Why Bitcoin is Compared to Gold.

[kallosart]

Bitcoin is often compared to gold because it is also limited in supply, requires resources to “mine,” and is not controlled by any government, serving as a digital hedge against inflation.

[Sammye3]

Currently Bitcoin is too valuable. Bitcoin can be compared to gold because of it value.most times people normally call it gold digital,
 but we need to actually know the relationship between this too phrase and why it's compared.
Now the reasons why Bitcoin is compared to gold is as follows
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 financial method.
From creation, Gold is wealth, which is very valuable and have trust on, that is what makes it acceptable.
From 2009 when Bitcoin was launched, it's still as new as it was launched today, because of it value to the society. Although the Price is  volatile, but is preferable. that's why it' only exists disitally, this made people to trust and partner without fear, transactions can be made in an twinkle of an eye, to any place around the world. Gold as well is generally accepted globally.
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.

Both bitcoin and gold complement each other so well, in the aspect of certain specifications and characteristics and should be appreciated equally.  Gold has being in existence before bitcoin came in place, and it has solved real life problems in ancient times being used as payment means and other governmental purposes. Bitcoin solves the problem of portability and ease with transactions, no need for protocols and verifications.

[Abiky]

You can buy fractional reserve through gold pegged tokens such as XAUT. Although it's true buying physical gold would be a pain in the ass.

The main hurdle with physical gold is verifying the gold content and its purity.

With bitcoin you could easily verify on the blockchain, the blockchain explorer will never lie but you can't do such thing easily with gold.

Especially the ones that aren't verified and distributed by reputable company which hopefully carry QR codes to scan and verify.

Blockchain's motto is always about "Don't trust, verify". Tokenized gold allows you to easily verify the issuer's proof of reserves straight from the Blockchain. It's super convenient as you can buy tiny fractions of Gold "without breaking the bank". You can also send/receive Gold quickly and cheaply. No portability issues (carrying bulky bars) or security concerns. The only downside is the inability to use tokenized gold when there's lack of electricity or Internet access. Same as Bitcoin. But if the world goes nuclear and makes heavy use of satellites for Internet access, this shouldn't be much of a problem in the future.

Bitcoin is its own independent asset, with traits that often resemble Gold. "Wall Street", banks, governments, and even retail investors compare Bitcoin to Gold due to its added scarcity. It's also a store of value no one can freeze or confiscate (only if you control the keys/seeds). The dream is for Bitcoin to replace Gold someday. But if it doesn't, Bitcoin can co-exist with Gold for generations. We'll see what happens in the long run.

[UchihaSarada]

Blockchain's motto is always about "Don't trust, verify". Tokenized gold allows you to easily verify the issuer's proof of reserves straight from the Blockchain. It's super convenient as you can buy tiny fractions of Gold "without breaking the bank". You can also send/receive Gold quickly and cheaply. No portability issues (carrying bulky bars) or security concerns. The only downside is the inability to use tokenized gold when there's lack of electricity or Internet access. Same as Bitcoin. But if the world goes nuclear and makes heavy use of satellites for Internet access, this shouldn't be much of a problem in the future.

I understood the convenience of tokenization for any asset from gold, stocks to bitcoin but I also knew well about risk and with me, safety is more important than convenience.

If I want gold, I buy gold physically.
If I want bitcoin, I buy bitcoin on Bitcoin blockchain.

I never buy any tokenized gold or wrapped Bitcoin tokens. Reason is very simple, they are tokens and not actual gold or bitcoin. Tokens are not native currencies of blockchains and with tokens, token holders have double risks from the token itself with depegs, scams to a native blockchain problems.

Definition of tokens.

[Publictalk792]

Blockchain's motto is always about "Don't trust, verify". Tokenized gold allows you to easily verify the issuer's proof of reserves straight from the Blockchain. It's super convenient as you can buy tiny fractions of Gold "without breaking the bank". You can also send/receive Gold quickly and cheaply. No portability issues (carrying bulky bars) or security concerns. The only downside is the inability to use tokenized gold when there's lack of electricity or Internet access. Same as Bitcoin. But if the world goes nuclear and makes heavy use of satellites for Internet access, this shouldn't be much of a problem in the future.

Bitcoin is its own independent asset, with traits that often resemble Gold. "Wall Street", banks, governments, and even retail investors compare Bitcoin to Gold due to its added scarcity. It's also a store of value no one can freeze or confiscate (only if you control the keys/seeds). The dream is for Bitcoin to replace Gold someday. But if it doesn't, Bitcoin can co-exist with Gold for generations. We'll see what happens in the long run.

I love 'Don't trust, verify' aspect, but we need to keep in mind that tokenized gold is not decentralized. You store your gold in vault, and you have to trust company or vault to keep it safe. Bitcoin does not have vault or middleman. It is just pure code.
Also, your comment about internet and satellites is interesting. In nuclear or worst case scenario I think it would be more difficult to move and secure many bars of gold, other than finding an internet connection to move Bitcoin.
Bitcoin does not have to kill gold. They can coexist but Bitcoin is definitely new gold for 21st century. One is big piece of rock, other much of math in your mind. I know which one I'd want in a apocalypse.

[Minor Miner]

Bitcoin is compared to gold because they are both considered finite resources. This of course assumes that we will never mine asteroids of gold and also that the block reward will never be altered to continue to let new coins be created after the cap is reached.

Never say never. But I am more inclined to think about space mining than changing the rewards

More than 5,000 year have passed since humankind discovered gold, yet we still have not been able to mine all the gold on Earth. So let's not talk about mining gold in outer space, it sound like something out of a science fiction movie. 

Furthermore, the value of an asset depend not only on supply but also on demand. The demand for gold is enormous because it is used in almost every field, not just for speculation. Therefore, an increase in supply will only lead to a further sharp increase in market capitalization and demand for gold. This will not necessarily cause the price of gold to collapse as we think.

[SilverCryptoBullet]

More than 5,000 year have passed since humankind discovered gold, yet we still have not been able to mine all the gold on Earth. So let's not talk about mining gold in outer space, it sound like something out of a science fiction movie. 

Furthermore, the value of an asset depend not only on supply but also on demand. The demand for gold is enormous because it is used in almost every field, not just for speculation. Therefore, an increase in supply will only lead to a further sharp increase in market capitalization and demand for gold. This will not necessarily cause the price of gold to collapse as we think.

We all are not be able to live till the space technology is good enough to help human occupying other planets or asteroids in order to mine gold there. It's not impossible to get gold outer the Earth planet but it is for very far future. For now and in the near future, it's acceptable to consider that total gold supply is limited on this planet but how to mine all of gold on this planet is very challenging and surely takes a very long time. Again it seems like we won't be alive till a day all gold on this planet is mined by human.

Bitcoin has a clear supply schedule and we all know that when all 21M bitcoins in total supply will be mined by Bitcoin miners. It's different than gold with unknown day of all gold mined by gold miners.

[YOSHIE]

Why Bitcoin is Compared to Gold.

Actually, Bitcoin and Gold cannot be compared, one is not real and the other is physically real.
However, many people have a different view of Bitcoin and Gold and both are seen as having characteristics in terms of store of value, hedging, All of this is seen from the side of unstable fiat currencies, both of which can overcome inflation.

Another reason, perhaps Bitcoin and Gold can be viewed from the perspective of scarcity or limited supply, for example Bitcoin only has a maximum of 21 million rivets while we know the amount of gold may be limited on this planet Earth.
I think it is for several reasons that many people compare gold with Bitcoin, of course there are also other factors.

[knuckey]

Gold and Bitcoin actually share several similar concepts, though they remain distinct. Some even consider Bitcoin to be digital gold. While Bitcoin doesn't have a physical form like gold, its trustworthiness is just as strong as gold's. Some people also invest in Bitcoin as they would in gold. Bitcoin is widely used, and some countries even consider it a substitute for money as a means of transaction. However, gold is currently only used for investment.

[Muba20]

I think bitcoin and gold are equated because both of these assets represent a certain kind of equivalent or standard. The difference is that bitcoin is a digital product, while gold is a physical, tangible one. Both gold and bitcoin create a sense of financial strength and stability that people are looking for. They are completely different in nature, but the purpose people assign to them is similar, which is why they are compared.

Gold and Bitcoin are considered similar in some aspects, in reality there are more differences. What we generally understand as similarities is that both can be considered stores of value. And both do not have a central controller. When there is a possibility of war or inflation, people increase their investment in assets like gold and Bitcoin. But when we look at the differences between Bitcoin and gold, several things will come to light. While gold have existence, Bitcoin does not have. Its existence can only be seen in Bitcoin wallets. Gold cannot be transferred, but Bitcoin can be transferred from one country to another in an instant. Although the volatility of gold is not very high, Bitcoin is a much more volatile currency. Generally, in unstable situations, people now prioritize the use of digital gold as bitcoin.

[riscohen4]

Is Bitcoin really compared to gold?? I don’t think so tbh. they’re both solid and relevant in their own ways, none is gonna outshine the other like that.
Gold has literally been here for centuries, and it has always been one of those trusted ways people store value. so I don’t even think there is ever gonna be a day Bitcoin will just come and replace it fully or outshines it like that.
In my opinion they will just keep doing their thing side by side. both serving their purpose, both holding value in their own way. no need to over compare them like one has to win or something.

[pawanjain]

Currently Bitcoin is too valuable. Bitcoin can be compared to gold because of it value.most times people normally call it gold digital,
 but we need to actually know the relationship between this too phrase and why it's compared.
Now the reasons why Bitcoin is compared to gold is as follows
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 financial method.
From creation, Gold is wealth, which is very valuable and have trust on, that is what makes it acceptable.
From 2009 when Bitcoin was launched, it's still as new as it was launched today, because of it value to the society. Although the Price is  volatile, but is preferable. that's why it' only exists disitally, this made people to trust and partner without fear, transactions can be made in an twinkle of an eye, to any place around the world. Gold as well is generally accepted globally.
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.

Bitcoin is often compared to Gold not because it's valuable but because it too has a limited supply just like Gold.
This is why people refer bitcoin as digital Gold. You say that Gold is not controlled by Government but in fact it is.
Gold is completely regulated by the governments as it goes through a mining process and requires hall mark issued by the government.
Bitcoin is better in this case since it is not directly regulated by the government and we still have ways to go pseudonymous using bitcoin.

[Woodie]

I thought that the best way to compare Bitcoin to gold is breaking it down like a 5year old (ELI5).

Both Bitcoin and Gold(Xau) can be mined...

Both of these assets are high value assets..

Both can be used as a store of value..

Both are not technically controlled by a central government..


Etc etc..

[Danica22]

Currently Bitcoin is too valuable. Bitcoin can be compared to gold because of it value.most times people normally call it gold digital,
 but we need to actually know the relationship between this too phrase and why it's compared.
Now the reasons why Bitcoin is compared to gold is as follows
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 financial method.
From creation, Gold is wealth, which is very valuable and have trust on, that is what makes it acceptable.
From 2009 when Bitcoin was launched, it's still as new as it was launched today, because of it value to the society. Although the Price is  volatile, but is preferable. that's why it' only exists disitally, this made people to trust and partner without fear, transactions can be made in an twinkle of an eye, to any place around the world. Gold as well is generally accepted globally.
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.

Bitcoin is often compared to Gold not because it's valuable but because it too has a limited supply just like Gold.
This is why people refer bitcoin as digital Gold. You say that Gold is not controlled by Government but in fact it is.
Gold is completely regulated by the governments as it goes through a mining process and requires hall mark issued by the government.
Bitcoin is better in this case since it is not directly regulated by the government and we still have ways to go pseudonymous using bitcoin.

Bitcoin and gold are not the only assets with limited supply, and creating a limited supply coin would not be too difficult.
Bitcoin is often compared to gold because they share many similarities such as scarcity and decentralization...

Gold remain a decentralized asset because no single national government can control the supply of gold. It is distributed globally, and every country has the right to exploit it. No government has the right to prohibit another government from mining gold within its territory. However, because it is a tangible asset, its decentralization is somewhat limited.

[Blaq_e12]

 Bitcoin is often compared to gold because they share several key characteristics that make both unique stores of value, especially in contrast to traditional fiat currencies (like the US dollar or euro).
Not Controlled by Governments or Central Banks
Gold: No single government decides how much gold exists. Its value comes from global consensus, not policy.
Bitcoin: Decentralized. No central bank can print more Bitcoin or manipulate its supply. This makes it attractive when people lose trust in government-issued money (inflation, debasement, etc.).

[Livingleged]

If we are talking about this comparison, we should make is very clear about what exactly we are comparing with another. Bitcoin cannot be compared with physical gold even though they both store high value as an asset.
But if we are comparing with the digital gold as in the stock the comparison can start.

 Bitcoin could be compared with gold but still gold stands out due to its low volatility in price unlike bitcoin. Gold could be sold for a specific price for a certain period of time without fluctuating but bitcoin isn’t like that.

The advantage i think bitcoin has over Gold is Government regulation. Because the bitcoin isn’t regulated by any government but gold is.

[Byebyebtc]

Yes these are actually right,
Gold and Bitcoin shear characteristics, and this makes them have similarities the way people value them

Nevertheless I think your post could be more simplified than this, and also more space makes it simpler to read, that way it's whey more easier to spot out your point, thank you

[Smack That Ace]

The advantage i think bitcoin has over Gold is Government regulation. Because the bitcoin isn’t regulated by any government but gold is.

Which government can manage gold? Which government can control the supply of gold? Which government can prohibit people from mining and using gold?

Gold is also a decentralized asset because its supply is evenly distributed and spread across the globe.
Our world is a society comprised of many countries, many governments, and everyone is equal. No single country, government, or entity has the capacity to completely control gold on a global scale.

[BitBrainers]

The whole "gold is decentralized" argument is a bit of a stretch and I say this as someone who actually likes gold as an asset. Yes no single government controls all of it globally but try moving a significant amount of physical gold across a border and see how decentralized that feels real quick. Customs, taxes, paperwork, confiscation risk. It is decentralized in theory but centralized the moment you try to actually use it.
Bitcoin you just memorize 12 words and walk across any border in the world with your entire net worth in your head. Nobody can stop that. Nobody can confiscate what they cannot see. That is a level of financial sovereignty gold simply cannot offer no matter how many thousands of years it has been around. The comparison to gold makes sense as a starting point for people new to Bitcoin because gold is the reference point most people already understand for "scarce valuable thing governments cannot just print more of." But Bitcoin is a different beast entirely. Gold is the old world store of value. Bitcoin is what you get when you want gold but designed for the internet age.
Both have a place. Pretending they are basically the same thing undersells what Bitcoin actually is. And nobody is buying $10 million worth of gold on a Tuesday and selling it on a Friday either.

[Danica22]

The whole "gold is decentralized" argument is a bit of a stretch and I say this as someone who actually likes gold as an asset. Yes no single government controls all of it globally but try moving a significant amount of physical gold across a border and see how decentralized that feels real quick. Customs, taxes, paperwork, confiscation risk. It is decentralized in theory but centralized the moment you try to actually use it.
Bitcoin you just memorize 12 words and walk across any border in the world with your entire net worth in your head. Nobody can stop that. Nobody can confiscate what they cannot see. That is a level of financial sovereignty gold simply cannot offer no matter how many thousands of years it has been around. The comparison to gold makes sense as a starting point for people new to Bitcoin because gold is the reference point most people already understand for "scarce valuable thing governments cannot just print more of." But Bitcoin is a different beast entirely. Gold is the old world store of value. Bitcoin is what you get when you want gold but designed for the internet age.
Both have a place. Pretending they are basically the same thing undersells what Bitcoin actually is. And nobody is buying $10 million worth of gold on a Tuesday and selling it on a Friday either.

If you think the argument that gold is decentralized is a bit of a stretch, then comparing gold to Bitcoin in the first place is already somewhat forced and biased

Comparing a digital asset to a tangible asset is inherently an unfair comparison. You can not expect a physical asset, something you can touch and see, to achieve the same level of decentralization as a virtual asset

I bet that gold has been, and will continue to be, the top choice whenever people need a store of value and a safe haven for decades to come. It will never become obsolete no matter how Bitcoin develop. Meanwhile, bitcoin would be a great alternative. It will not be able to completely replace the role of gold in our world.