will be beneficial for merchants, people sometimes will like to spend their BTC instead of selling them (in the case of bear markets) or hoarding them due to FOMO.

[sheenshane]

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

They are still different, and I can't compare them, IMO.
You've said it already, it's convenient to use.  Bitcoin may be used in daily transactions, micro or big transactions.
Anyone with internet access could transact without permission or even without using a third party, which could drive everyday use in remittances, microtransactions, and cross-border payments, which gold can't do that way.

Remember that gold has a limited supply, while Bitcoin doesn't.
People will invest to store value, but eventually will use it as a payment or to cut profit.

[Pi-network314159]

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

Bitcoin is already an asset and a great store of value. Bitcoin has come to stay,  it can not come  and fade away like gold because it has a potential for long time value. If Bitcoin going back to it original purpose is to be used for exchange then it is not possible because Bitcoin is already used for both purpose of exchange and also an asset for store of value. Why gold Lost it original purpose of exchange only for asset is because it was inconvenient to use unlike Bitcoin is convinient. But in the other hands Bitcoin is convinient and can be used as a store of value. So Bitcoin can not go back to be used only for exchange because it's advantage is way higher than gold.

[BALIK]

In this context, it seems they're different in that gold more or less started as a widely used currency but Bitcoin didn't. Although Bitcoin is designed as money, it didn't really function as such in the beginning. Apart from a number of dark net marketplaces early on, Bitcoin wasn't really accepted as money. So, it's probably the other way around for Bitcoin. The perfect time for it to function as money is yet to come.

Will we ever have the chance to see Bitcoin recognized and used as a currency in line with its original purpose someday?

To be honest, I seriously doubt that. The government is unlikely to allow this because their power would be weakened if they lost control over the monetary system. Secondly, perhaps people also do not want to use Bitcoin as currency. Most people view bitcoin as an investment, and not many people want to use bitcoin for spending.
The chances of Bitcoin becoming and being used as an official and legal currency are very low.

[Sunshine1525]

The debate between Bitcoin and Gold is endless cause different investors would have their preference and reasons to criticise each other but both are good asset that I feel should be embraced, I wonder what stops anyone from owning both instead of picking a side.

Although we're in a digital era and almost everything including job opportunity are now online therefore more people in our time would prefer owning a good digital asset like Bitcoin that's easy to move about, offers faster means of transaction and more easier to secure compared to Gold.

[GeorgeJohn]

yet another post about bitcoin comparing it to gold. but has anyone really wondered about the development of gold and how it compares to bitcoin or vice versa?

In this forum we have discussed the comparison of Bitcoin and Gold, so many times, and same answers has been given...And their's no new thing that will be suggest of Gold and bitcoin...

first of all, gold was first used as a currency back in the olden days. it was the medium of exchange. you can buy goods and services using gold. until gold was made to back up cash because it was too inconvenient to bring gold all the time.

Even till now, gold is been used as means of exchange, it has not stopped, people are trading on gold on daily basis, And people are buying goods with gold as a trade by barter, even including money...

it makes me wonder if is this the dead end? will bitcoin continue to be like gold wherein it was once used as a currency but eventually became just a store of value? or will bitcoin later on go back to its original purpose?

But are different names but a digital currencies that execute almost same thing in the world..I will say the purpose bitcoin is been introduced, it has already accomplished 65% of it if I'm not mistaken...bitcoin is a digital currency and today Bitcoin has escalate to the world, if not that government fails to embrace bitcoin it would have been a top notch currency across the world...Bitcoin is not only a stored value, it's also a currency...

[Pablo-wood]

I am of the school of thought that evolution will decide its fate. Although Bitcoin current serve hybrid purpose in that many use it as store of value and others as medium of exchange or both. But over as power continues to change hands we might be privileged to get a leader who believes so much in the blockchain world and specifically bitcoin, not one who will think of it as a reserve or try to create a coin to mimic bitcoin. But a leader who has a wide vision on the decentralized and temper proof nature of bitcoin and see potential in making it a legal tender after the pattern and likes of El Salvador.

[Luzin]

Will we ever have the chance to see Bitcoin recognized and used as a currency in line with its original purpose someday?

I don't think so, not for another 10 years. It's possible but very, very unlikely. I think the development right now is very good, but the development is as a commodity, not as a medium of exchange or currency. This is indeed Satoshi's vision, but the system is very much at odds with traditional finance. The industry will continue to make Bitcoin's value unstable, and that will make countries hesitant to use it as a currency. So far, this industry is based on users' trust because of its value. One proof today is only El Salvador that dares to recognize it as a currency. It's been a long time since any other country followed. So other countries just exploit its value, and holding Bitcoin is too risky if they were to use it as a medium of exchange. IMO

[Iranus]

The debate between Bitcoin and Gold is endless cause different investors would have their preference and reasons to criticise each other but both are good asset that I feel should be embraced, I wonder what stops anyone from owning both instead of picking a side.

Indeed, the debate between gold and bitcoin will never end because we are all different. Everyone has different preferences and risk tolerance levels, so their choices will also differ.

You are right, both are good assets and we can invest in both. But it is hard to understand why some people always like to compare and speak ill of one side or the other. I really do not understand what they gain from trying to impose their thinking on others, or winning an online debate. Meanwhile, the goal of investing is profit, not trying to prove yourself right to anyone.

[Itz-prisigold]

I think it's fascinating how people are comparing Bitcoin to gold; however,  "digital gold"  is much more than just that, gold was considered a currency for centuries before it became the primary store of value it is today,  whereas Bitcoin is doing this same thing just over decade.  One of the major differences is that Bitcoin is digital therefore it is much easier to send, split, and use globally.

This could allow Bitcoin to return to its original purpose as a real currency for daily uses rather than an investment alone,  and I think a large portion of people see it solely as a store of value because of ETFs and other companies holding it,  but Bitcoin's original purpose to act as digital cash in a decentralized manner, without the use of a commercial bank is still there. If adoption grows and payment system improves, Bitcoin can be viewed as a long term store of value,  while also being something that can be used for everyday transactions.