Bitcoin is digital currency or digital gold?

[Zanab247]

I don't think Satoshi labeled Bitcoin as digital gold the idea of "digital gold"was formulated by people who believed that it could be compared to gold since it can serve as a store of value and also a long term asset.

Before I joined this forum I have study books that related to BTC and other cryptocurrencies but I have not seen where the founder of BTC said BTC is a digital gold, because BTC is different from gold and it will never turn to gold in the nearest future. We all know how the founder of BTC created BTC without the support of the government which is the reason government don't have the power to control the price of BTC till now and it has spread around the world to make people admire BTC than gold these days.

Majority of Bitcoiners embrace BTC because is the store of value, because you can decide to buy BTC and hodl for long years and it will make you to double your profit when long bull run occur in the market.

[UchihaSarada]

Before I joined this forum I have study books that related to BTC and other cryptocurrencies but I have not seen where the founder of BTC said BTC is a digital gold

Bitcoin is Bitcoin, and gold is gold, they are different assets. The Bitcoin founder, Satoshi Nakamoto did not say anything that Bitcoin is Digital Gold, which is a term used by Bitcoin community.

In the Bitcoin white paper, Satoshi wrote about Bitcoin as A Peer-to-Peer Electronic Cash System.

because BTC is different from gold and it will never turn to gold in the nearest future.

They are different compares to each other but anyone want to know about comparison between Bitcoin and gold, this book can be helpful.
The bullish case for Bitcoin.

[BitBrainers]

we do not need to be too rigid about Bitcoin's original concept, since we ourselves rarely use it for its original purpose.

The original purpose was freedom. A currency outside state control that anyone could use without permission. Digital gold and medium of exchange are both downstream of that. When adoption reaches the point where people spend it freely, hold it freely, and earn it freely, the gold vs currency debate resolves itself. The circulation you described is what a free society looks like.

[puloweh555]

Is Bitcoin a store of value or medium of exchange? Or can it be both? I always thought Bitcoin made more sense as digital gold since it has all the benefits of gold yet none of the defects of gold.
The volatility of Bitcoin makes me feel like it doesn't make sense as a form of digital currency. I'm open to hear why Bitcoin makes more sense as a digital form of currency.

I think. It could be both a medium of exchange and a store of value. Bitcoin allows instant transactions, has very low fees and its adoption is growing rapidly. Even countries like El Salvador have legalized Bitcoin as a means of transaction, although it's currently ineffective. Furthermore, in countries with high inflation many people use BTC for cross border value transfers because it's considered superior to local fiat currencies. Volatility is true, but over time if mass adoption continues to increase volatility will decrease making Bitcoin suitable as a digital currency. Furthermore, if we look at the history of gold or other fiat currencies, they were also initially volatile.

In terms of store of value Bitcoin even has many advantages over gold. For example, Bitcoin has a limited supply because its supply is programmed, so it cannot be changed arbitrarily. A limited supply makes Bitcoin scarce and Bitcoin is more transparent and difficult to counterfeit.

[LFC_Bitcoin]

It’s both but Bitcoin started as a digital currency, most people now treat it more like digital gold. Many people hold it hoping it keeps value over time, similar to gold. So technically it’s both but right now it acts more like digital gold than actual money.

[avp2306]

It’s both but Bitcoin started as a digital currency, most people now treat it more like digital gold. Many people hold it hoping it keeps value over time, similar to gold. So technically it’s both but right now it acts more like digital gold than actual money.

Exactly, then I also agree with your post here. Because initially Bitcoin is been design as digital money to be used by people for their online transaction. Situation change over time and people learn that its possible to earn on Bitcoin by holding it. So with that people learn and see this asset as store value.

At current situation happening especially on how people looks at it Bitcoin seems to be a digital gold for investors than making it as their digital cash.

[The Cryptovator]

You should know the history of Bitcoin's creation and what the goal of Bitcoin was. Then you may discover Bitcoin initially has created a digital currency in the form of cryptocurrency. The name is cryptocurrency by nature, so it's digital currency for me. You might consider it digital gold from a different angle, but the reality is it will always exist as a cryptocurrency. Due to its mining nature, sometimes people want to compare it with gold.

To me, I don't want to compare Bitcoin with gold, because both are different by nature. One exists only virtually, and another has a physical presence. Even though both have been mining, they are totally different ways: Bitcoin operates with a fixed technology where you can mine gold either less or more. Bitcoin also has a store of value; people consider Bitcoin an investment asset. But Bitcoin has always been serving its purposes.

[Emitdama]

Before I joined this forum I have study books that related to BTC and other cryptocurrencies but I have not seen where the founder of BTC said BTC is a digital gold

Bitcoin is Bitcoin, and gold is gold, they are different assets. The Bitcoin founder, Satoshi Nakamoto did not say anything that Bitcoin is Digital Gold, which is a term used by Bitcoin community.

In the Bitcoin white paper, Satoshi wrote about Bitcoin as A Peer-to-Peer Electronic Cash System.

As in "currency", it's a currency and there is a reason why we call it a "crypto" currency, so it is not gold. People do not realize the difference unfortunately and they think that it could be considered sort of like a digital gold but it is not. Gold is an item, you can wear it as a chain, you can wear as bracelet, or use it to make CPU or whatever else you want to use it as and it is not just an asset to buy for investment. Fiat on the other hand, a currency, is only used as currency, you are not going to use money for any other reason.

[TheUltraElite]

Gold can also be a currency and since bitcoin is also a currency it can be also compared to gold.

As source of value, gold and bitcoin both can be sources of value. The choice is on the person owning them. The traditional asset gold has been used for a long time and is trusted by almost everyone. Bitcoin is a niche area which is being used by certain number of people and have been increasing over time. It is also a good store of value if you see the price rise over the years.

We use bitcoin more commonly than spending gold. So it depends on choice/feasibility and so on.

[SeriouslyGiveaway]

Gold can also be a currency and since bitcoin is also a currency it can be also compared to gold.

As source of value, gold and bitcoin both can be sources of value. The choice is on the person owning them. The traditional asset gold has been used for a long time and is trusted by almost everyone. Bitcoin is a niche area which is being used by certain number of people and have been increasing over time. It is also a good store of value if you see the price rise over the years.

We use bitcoin more commonly than spending gold. So it depends on choice/feasibility and so on.

Bitcoin and gold can be both store of value for investment, and currency so they can be compared with each other.

However there are people who disagree with such comparison between gold and Bitcoin because they think Bitcoin is digital, while gold is physical, which I agree with them. Of course, gold can be trade online but with tokenized or middle companies and if we are strict, such trades are not actually with gold. Similarly to people who own or trade Wrapped Bitcoin tokens, they don't actually own bitcoin or trade bitcoin.

[BitBrainers]

To me, I don't want to compare Bitcoin with gold, because both are different by nature.

The distinction matters less over time. Gold became a store of value because it was scarce, durable, and difficult to confiscate. Bitcoin has all three properties in a superior form. The white paper called it electronic cash, but markets decide function, not whitepapers. The dollar was originally backed by gold. Gold was originally used as currency. Assets evolve into whatever role they fill best at scale. Right now Bitcoin fills the store of value role better than any alternative. That is not a betrayal of Satoshi's vision. It is the market expressing what it needs most.

[Renampun]

Many people do indeed see Bitcoin as digital gold because, as you said, it has properties similar to gold, but Bitcoin is very different when compared to digital gold, while digital gold is centrally controlled, Bitcoin is not controlled by anyone. although there are parts of Bitcoin that make it more similar to digital gold, that doesn't necessarily make it more suitable as "digital gold". but even so, that doesn't stop you from considering it as digital gold because in the end, everyone has their own perspective and it is also up to you because you are the one who has it.

[maxreish]

Though most of the investors look at it as a commodity, more likely bitcoin treat it as a digital gold. Most of us hoping it will go up when it comes to the price before we sell it (like gold) and like gold, we cherish it. We store it.
However, as the technology matures and develops, the currency aspect might become more practical.

[Hamza2424]

Is Bitcoin a store of value or medium of exchange? Or can it be both? I always thought Bitcoin made more sense as digital gold since it has all the benefits of gold yet none of the defects of gold.
The volatility of Bitcoin makes me feel like it doesn't make sense as a form of digital currency. I'm open to hear why Bitcoin makes more sense as a digital form of currency.

Yep, you are right bro because volatility can be demanding for those who want to risk their funds because volatility can increase your amount and make you some good profit, but it can also reduce your amount. Therefore, not everyone can tolerate it. That's why bro, if you are a vendor and taking payments in Bitcoin, you have to make sure you are ready to bear losses.

But if you just want to use this payment option to increase your customers and you don't care about the small losses that price valuation could cause you, then you are playing a good game here bro because the losses are temporary in Bitcoin, they will eventually recover. But if you find a good customer, then that's a big win for your business. So this was the basic idea you must have in mind if you want to use BTC for payments.

[TastyChillySauce00]

We use bitcoin more commonly than spending gold. So it depends on choice/feasibility and so on.

Gold could be a really good currency if only gold is easy to move, carrying blocks of gold is risky and isn't very convenient thus it gets replaced by something else although the nature of gold which is going against inflation is great.
Bitcoin solved that problem while having the same characteristic of being deflationary, therefore it's called digital gold. Honestly the name digital gold is good for bitcoin, gold is the only thing closest to bitcoin in my opinion.

[DanWalker]

Gold could be a really good currency if only gold is easy to move, carrying blocks of gold is risky and isn't very convenient thus it gets replaced by something else although the nature of gold which is going against inflation is great.
Bitcoin solved that problem while having the same characteristic of being deflationary, therefore it's called digital gold. Honestly the name digital gold is good for bitcoin, gold is the only thing closest to bitcoin in my opinion.

I think, bitcoin is bitcoin. Labeling it as digital gold makes bitcoin look like a copy of gold and detracts from the true nature of bitcoin.
Gold is a natural asset found by humans, while Bitcoin was created to solve the problems of the traditional banking system.

Satoshi did not create bitcoin to become the new gold or digital gold. He created bitcoin to be a peer to peer currency system.

[BitBrainers]

Satoshi did not create bitcoin to become the new gold or digital gold. He created bitcoin to be a peer to peer currency system.

Satoshi also could not predict that a deflationary asset with fixed supply would become more valuable as a store of value than as daily currency. The whitepaper describes the mechanism, not the destiny. Gold was currency before it became a reserve asset. Bitcoin may follow the same path in reverse, store of value first, then medium of exchange once volatility compresses over decades. Intentions do not determine outcomes at scale. Markets do.

[Iranus]

Though most of the investors look at it as a commodity, more likely bitcoin treat it as a digital gold. Most of us hoping it will go up when it comes to the price before we sell it (like gold) and like gold, we cherish it. We store it.
However, as the technology matures and develops, the currency aspect might become more practical.

That could happen, but honestly, I doubt it. The reason is that the barriers preventing the use of bitcoin as a currency today are government and ourselves.

The government does not like the idea of ​​a currency that is not under its control becoming popular. Meanwhile, most investors do not want to waste their bitcoin. Everyone just wants to accumulate and hold it long term with the expectation of making a profit.

Everyone is happy with the current situation and nobody wants to change it.

[tbct_mt2]

That could happen, but honestly, I doubt it. The reason is that the barriers preventing the use of bitcoin as a currency today are government and ourselves.

The government does not like the idea of ​​a currency that is not under its control becoming popular. Meanwhile, most investors do not want to waste their bitcoin. Everyone just wants to accumulate and hold it long term with the expectation of making a profit.

Everyone is happy with the current situation and nobody wants to change it.

Years ago, in early years of Bitcoin existence, governments did not have regulations like now and will have more and stricter regulations in the future, so in the past, the main barriers is ourselves. In the present, main challenges are both, ourselves and governments, while people can change themselves and accept Bitcoin, they will have to face with and surpass barriers made by governments.

Sometimes, some people just want to leave in their comfortable zones and don't like to do things they feel risky especially if governments set up some barriers including legal ones. Governments will never automatically accept Bitcoin, and give freedom to citizens but in long term, I believe that with Bitcoin snow ball effects, its adoption growth will become big enough so almost no governments globally have regulations to ban Bitcoin.

[Peanutswar]

Actually, recently seen that they launch a digital gold which is the XAU previously, so now with this still just the convenience it brings is you can now buy and sell instantly your gold without going to a physical shop to sell your hold golds. Well, these stills rely with the current market of gold. Still on the supply and demand but still less volatility and still took over weeks and months before there is a change with the market price. Now if you are into market volatility I'd rather go with the Bitcoin. But having both is better decision.