path of bitcoin vs gold

[Danica22]

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?

Talking about the originality in purpose for Bitcoin, I don't think has ever deviated from that, it actually still serve its purpose, you choose that which you want to use it for at any time it fits into the demand. Bitcoin has grown beyond just been limited to a single function at a time, same with gold, where permitted, it can serve as a currency, a legal tender and also a store of value. I think both Gold and Bitcoin currently serve as both currency and store of value.

It is not entirely accurate to say that Bitcoin has deviated from its original purpose. Because we can still use it for payment if we want.

However, it must be acknowledged that most of us are simply treating and using it as an investment most of the time. We very rarely use it as currency or for payment. Furthermore, the truth is that it is not legal tender like fiat. We can only use it for payment when there is an agreement between the two parties or only in certain areas where it has been legalized. We cannot use it for payment everywhere and at all times like fiat.

Similarly, gold is no longer used as legal tender today.

[mindrust]

Own both, end of the story. That way you won't have to wonder if you are making the wrong decision because you'll have positions in both assets. I do exactly that and I have no rugrats so far. Gold is outperforming? Fine, I got gold. Btc is mooning? Fine again, I got btc. I don't care which one is doing a moon shot because I got both. Bitcoin is crashing? Fine. If you like bitcoin at $100k, you'll love it at $50k. Amazing. I wish btc was $1. I would have loaded up the truck. Same for gold. Imagine buying gold from $1. We would be kingz.

[tiCeR]

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?

Considering the initial block size and the time before the bitcoin protocol update (SegWit) in 2017, it was obvious that bitcoin couldn't serve as a p2p cash platform on a global scale. The number of transaction was and is so low that in its current state it could never serve as the p2p cash we all know from daily fiat transactions. The capacity just doesn't allow for it.

That is why I am sometimes wondering whether bitcoin's path was clear from the start. If the network grows as big as it is now, it would automatically turn into a store of value rather than p2p cash. Unless there are advancements/improvements on the technical side, a store of value is probably the most likely function that bitcoin will maintain for now.

Limited transaction capacity might also contribute to volatility. If the capacity was much higher, velocity and adoption might be much higher, and my guess is it would contribute to decreasing volatility as it can go back and forth between network participants faster and cheaper. Any friction in the system slows down velocity and prevents adoption speed from increasing. I don't know by how much, but that is what I think negatively impacts bitcoin in some way.

[Smack That Ace]

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?

Talking about the originality in purpose for Bitcoin, I don't think has ever deviated from that, it actually still serve its purpose, you choose that which you want to use it for at any time it fits into the demand. Bitcoin has grown beyond just been limited to a single function at a time, same with gold, where permitted, it can serve as a currency, a legal tender and also a store of value. I think both Gold and Bitcoin currently serve as both currency and store of value.

Honestly, have you ever used Bitcoin for its original purpose? Have you ever used bitcoin to pay instead of fiat? Or have you only ever viewed it as an investment tool and a way to get rich?

It could be said that Bitcoin’s original purpose has not been entirely forgotten, but it has clearly strayed from its original path. Nowadays, when we talk about bitcoin, most of us immediately think of it as a investment. Even people like us who understand its original purpose very well only use it as an investment, nobody wants to spend their Bitcoin. How can we say that it has not deviated from its original purpose? And we ourselves have contributed to that.

[TokenTikas]

This is why I don't think that Bitcoin will become like gold, despite the fact that I know that most people in the current times are using Bitcoin mostly as either a store of value or an investment, but since it will always have its original purpose alive, it can always become more than just an investment asset or a store of value.

Yes agree with you. He already pointed out the real difference and you also explained that difference very clearly here. In fact, how beneficial bitcoin is for us can easily be understood when we compare it with the use and transportation of physical gold. Gold has been a valuable asset since ancient times and it has a physical form but even though it is valuable, carrying and using it can be quite difficult. On the other hand, Bitcoin is a digital currency that is very easy to carry and can be accessed from anywhere while maintaining a strong level of privacy.

The difference between gold and bitcoin is quite clear. In today’s modern world, Bitcoin is far ahead when it comes to privacy and ease of access. Everyone wants security, and through privacy we want to manage and control our assets without unnecessary exposure and bitcoin has created that opportunity for us. Gold has been a valuable asset since ancient times but in the modern world bitcoin has become even more valuable in many ways.

[JiiBs]

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?

While Gold served as a currency, there was a universal acceptance of it to serve in that regard due to its value not just as currency but, as a jewelry and subsequently, it is now serving as a store of value and jewelry still.

What does that tell us?

It simply means, these commodities with the ability to function distinct of purpose would always find means to add value to themselves based on how an individual chooses to perceive and use it. Bitcoin haven’t really served as a currency due to the fact that, it hasn’t got a universal acceptance about it at this time. Bitcoin though might have being mildly used by some, it’s served more as a store of value and can easily shift to its intended purpose by the developer much later.

[Zoomic]

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.

It is not out of place to compare bitcoin and gold. In as much as bitcoin continues to exist, it must be compared with gold. Don't also forget that bitcoin has been referred to as digital gold.

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.

imo, the only way for bitcoin to return back to currency only mode without digging more dip into investment asset is for bitcoin to become stable in price. If the price stablizes, people will see need selling their btc and using it for transactions. But for the fact that bitcoin has limited supply, achieving price stability will not be possible.

[Mahiyammahi]

I think that the future of Bitcoin is not limited to digital gold. Gold has gradually moved away from the medium of exchange because of its practical limitations, but on the other hand, if you look at Bitcoin, its technology is constantly improving. Solutions like the Lightning Network have not only made Bitcoin a fast and low-cost transaction system, but it is also a store-of-value payment system. I think Bitcoin will probably create a new hybrid model where both savings and transactions are possible at the same time.

[MarjorieZimmermanGinger]

It could be said that Bitcoin’s original purpose has not been entirely forgotten, but it has clearly strayed from its original path. Nowadays, when we talk about bitcoin, most of us immediately think of it as a investment. Even people like us who understand its original purpose very well only use it as an investment, nobody wants to spend their Bitcoin. How can we say that it has not deviated from its original purpose? And we ourselves have contributed to that.

There's a reason why Bitcoin isn't used as a means of transaction like fiat currencies, and for me personally, it's more due to regulations in the country where I live, where we are only allowed to use Bitcoin as an investment asset. While online shopping might offer opportunities, I personally see the investment opportunities as far more profitable than using Bitcoin as a means of transaction. Imagine a Bitcoin price that's quite speculative and we painstakingly strategize to buy it, only to spend it on a transaction when there are alternatives like fiat currencies that we can use. I think that's why some people are reluctant to use Bitcoin for transactions when they want to buy something because there are other, far more relevant alternatives, in some of our minds.

[Abiky]

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?

The "gold comparison" is often due to Bitcoin's store of value properties. It's scarce by design, and truly censorship-resistant. Not to mention, Bitcoin is portable. Because of "Wall Street" and the mainstream media's propaganda that Bitcoin is "Digital Gold", Bitcoin has lost its "essence" in being used as "Peer-to-Peer Electronic Cash".

Most people only buy and "hodl" Bitcoin with the hopes of getting rich in the long run. Only a very small minority actually uses it as a currency. With many centralized exchanges, institutional investors, banks, and governments hoarding Bitcoin, we will reach a point where we are obligated to comply with KYC just to buy/sell BTC. But that's another subject. There are many predictions that someday Bitcoin will replace Gold. If it becomes a reality, it would be a game-changer. The odds are slim, but there's nothing wrong with "dreaming".

[dezoel]

As long as bitcoin exists, I will prefer bitcoin over anything else. Not altcoins, not gold, not stocks, nothing else. Bitcoin is far superior to all else for me and I have believed that since I joined.

I understand why someone would be against that, not saying that's wrong, but that doesn't mean that I will trust that for the longest period. I understand people may prefer gold, and if you must then I suggest diversification so you have both bitcoin and gold at the same time.

[Overtronbot]

Bitcoin doesn’t have to follow gold’s exact path. Gold became mainly a store of value because it is physical and inconvenient for daily use, while Bitcoin can still be both a store of value and a payment network.

Right now the market treats Bitcoin more like digital gold, but that doesn’t mean its original purpose is dead. It just means its store-of-value role is winning at this stage of adoption.

So no, I don’t think this is the end point. Unlike gold, Bitcoin can still evolve back into wider everyday use as infrastructure, speed, and payment layers improve.

[uchegod-21]

There are lots of assets apart from bitcoin and gold that are  still stores of value. Assets like :
Silver
Real Estate
Stock
Natural resources like oil
Collectibles etc

From either of them (including gold and bitcoin), choose the one you can afford to invest in and which you understand very well. You do not need all of these confusion. Alot has been said about Bitcoin and gold and I just want to.let you know that they are not the only stores of value.

If you seek what you can use as a means of payment, cryptocurrencies and fiat are still there for you.

[peter0425]

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?

Talking about the originality in purpose for Bitcoin, I don't think has ever deviated from that, it actually still serve its purpose, you choose that which you want to use it for at any time it fits into the demand. Bitcoin has grown beyond just been limited to a single function at a time, same with gold, where permitted, it can serve as a currency, a legal tender and also a store of value. I think both Gold and Bitcoin currently serve as both currency and store of value.

It is not entirely accurate to say that Bitcoin has deviated from its original purpose. Because we can still use it for payment if we want.

However, it must be acknowledged that most of us are simply treating and using it as an investment most of the time. We very rarely use it as currency or for payment. Furthermore, the truth is that it is not legal tender like fiat. We can only use it for payment when there is an agreement between the two parties or only in certain areas where it has been legalized. We cannot use it for payment everywhere and at all times like fiat.

Similarly, gold is no longer used as legal tender today.

Because as mentioned, gold was and is still inconvenient to use. But bitcoin is and will not be. I am seeing more and more physical stores offering bitcoin and there is a good possibility that countries will no longer “villainize” bitcoin and let people just use bitcoin as they like.

[Abiky]

As long as bitcoin exists, I will prefer bitcoin over anything else. Not altcoins, not gold, not stocks, nothing else. Bitcoin is far superior to all else for me and I have believed that since I joined.

I understand why someone would be against that, not saying that's wrong, but that doesn't mean that I will trust that for the longest period. I understand people may prefer gold, and if you must then I suggest diversification so you have both bitcoin and gold at the same time.

Most investors prefer gold because it's a tangible asset. It can be used during times of crisis when there's no power or Internet access. With Bitcoin, that's not possible. While that is the case, Bitcoin has a few advantages over Gold. Mainly portability, and cost-efficiency. It's much more convenience and cheaper to carry Bitcoin with you anywhere than Gold itself.

Personally, I'd diversify into BTC and Gold for complete piece of mind. If you put all of your eggs in one basket (like investing only in Bitcoin), you'd risk yourself of losing it all if the market goes down all of a sudden. Unlike Gold, Bitcoin is extremely-volatile. But no more so than altcoins. Yet, "Wall Street" is keen on making Bitcoin the successor of Gold. Will this become a reality in the future? Maybe, maybe not. What's important is that Bitcoin remains decentralized. As long as nothing (or no one) can "shut it down", there should be nothing to worry about.

[Fivestar4everMVP]

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 still used as a currency for payment for goods and services in different places and cities around the world, that you haven't seen is simply because you haven't looked, and due to how convenient it is to access/own bitcoin (unlike gold), I think bitcoin will not end up as only a store of value just as gold ended up as, bitcoin will continue to remain as both store of value and also a medium of exchange for goods and services..

And let me also say that it's true that not every one will accept bitcoin for their goods and or service, but the fact remains that bitcoin is always open for any one willing to integrate it into their list of accepted payment system, and it's no hassle and it's free too, gold is so very inconvenient to own, while bitcoin is, this is one distinct difference that sets both of this assets apart and why both won't end in the same fate.

[fuguebtc]

As long as bitcoin exists, I will prefer bitcoin over anything else. Not altcoins, not gold, not stocks, nothing else. Bitcoin is far superior to all else for me and I have believed that since I joined.

I understand why someone would be against that, not saying that's wrong, but that doesn't mean that I will trust that for the longest period. I understand people may prefer gold, and if you must then I suggest diversification so you have both bitcoin and gold at the same time.

Most investors prefer gold because it's a tangible asset. It can be used during times of crisis when there's no power or Internet access. With Bitcoin, that's not possible. While that is the case, Bitcoin has a few advantages over Gold. Mainly portability, and cost-efficiency. It's much more convenience and cheaper to carry Bitcoin with you anywhere than Gold itself.

Personally, I'd diversify into BTC and Gold for complete piece of mind. If you put all of your eggs in one basket (like investing only in Bitcoin), you'd risk yourself of losing it all if the market goes down all of a sudden. Unlike Gold, Bitcoin is extremely-volatile. But no more so than altcoins. Yet, "Wall Street" is keen on making Bitcoin the successor of Gold. Will this become a reality in the future? Maybe, maybe not. What's important is that Bitcoin remains decentralized. As long as nothing (or no one) can "shut it down", there should be nothing to worry about.

Most people still prefer gold not only because it is tangible but also for its history. It has existed for thousands of years and has proven its worth. Meanwhile, although Bitcoin may be superior, it is clearly still quite young. Therefore, it is not surprising that they still have concerns and doubt about Bitcoin

The first principle of investing is not to make a lot of money, but not to lose money. Therefore, putting all your eggs in one basket is really not a wise idea. It is somewhat similar to gambling and the mindset of wanting to get rich quick


No one can make Bitcoin the successor to gold. Only it can do that, and the only way is for it to prove it to everyone.

[Smack That Ace]

It could be said that Bitcoin’s original purpose has not been entirely forgotten, but it has clearly strayed from its original path. Nowadays, when we talk about bitcoin, most of us immediately think of it as a investment. Even people like us who understand its original purpose very well only use it as an investment, nobody wants to spend their Bitcoin. How can we say that it has not deviated from its original purpose? And we ourselves have contributed to that.

There's a reason why Bitcoin isn't used as a means of transaction like fiat currencies, and for me personally, it's more due to regulations in the country where I live, where we are only allowed to use Bitcoin as an investment asset. While online shopping might offer opportunities, I personally see the investment opportunities as far more profitable than using Bitcoin as a means of transaction. Imagine a Bitcoin price that's quite speculative and we painstakingly strategize to buy it, only to spend it on a transaction when there are alternatives like fiat currencies that we can use. I think that's why some people are reluctant to use Bitcoin for transactions when they want to buy something because there are other, far more relevant alternatives, in some of our minds.

Yes, regulations and legal barriers prevent many people from using bitcoin as a means of transaction like fiat currencies. However, the biggest barrier is ourselves. Most people do not want to spend their Bitcoin and only want to profit from it, as you have admitted, but many others do not dare to admit it.

The naked truth is that not many of us view or want to use Bitcoin for its original purpose. Just like what happened in El Salvador. Bitcoin was legal tender there for 4 years, but numerous surveys show that 90-92% of people are unwilling to use bitcoin as a currency for payment. People still prefer using fiat and other payment methods.

[Danica22]

Because as mentioned, gold was and is still inconvenient to use. But bitcoin is and will not be. I am seeing more and more physical stores offering bitcoin and there is a good possibility that countries will no longer “villainize” bitcoin and let people just use bitcoin as they like.

Agreed. More and more traditional store and companies are accepting Bitcoin payment. But that only happen in a few countries, and they need government permission. No store would dare accept bitcoin if the legal regulation remain unclear or have not yet been approved. Unfortunately, there are still not many countries that are open or have a clear legal framework for the use of Bitcoin as a means of payment.

Even if government become more friendly towards bitcoin, I do not think they will allow us to use bitcoin the way we like. I do not believe any government would allow a monetary system to exist outside their control.

[purple_sparkles]

I think it all depends on habits and the possibilities of using it. In places where it is possible to pay with bitcoin almost everywhere and where the necessary conditions and conveniences are created, bitcoin will be used much more widely.In countries where people talk less about bitcoin and are more used to fiat, they will continue using fiat. For them, the main reason to buy bitcoin will be as an investment to protect their savings from inflation. However, if more opportunities to pay with bitcoin appear around them, they may also start switching to that payment method.
Especially considering how banks want to monitor and control all our financial transactions. People, particularly those who have already faced situations where the bank demands explanations about who they sent money to or why someone sent money to them, may become more open to alternatives like bitcoin.