Why Bitcoin is Compared to Gold.

[Danica22]

Bitcoin is decentralized which gives it absolutely independence but Gold isn't completely decentralized.

Gold is also decentralized, it is distributed throughout the world, and no one can control its supply. However, because it is a physical asset, it will not be as flexible or achieve the same level of decentralization as Bitcoin

To be fair, they are different, one is a physical asset and the other is a digital asset. Therefore, comparing them and focusing only on certain aspect to arrive at biased assessments is unreasonable

Each type of asset has its own advantage and disadvantage, as well as its own specific use case.

[snowpega]

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Not only currently, but bitcoin is also getting more valuable and in demand with the passage of time because of many good factors. Like, it has its specific supply that can not be increased, and there is only 21M supply of bitcoin officially, and some supply is still locked and being mined. Secondly, its is decentalized currency which gives more power to its owner or its holder. It is the biggest market capital crypto currecny that exists in the crypto space. Altogether, these facts make it digital gold.

And, other than this, there are still some factors that I am not mentioning here. This is the reason why people compare Bitcoin with Gold. Gold is a rare asset, which is why it has more demand in the physical market. There is no official statement that Gold has a specific supply in this world, but what makes it more demandabel is that it is a rare asset or hard to find and mine. CMIIW!

[JiiBs]

To be fair, they are different, one is a physical asset and the other is a digital asset. Therefore, comparing them and focusing only on certain aspect to arrive at biased assessments is unreasonable

A lot of differences do exist between Bitcoin and Gold. One of the reasons why they both come into comparison often is due to the fact that, they both in today are serving as an asset and a reserve currency. Most people who buy either of these commodities often have either of these goals in mind, given their ability to serve in both capacities.
Hence, there is the need to properly compare on an individual base to determine which one, would benefit you the most or would make much sense owning and a lot of new investors in today prefers Bitcoin.

[Queen uloma]

Bitcoin is often compared to gold because, like gold, it is not tied to any specific country, which allows it to serve as a kind of buffer for preserving wealth. It has its own steadily growing cycle that has been confirmed multiple times, which gives people a sense of security and stability. We can observe similar qualities in gold as well. That’s why it’s not surprising that these two assets are now being compared, and those who want to preserve and grow their savings often choose them.

Bitcoin is a digital global asset that nobody controls, not even the government or any individual. Gold isn’t also controlled by the government or individuals. But Bitcoin is still new compare to gold, and it is very volatile in nature, it goes up and down anytime. Gold has proven itself years back as a stable store of value. People rush to bitcoin because they have that believe that bitcoin price will continue to grow from time to time, but it doesn’t guarantee that it will remain the same in the future, Since price isn’t stable. So, for me if you want to invest your wealth don’t invest in one place, you can invest some in bitcoin, while some in gold or any safer investment that you think is good for you.

[Zanab247]

Both BTC and Gold pump and dump in the market, but BTC is unpredictable, because it can pump higher today and start dump in few days or months compare to Gold many people know when is going to pump and dump. Both BTC and Gold pump and dump to allow their investors make a choice that will profits them in the future, and you need money to invest in BTC and Gold before you can start expecting something good.

Satoshi is the founder of BTC and he or her created BTC for so many reasons which is the benefits BTC users are receiving from BTC. Despite some governments hate BTC, there are some that like BTC, because they took their time to see the difference between BTC and Gold and they discovered that BTC is more profitable than gold in long time hodling.

[TheUltraElite]

There are differences but the reason bitcoin is compared to gold is because of the price. Gold and its high price and bitcoin's huge price rise when it is compared to fiat. These things will always make people think less about investing in these assets and hold them for long term. Therefore bitcoin came to be known as digital gold.

Even then bitcoin should be saved over the long term. Similar to gold, it also has its pros and cons and should be bought and saved whenever the prices fall.

Comparing the two is nothing wrong, but both need to be collected and kept for long term value.

[OcTradism]

There are differences but the reason bitcoin is compared to gold is because of the price. Gold and its high price and bitcoin's huge price rise when it is compared to fiat. These things will always make people think less about investing in these assets and hold them for long term. Therefore bitcoin came to be known as digital gold.

Gold and Bitcoin are compared with each other mostly because people consider these things as investment assets and store of value, so that they want to compare a newer one (bitcoin) with an older one (gold).

Bitcoin has younger age than gold, and it has smaller market cap than gold market cap but Bitcoin has better ROIs in most of recent years while gold ROIs only begin outperforming Bitcoin in two latest years in this market cycle.

People also expect Bitcoin to grow quickly in the future and catch or surpass gold in market cap, and it's another reason they do such comparison between two assets.
https://companiesmarketcap.com/assets-by-market-cap/
https://www.visualcapitalist.com/bitcoin-returns-vs-major-asset-classes/

[Roggeredek]

Both bitcoin and gold are tools for wealth preservation, but bitcoin is proving to be more effective than gold in the modern era due to its digital speed. One big truth is that whether it is bitcoin or gold, investing requires surplus money. When you can invest the extra money here for the long term, excluding your essential expenses, only then will market volatility not be able to scare you.

[ndutndut]

Bitcoin is being compared to gold because bitcoin is the new ''digital gold.'' And just like gold, bitcoin is also used to hedge against inflation but with higher volatility compared to gold itself. Both are also came from a decentralized nature, meaning no central authority that is controlling them.

However, gold is widely considered a safe haven asset, which is quite opposite from owning bitcoin since bitcoin is highly volatile, so its current and future price cannot be guaranteed, unlike gold that is proven to appreciate its value in time.

 

Bitcoin and gold are actually very difficult to compare because they have different characteristics. In terms of portability, gold is difficult and expensive to move, especially in large quantities, while bitcoin is very easy and inexpensive when sending billions of dollars across countries in a matter of minutes. Gold is physical and easily counterfeited, while bitcoin is digital and certainly cannot be counterfeited. However, neither asset can control them. Comparing their characteristics is truly incomparable both have their own advantages and disadvantages.

However, if we compare Bitcoin to gold in terms of their uses and purposes they both serve the same purpose both are seen as stores of value that can protect wealth from inflation, as excessive money printing by central banks can lead to economic uncertainty and even inflation. I understand why you have doubts about Bitcoin as a store of value because it is so volatile. But if you look at the growth experienced by Bitcoin today, many people are adopting Bitcoin and some countries even use Bitcoin as a reserveb, then in my opinion Bitcoin is very worthy of being an asset as a store of value, even Bitcoin with its limited supply will become the rarest asset in the future.

[Renampun]

Bitcoin is often compared to gold because it possesses characteristics like gold, such as scarcity, resistance to counterfeiting, and long-term store of value. therefore, it is often considered "digital gold" in many respects. however, those who understand it will not compare Bitcoin to gold because they are fundamentally different assets.. with each having its own advantages and disadvantages. however, there are still people who try to compare the two, and we can't stop them from doing so because everyone has a different perspective.

[Yorubek]

I think it is not right to compare Bitcoin and gold with each other. Gold has been used for ages and will continue to be used in the future, the common people have full trust in gold because it is a natural valuable resource. On the other hand, Bitcoin was created in 2009.
Although Bitcoin was not well received by the general people at first, it has gradually gained a reliable place in the minds of the general public. The common people are fully trusting Bitcoin because Bitcoin is completely decentralized, the supply of Bitcoin is absolutely limited, the price increases gradually, buy Bitcoin and holding it for a long time, inflation can be avoided in the future and profits can be expected in the long term. Bitcoin has brought complete freedom to the common people, exchanges can be made in a very short time at a very low cost, there is no need to rely on any bank. The government cannot completely control Bitcoin if it wants to. All the opportunities that an investor gets buy Bitcoin and holding it for a long time are never possible in any other asset, so Bitcoin is a valuable asset.  If we look at it from an opportunity perspective, we will see that Bitcoin will be ahead of gold.

[Franctoshi]

Bitcoin can be seen as a digital gold because of some of its similarities with gold, though Bitcoin has other distinctive value when compared to gold, such a being a medium of exchange (money) Bitcoin is truly decentralisation, and it not control by any single or government entity. Bitcoin is a total freedom.

[Hamza2424]

Gold is very difficult to find because of it value, the product gold, can't never controlled by any government or country, because of it's independence, both Bitcoin and gold appeals to people who distrust way out of

one thing you need to also know is that gold is gotten from mining, and Bitcoin is created in a digital system.

Bro, you are wrong about many aspects, but let's just start with the creation of BTC. How is it created? Bro, it is not created but mined. That's how new BTC joins the market. But anyway, I can understand what you mean here. You are comparing the physical state of gold with the virtual state of BTC, but it does not change the fact that BTC is also mined.

Now you said gold can't be controlled by the government because of its independence. I want to say that is wrong. Although buried gold is not under the control of governments because they are not aware of the amount, after mining they control most of it. So don't be under the delusion that gold is decentralized.

[red4slash]

I think in this case when something has value it will always be used as a comparison and this is not the first time and not the only time that it continues to be compared.

We can see from other analogies in soccer such as the never-ending goat messi and Cristiano debate because both have their own base, or in our smallest things, a child is always compared to someone else's child because there is a value that can be considered as a real comparison.
Likewise in finance when gold and bitcoin are always compared it is not a mistake and I would not consider it bad because all have their own basis especially when both are currently always considered as a financial hedging tool that we have from inflation.

Apart from the many differences of opinion and there are always those who support or demean it depending on the capacity of each thought because the most important thing here is the attitude of ourselves as someone who wants to secure ourselves now and in the future.
When we compare and consider one of the best it is purely on the assessment that we see and we are ready with the consequences so that this comparison will continue to exist until whenever.

[Fivestar4everMVP]

Gold has weight, and it's high to export, now Bitcoin is trying to stand what's gold can afford, this both phrase has a high value of standard, one thing you need to also know is that gold is gotten from mining, and Bitcoin is created in a digital system.

Gold is gotten from mining and bitcoin is gotten from mining too, the only difference is that getting gold involves mining the earth with heavy machines and other mining equipments while getting bitcoin involves mining the blockchain which I personal assume or presume to be the digital version of earth, mining bitcoin also requires heavy and very expensive machines and computing systems, read in between the line and see the similarities, no wonder bitcoin is referred to as the digital gold.

Somebody might want to say that in the beginning, people could mine bitcoin even with their CPU powered computer which is right, but so also in the beginning of the gold era, mining gold was just as easy and simple too..

But in all, one disadvantage gold has over bitcoin is that it's heavily centralized, both mining it, oweing it is centralized, meanwhile bitcoin is decentralized, moving gold around isn't that easy, but like you said @op, moving bitcoin around is as simple as putting my favorite food in my mouth, both are the direct opposite of themselves.

[Kelvinid]

If I'm not mistaken, the comparison between bitcoin and gold has only become a big deal when gold has made an unexpected price surge that shock all the gold owners, while leaving bitcoin's price that time going into its dips. Good thing bitcoin at the moment is now going through a slow recovery.

Bitcoin is compared to gold based on its limited supply, decentralization, inflation hedge and durability and scarcity. Both are actually valuable on their own, and so if we can make it a point to stop comparing but acquire them both, we will gain multiple and sustainable profits after years of patiently hodling.

[CryptoYar]

[...]

Whenever one of them is rising and other is falling, it usually leads to loud talk as to why, and it tends to happen as safe and careful investors rush to truth of owning gold, and other investors wait until Bitcoin price is no longer falling. Random price swings of Gold, when it increases, are usually result to big world problems, but now that Bitcoin starts to get better only slowly, it is positive sign of growing market and steady price bottom. They are both said to be hard money in sense that they are limited and not controlled by one group meaning that they act as price rise protection. Supply of Bitcoin is even dropping below amount of gold because of its halving steps, and yet for goal of keeping your list of investments steady Bitcoin is actually dropping supply of gold. I think that best answer will be to not pick between two but to have both keep gold as your support, and use Bitcoin as high growth way, in order to protect yourself in failure of paper money to keep its value.

[Iranus]

Both are actually valuable on their own, and so if we can make it a point to stop comparing but acquire them both, we will gain multiple and sustainable profits after years of patiently hodling.

I have no problem with comparing Bitcoin and gold, as it is a way for us to find the investment option that best suits our needs and preferences.

However, what I disagree with is that some people are biased. They make unfair judgments based solely on personal feelings and preferences rather than on objective data and reasoning. That would not bring any benefit at all.

It seems people have forgotten what their investment goals were. We invest to make a profit, not to prove we are right.

[uchegod-21]

Both are actually valuable on their own, and so if we can make it a point to stop comparing but acquire them both, we will gain multiple and sustainable profits after years of patiently hodling.

I have no problem with comparing Bitcoin and gold, as it is a way for us to find the investment option that best suits our needs and preferences.

However, what I disagree with is that some people are biased. They make unfair judgments based solely on personal feelings and preferences rather than on objective data and reasoning. That would not bring any benefit at all.

It seems people have forgotten what their investment goals were. We invest to make a profit, not to prove we are right.

That is why there is freedom of choice. People will always make decisions based on their personal preferences, whether those decisions are biased or not. No matter how we paint Bitcoin to be the best, a person who so admires the traditional system will always pick gold over Bitcoin just because they trust the centralized, old traditional systems not to fail them. That is their choice.

Now, the most important thing is that both gold and Bitcoin are stores of value. Both can give returns if properly protected from thieves and given some time to appreciate in value. In a world where there is freedom of choice, anyone can choose to invest in whichever they are comfortable with and still remain profitable in the end.

[BALIK]

But in all, one disadvantage gold has over bitcoin is that it's heavily centralized, both mining it, oweing it is centralized, meanwhile bitcoin is decentralized, moving gold around isn't that easy, but like you said @op, moving bitcoin around is as simple as putting my favorite food in my mouth, both are the direct opposite of themselves.

Because it is a tangible asset, gold is quite bulky, which makes it difficult to store and transport. Bitcoin outperforms gold in this respect.

But gold is also a decentralized asset. Because it is not issued or controlled by anyone, and anyone can mine and own it without needing permission from anyone.

Both assets share many similarities, which is why they are often compared to each other. The biggest difference between them is that gold is tangible while bitcoin is digital.