Why Bitcoin is Compared to Gold.

[DiMarxist]

Snip

Gold market cap is much more then Bitcoin. Moreover gold is also accepted in every country because its a precious metal. While if we talk about Bitcoin then at the moment there is no comparison for Bitcoin with gold in terms of market cap. As a Bitcoin enthusiastic, we must take interest in Bitcoin and at the same time we must not underestimate other assets like gold. Bitcoin has shown enormous growth since its launch and if this growth continuous with same pace then if future we might see Bitcoin competing with gold but at the moment gold is ahead of Bitcoin.

You are right as Bitcoin enthusiast we should not try and compare Bitcoin with other assets like Gold, because of you ask me every asset is unique in its way. When investing I am of the opinion of diversifying your investment of which assets like Gold can't be replaced by any other asset. So in as much as we keep building our Bitcoin portfolio it's good to value other assets because they wisdom demands that you spread your investment across several assets.

[BitBrainers]

Gold's current market capitalization is $32 trillion, not $20 trillion. But did you know that gold ETF only account for about $600 billion, or about 2% of gold market cap? That number is too modest and small. Therefore, I suspect that the shift of capital from gold ETF to bitcoin ETF will make a difference for bitcoin

For Bitcoin to surpass gold and become the leading store of value, it need to be recognized and invested in by central bank and people worldwide. Relying solely on cash flow from ETFs is not enough to help bitcoin make a breakthrough in competing with gold.

The $32 trillion correction is fair. But the ETF point cuts both ways. Gold ETFs have existed for over 20 years and institutional penetration is still only 2% of total market cap. Spot Bitcoin ETFs launched in January 2024, just over two years ago, and have already pulled in over $37 billion in net inflows. That velocity of adoption is something gold has never seen at this stage.

The market cap gap is real and nobody serious is denying it. But market cap is a snapshot. Adoption velocity is a trajectory. And right now one of these assets is moving significantly faster than the other.

On the central bank point, you are correct that Bitcoin needs sovereign recognition to truly compete with gold. But that process has already started. El Salvador moved first. The US Strategic Reserve changes the entire framing. When governments start treating Bitcoin as a reserve asset, the comparison stops being theoretical.

[Danica22]

On the central bank point, you are correct that Bitcoin needs sovereign recognition to truly compete with gold. But that process has already started. El Salvador moved first. The US Strategic Reserve changes the entire framing. When governments start treating Bitcoin as a reserve asset, the comparison stops being theoretical.

As a Bitcoin investor, I also really want to believe that the process has already begun. But in reality, I think it has not even started yet.

El Salvador was a pioneer in this initiative, but unfortunately, it is too small and has had little impact or ripple effect. Meanwhile, the US strategic bitcoin reserve is merely an executive order, it can be revoked at any time. Furthermore, they are only using the confiscated bitcoin and have no intention of spending a single cent to buy and seriously hoard bitcoin.
Perhaps it will take more time for that to begin.

[BitBrainers]

As a Bitcoin investor, I also really want to believe that the process has already begun. But in reality, I think it has not even started yet.

El Salvador was a pioneer in this initiative, but unfortunately, it is too small and has had little impact or ripple effect. Meanwhile, the US strategic bitcoin reserve is merely an executive order, it can be revoked at any time. Furthermore, they are only using the confiscated bitcoin and have no intention of spending a single cent to buy and seriously hoard bitcoin.
Perhaps it will take more time for that to begin.

The process has started, just not in the way most people expected. It was never going to be a government announcement followed by mass adoption overnight. It moves in layers. Confiscated reserves today. Active buying tomorrow. Sovereign competition after that. The signs are there, BlackRock, SpaceX, MicroStrategy, the US reserve framing. The problem is most people are waiting for institutions to tell them it is safe. That is exactly backwards. By the time institutions signal, the price already moved. I bought at all time high too. The question was never timing. It was conviction.

[colinistheman]

Gold market cap is much more then Bitcoin. Moreover gold is also accepted in every country because its a precious metal. While if we talk about Bitcoin then at the moment there is no comparison for Bitcoin with gold in terms of market cap. As a Bitcoin enthusiastic, we must take interest in Bitcoin and at the same time we must not underestimate other assets like gold. Bitcoin has shown enormous growth since its launch and if this growth continuous with same pace then if future we might see Bitcoin competing with gold but at the moment gold is ahead of Bitcoin.

You are right as Bitcoin enthusiast we should not try and compare Bitcoin with other assets like Gold, because of you ask me every asset is unique in its way. When investing I am of the opinion of diversifying your investment of which assets like Gold can't be replaced by any other asset. So in as much as we keep building our Bitcoin portfolio it's good to value other assets because they wisdom demands that you spread your investment across several assets.

We can compare Bitcoin with other asset to choose and determine which investment is best suited for us. However, many people are making comparison and assessments that are not objective and are somewhat biased. That offers no benefit, and Bitcoin will not get any better just from flattery or biased comparisons. It can even cause unnecessary controversy

Every asset has its advantage and disadvantage. We can compare them to better understand the intended use and level of risk of each type. Do not compare them just to prove which one is better.

[Webetcoins]

Bitcoin itself has all the qualities of gold . Bitcoin is a store of value, and appreciate in value over time, and an hedge against inflation which gold does also, but the quality of bitcoin goes beyond that of gold even though they have some similarities and this is what gives bitcoin more advantage over gold. Bitcoin is an asset as well as digital currency. In times of making profit, Bitcoin has generated more profit far more than gold. Bitcoin is also used for digital transactions, you can use bitcoin to buy goods online if you want. More also, Bitcoin is a deflationary asset which makes it to rapidly increase in value as demand increases.

In the most basic sense, gold could be ruined, you could drop gold, or crush it or whatever you want to do, melt it with other things and devalue it, not that anyone actually ever does this, but that's the point, we are talking about something that is very physical, meaning anything could happen if we wanted to make it happen.

But bitcoin is bitcoin, it's digital, it's always there, it will never be corrupted, never be less valued, it will always be bitcoin and will not change at all.

[HustleZ]

{~}

Bitcoin is compared to gold in only one aspect and that is in its scarcity, its fixed supply which makes it as valuable as gold. What makes it more valuable is important and new brought by BTC, its the decentralisation, the ability to carry it anywhere and everywhere you want if you just remember or have a seed phrase and many more pros with it. It’s compared to gold in an aspect in which gold has been dominant from thousands of years and now bitcoin is here to deliver that same thing better because gold can be found more but bitcoin cant be mined more than its fixed supply of 21M. One thing to understand is Bitcoin never was created to be the new “gold” but it was created to be the new “money”.

[Mr_Brilliant$]

Gold market cap is much more then Bitcoin. Moreover gold is also accepted in every country because its a precious metal. While if we talk about Bitcoin then at the moment there is no comparison for Bitcoin with gold in terms of market cap. As a Bitcoin enthusiastic, we must take interest in Bitcoin and at the same time we must not underestimate other assets like gold. Bitcoin has shown enormous growth since its launch and if this growth continuous with same pace then if future we might see Bitcoin competing with gold but at the moment gold is ahead of Bitcoin.

You are right as Bitcoin enthusiast we should not try and compare Bitcoin with other assets like Gold, because of you ask me every asset is unique in its way. When investing I am of the opinion of diversifying your investment of which assets like Gold can't be replaced by any other asset. So in as much as we keep building our Bitcoin portfolio it's good to value other assets because they wisdom demands that you spread your investment across several assets.

We can compare Bitcoin with other asset to choose and determine which investment is best suited for us. However, many people are making comparison and assessments that are not objective and are somewhat biased. That offers no benefit, and Bitcoin will not get any better just from flattery or biased comparisons. It can even cause unnecessary controversy

Every asset has its advantage and disadvantage. We can compare them to better understand the intended use and level of risk of each type. Do not compare them just to prove which one is better.

There’s a whole lot of wisdom in what you said tbh…

Firstly, talking about “best suited for us”…  a lot of people don’t really get that. Not every investment fits everybody..  Things like where you’re based, your financial situation, your risk level, even your mindset… all of that plays a very big role. But when people start comparing Bitcoin with other assets, most times it is biased..

Secondly… let me even say this loud: YOUR COMPARISON WON’T MAKE BITCOIN MORE VALUABLE OR SUDDENLY THE BEST ASSET OUT THERE..

At the end of the day, no solid asset is “better” than another in a general sense..  It all comes down to the individual and what is driving their decision..  Different tools for different people, simple as that..

[Abiky]

Gold's current market capitalization is $32 trillion, not $20 trillion. But did you know that gold ETF only account for about $600 billion, or about 2% of gold market cap?
That number is too modest and small. Therefore, I suspect that the shift of capital from gold ETF to bitcoin ETF will make a difference for bitcoin

For Bitcoin to surpass gold and become the leading store of value, it need to be recognized and invested in by central bank and people worldwide. Relying solely on cash flow from ETFs is not enough to help bitcoin make a breakthrough in competing with gold.

Capital WILL shift from Gold to Bitcoin. It should only be a matter of time before this happens. Why do you think "Wall Street" is so interested in Bitcoin? Because they've noticed its hidden potential. Bitcoin is the next big thing. Gold is just a thing of the past. It's history. We should expect it to lose investor appeal, as it remains solely used for jewelry. Tokenized Gold, however, might keep Gold in the spotlight for long.

Gold's current market cap is around $32T, so it's going to take quite a long time before BTC gets there. IF it ever does, because Gold might keep rising in price for the foreseeable future (which means a higher market cap over time). Most people prefer to hold both BTC and Gold for complete peace of mind. Ultimately, the decision is yours. Just my two sats.

[Son Of Blockchain (SOB)]

We can compare Bitcoin with other asset to choose and determine which investment is best suited for us. However, many people are making comparison and assessments that are not objective and are somewhat biased. That offers no benefit, and Bitcoin will not get any better just from flattery or biased comparisons. It can even cause unnecessary controversy

Every asset has its advantage and disadvantage. We can compare them to better understand the intended use and level of risk of each type. Do not compare them just to prove which one is better.

There’s a whole lot of wisdom in what you said tbh…

Firstly, talking about “best suited for us”…  a lot of people don’t really get that. Not every investment fits everybody..  Things like where you’re based, your financial situation, your risk level, even your mindset… all of that plays a very big role. But when people start comparing Bitcoin with other assets, most times it is biased..

Secondly… let me even say this loud: YOUR COMPARISON WON’T MAKE BITCOIN MORE VALUABLE OR SUDDENLY THE BEST ASSET OUT THERE..

At the end of the day, no solid asset is “better” than another in a general sense..  It all comes down to the individual and what is driving their decision..  Different tools for different people, simple as that..

Both offers store of value but there would always be comparism because different people got their preference and interest to why they consider it the best. Men like Peter Schiff would always see reasons to let people keep believing in gold and ditch Bitcoin for it so he'll sell his business, that's his interest but people who believe in Bitcoin's potential would always counter that.
 What i love about both assets is that they don't even need people to advertise them to thrive, Gold is natural and would forever be precious and valuable, Bitcoin as a digital asset has strong potential, scarce which makes it more attracting to people in the long run but I prefer Bitcoin due to decentralization and security.

[ndutndut]

{~}

Bitcoin is compared to gold in only one aspect and that is in its scarcity, its fixed supply which makes it as valuable as gold. What makes it more valuable is important and new brought by BTC, its the decentralisation, the ability to carry it anywhere and everywhere you want if you just remember or have a seed phrase and many more pros with it. It’s compared to gold in an aspect in which gold has been dominant from thousands of years and now bitcoin is here to deliver that same thing better because gold can be found more but bitcoin cant be mined more than its fixed supply of 21M. One thing to understand is Bitcoin never was created to be the new “gold” but it was created to be the new “money”.

Comparing these two assets won't necessarily reveal much difference, even though they both currently serve as stores of value. However as you stated, Bitcoin wasn't designed to be the new gold or digital gold, but rather a new, better form of money in today's digital age.

While they can't be compared due to their many differences, the two can coexist. Many individuals, companies and even countries today view Bitcoin as an asset with its primary function remaining as money, superior because it's difficult to censor, acts as a store of value and has a clear future or fundamentals.

[savetheFORUM]

Bitcoin is compared to gold in only one aspect and that is in its scarcity, its fixed supply which makes it as valuable as gold. What makes it more valuable is important and new brought by BTC, its the decentralisation, the ability to carry it anywhere and everywhere you want if you just remember or have a seed phrase and many more pros with it. It’s compared to gold in an aspect in which gold has been dominant from thousands of years and now bitcoin is here to deliver that same thing better because gold can be found more but bitcoin cant be mined more than its fixed supply of 21M. One thing to understand is Bitcoin never was created to be the new “gold” but it was created to be the new “money”.

But Gold doesn't have a fixed supply, so Bitcoin shouldn't be compared to Gold in that aspect. The only aspect that both assets have in common is the fact that they both can serve as store of value, but both have their pros and cons and people choose one of them based on what they want. Gold has a higher supply, because more Gold can be discovered from anywhere in the world, we don't even know how much more Gold is there to be discovered and added into the supply, which is why it has a more stable value because the value gets more volatile if the supply is limited and demand is high, while Gold also has a high demand, it has a large supply as well.

On the other hand, Bitcoin has limited supply, hence it has a more volatile value, which makes it a bit of a more risky investment or store of value, but with risks come better rewards as we know, so those who keep their money in Bitcoin and not Gold will have the opportunity to get better returns in a shorter period because Bitcoin's value can go up more quickly than Gold, but Gold is preferred by those who want a more stable store of value for their wealth.

[Little _damsel]

I think you're mixing the concept. The main reason why people compare bitcoin and gold is because they're both valuable assets, that's the main reason people compare them.

Other reason could be that; both bitcoin and
gold are outside direct government creation.....
They're both considered as store of value by many investors.........
They're both scarce, gold is difficult to mine physically, while bitcoin is programmatically limited to 21 million coins mathematically.

There are differences between them tho, like;

gold is physically used while bitcoin is purely digital.......
Gold has thousands of years of trust behind it, bitcoin is still kinda new compared to gold........
Bitcoin is far more volatile. Gold move in price too, but compared to bitcoin it moves slowly.

So when you hear people comparing gold and bitcoin they usually mean that bitcoin is becoming a modern digital asset people use to store value, similar to how gold has been used over time.