Bitcoin vs Gold — Which Might Be More Profitable?

[kariona]

Looking at Bitcoin vs gold for profit, both have a very different profile.

Bitcoin: high volatility, fixed supply of 21M, easy to move and store digitally, no physical storage cost, but sharp drops are common. Profit can be large if entry timing is good, but losses can be just as fast.

Gold: much more stable, long history as a store of value, physical and tangible, but gains tend to be slower, and you have storage / insurance costs if you hold physical gold.

Profit really depends on entry timing, holding period, and how much risk you can handle. Bitcoin offers more upside with more risk. Gold offers more stability with slower growth.

What is your view — do you lean toward Bitcoin's upside or gold's stability for the next few years?

[Vatiiko]

Gold and silver baby 
Also I support Bitcoin of course 

[Ambatman]

Generic argument
Gold is also volatile
Yeah less when compared to Bitcoin but it sure is.
Most times an higher risk means an higher reward.

Profit can be large if entry timing is good, but losses can be just as fast.

It's usually unrealised losses and profit
If the person had not sold in a loss they wouldnt have been in one
So far so good bitcoin has been known to create and beat ATH.

[Hamza2424]

What is your view — do you lean toward Bitcoin's upside or gold's stability for the next few years?

BTC is a risky play, and that's a fact, but it's also a play you don't want to miss. So you can't risk avoiding BTC, but investing everything in Bitcoin is also risky. That's why diversification is important in this case. If you have a lot of money, you should diversify into both. If you can't invest in both but have other funds, then that's fine, but don't go all in on just one.

Gold may be more stable than BTC, but recently, it has been moving very sharply too haha. I have been observing its price action for some time now, so I can tell. But yep, in the long run, it wins.

[kariona]

Good point on diversification, Hamza — that part really stuck with me. I was kind of framing it as one vs the other, but you're right that going all-in on either feels like a lot of pressure on one bet. Spreading it out makes the swings a bit easier to live with.

I also hadn't thought much about gold moving sharply lately. I still think of it as the steadier one, but if it's been jumping around too, then that gap between the two is maybe smaller than I assumed. Curious to see if that keeps up or if it settles back into its usual slower pace.

[aoluain]

BTC:

Risky in terms of you needing to liquidate it during a Bear market, otherwise over
the long term its a safe bet IMO. The longer you leave it the chances are if you have to
liquidate in a Bear market you are still in profit.

GOLD:

Its just steady, its probably worthwhile if you want something purely to be safe from inflation
but in terms of pure profit its not going to compete with BTC
Be mindful that if you are planning to own a large quantity of Gold it might either be PAPER Gold
or giving it to a third party to HODL but as BItcoiners we wouldnt be comfortable with that.

[tabas]

Bitcoin is risky and highly volatile, that's true. But check out what happened to gold today. It's safe to say that even it's been stable for so long, gold bulls also need to recognize how Bitcoin's doing for the past years. Because when if a correction happens to bitcoin, they're already discouraging others with it, but we see how gold's chart today and yet we're not like them discouraging people to invest in it.



I didn't own gold for years but I am satisfied with the profits that I have made with Bitcoin. More than the average return that I'll get if my money's sitting in gold.

[eternalgloom]

What is your view — do you lean toward Bitcoin's upside or gold's stability for the next few years?

Gold is favorite hedging asset of central bank, proven over years to withstand political uncertainty and inflation. And Bitcoin is pure liquidity driven technological asset. As global liquidity increase Bitcoin mooning. But when market is tight, its drawdown is more ruthless than gold or any other asset.

So my view for next few year is clear. Why stick to binary choice either bitcoin or gold?
Gold for wealth preservation, which will keep your capital safe.
Bitcoin for Aggressive Alpha and Growth, which will multiply your capital in right cycle.

[OgNasty]

When you are looking at potential profit, one of the things that probably matters most (in comparable assets or businesses) is market cap.  Gold is still the big dog in the room compared to Bitcoin, so it will take a lot more money to get it to move up at the same % as Bitcoin.  That reason alone gives Bitcoin quite an advantage from their current market positions.  Will Bitcoin surpass Gold?  It is quite possible due to it's ease of ownership and limited coins that can be lost forever... 

[Jewan420]

I would lean towards both assets. Both Bitcoin and gold are volatile assets, but gold is comparatively less volatile.
Gold and Bitcoin have different characteristics and also differ in terms of use. Bitcoin's characteristics include - transactions, inflation resistance, privacy and freedom.
Gold's characteristics include - usable as jewelry, tangible, exchangeable and usable in technology, etc.

I think both assets are valuable and will be able to give us profits in the future. But I think the amount of profit will be higher in Bitcoin. Considering the critical moment, gold also has importance. Although Bitcoin is dependent on the internet, gold is not dependent on anything for exchange. That is why many people still use gold as a safe haven during times of war.

[kariona]

That both-assets angle makes a lot of sense, Jewan — especially the part about them actually being used for different things. I was mostly thinking about price, but your list kind of reframed it for me. Bitcoin for moving value around and staying independent of banks, gold for something you can physically hold and pass on without any tech in between.

The internet point stuck with me too. I take it for granted most of the time, but yeah, if the connection is down or restricted, Bitcoin is kind of stuck, while gold still works face to face. And the war / crisis example is hard to argue with — that is exactly when people reach for something tangible.

Still, I get why you lean toward Bitcoin for the bigger upside. Different tools for different situations, I guess, rather than one winner.

[philipma1957]

there is a song.

Teach Your Children
Crosby, Stills, Nash & Young
Producers
Neil Young, Graham Nash & 2 more
Track 2 on
Déjà Vu
May 1970
1 Viewer
182.7K Views






Teach Your Children Lyrics

[Verse 1]
You, who are on the road
Must have a code that you can live by
And so, become yourself
Because the past, is just a goodbye
Teach, your children well
Your father's hell, did slowly go by
And feed, them on your dreams
The one they pick's the one you'll know by

[Bridge]
Don't you ever ask them why
If they told you you would cry
So just look at them and sigh
And know they love you

[Verse 2]
And you of tender years (Can you hear and do you care?)
Can't know the fears (And can you see?)
That your elders grew by (We must be free)
And so please help (To teach your children)
Them with your youth (What you believe in)
They seek the truth (Make a world)
Before they can die (That we can live in)
Teach, your parents well
Their children's hell, will slowly go by
And feed, them on your dreams
The one they picks, the one you'll know by




see that bolded line

Because the past, is just a goodbye

that is something that has been ignored by every post.

btw we people do this

if we know the future we would simply pick winners, but we don't.


Spacex  hits 500 bucks.
Gold      gold hits 10,000 bucks.
BTC       btc hits  200,000 bucks.

not a single one of us knows what will happen with the three above.

and the past has nothing to do with the future.

[kariona]

Honestly, philipma1957, that is a fair reality check. I have been going back and forth on which one looks stronger, but your point about not actually knowing the future kind of cuts through all of that. We can compare charts and histories all day, and it still does not tell us what happens next.

The examples you gave made that click for me — if anyone really knew where those three would land, the whole conversation would be pretty short. Since nobody does, it feels less like picking a winner and more like deciding what kind of uncertainty you are comfortable living with. Past performance is interesting to look at, but yeah, it is not a promise.

[Queentoshi]

I think both assets are valuable and will be able to give us profits in the future. But I think the amount of profit will be higher in Bitcoin.

The investments that you make the most profit from is the investments that you've been most committed to, for instance you would profit more from Bitcoin if you invested more in Bitcoin and held on to the future just as you would profit from gold if that is what you have invested in and focused on. The reasons why people invest on either of both are for reasons other than profits because making profit from the two of them is possible. Rich people who are investing more in Bitcoin are investing in Bitcoin because it is easier to move around in the case of a crisis than gold bricks as one of the possible reasons having it as a choice, but for poor people who are investing in Bitcoin and they are doing so because it has presented an opportunity for them to invest in Bitcoin even with a small amount of money that they have and are earning.

[kariona]

Interesting take, Queentoshi — the commitment part is something I had not really framed that way. It makes sense though, the asset you actually stick with and pay attention to is the one you are more likely to do well with, just because you are not jumping in and out or second-guessing every dip.

The rich vs poor contrast you drew was also eye-opening. I had mostly been thinking about portability in a crisis as a general plus, not as something that matters differently depending on how much you have. And the small-amount point is real — being able to start with whatever you have changes who can even get in the door, which gold in brick form definitely does not offer in the same way.

[Japinat]

What is your view — do you lean toward Bitcoin's upside or gold's stability for the next few years?

BTC is a risky play, and that's a fact, but it's also a play you don't want to miss. So you can't risk avoiding BTC, but investing everything in Bitcoin is also risky. That's why diversification is important in this case. If you have a lot of money, you should diversify into both. If you can't invest in both but have other funds, then that's fine, but don't go all in on just one.

Bitcoin is more risky, but its also more profitable than gold, so I don't think gold alone should be prioritized. Diversification is the key if you want to gain massive profits. Or you can start with gold or bitcoin first, especially if you only have limited funds, but never stop there. Multiple investments come with multiple profits, so make sure to invest in both.

But just because you are into investments, then financial stability is already secured. Sometimes it could all turned up into losses, that's why you have invest in you personal savings and emergency funds too, in case investments do not work according to plan.

[kariona]

What is your view — do you lean toward Bitcoin's upside or gold's stability for the next few years?

BTC is a risky play, and that's a fact, but it's also a play you don't want to miss. So you can't risk avoiding BTC, but investing everything in Bitcoin is also risky. That's why diversification is important in this case. If you have a lot of money, you should diversify into both. If you can't invest in both but have other funds, then that's fine, but don't go all in on just one.

Bitcoin is more risky, but its also more profitable than gold, so I don't think gold alone should be prioritized. Diversification is the key if you want to gain massive profits. Or you can start with gold or bitcoin first, especially if you only have limited funds, but never stop there. Multiple investments come with multiple profits, so make sure to invest in both.

But just because you are into investments, then financial stability is already secured. Sometimes it could all turned up into losses, that's why you have invest in you personal savings and emergency funds too, in case investments do not work according to plan.

hmm yeah the savings part is what got me tbh. like investing alone doesnt really lock in stability, it can still go sideways. so keeping some cash aside just in case feels like the boring but sensible bit people skip.

also the start with one if funds are tight idea, that tracks. not everyone can split across both from day one. just building up slowly and not feeling forced to rush it.

[BitMaxz]

I am more into Bitcoin, but it would be much better if you had both of them because we do not know which one is much more profitable in the long run.

We already know Bitcoin if you just review the chart history and value in the past until now; it also has stable growth. Gold also has a similar growth but different price movement, but if we compared the gap or percentage of price movement, Bitcoin could pump higher than Gold.  

So my overall view here is that I think having both of them is the best approach here; diversifying is always a good solution. If ever the price grows more in gold than Bitcoin, you are still making profit while holding Bitcoin.

[X-ray]

I know many people like gold and invested in it, but I could never understand why gold is always being pictured out to be the most stable asset there is, I think inflation hedge is better word attributed to gold but not necessarily stable.

From tradingview chart, in 1980 - 1982 it dropped 62%, took 20+ years until it can recover to what it was priced at. 2007 - 2008 it dropped 30%, 2011 - 2016 it dropped 44% and recently it dropped again 27%.

As it happens, the gain is also explosive went really high within, gold performs really great recently compared to 2 decades ago.

Don't believe me? look here. So it's either the chart is botched or people being hyperbolic.

This might be a hot take but gold isn't as stable as a lot of people imagined it to be, it's stabler than Bitcoin, bigger than Bitcoin and always appreciates in value, that's a fact. But it isn't smooth parabolic only appreciation.

[Catenaccio]

Looking at Bitcoin vs gold for profit, both have a very different profile.

What is your view — do you lean toward Bitcoin's upside or gold's stability for the next few years?

You must look at some things and compare them between Bitcoin and gold: Annual ROI, cyclical ROI, 10-year ROI, cycle

These things are important for your investment portfolio ROI in short term and long term. Why do I mention about short term ROI while investment itself is for long term?

Because some people have comparison like gold has better ROI than Bitcoin in last 6 months, last 1 or 2 years, that's right but if they zoom out, look a wider chart, they will see different thing, Bitcoin has outperforming ROI than Gold.

It's almost impossible to time the market, so don't try to join gold market at right time so that you can get better ROI than Bitcoin investment in long term. Long term accumulation, holding and investment are more comfortable and easy to do.
https://casebitcoin.com/
https://goldbroker.com/news/sixteen-year-gold-cycle-3125
https://goldsilver.com/learn/investing-in-gold/gold-price-cycles-market-trends/
https://calebandbrown.com/blog/bitcoins-market-cycle/
https://www.fidelity.com/learning-center/trading-investing/four-year-bitcoin-and-crypto-cycles