Bitcoin vs Gold: which one offer better protection against currency devaluation?

[aoluain]

I have so many questions regarding owning Gold:

1. - How much do we want to buy?

2. - what denominations, 1g or 1oz or 1kg bars and rounds? In times of crisis where I need to
trade physical Gold I should consider small denominations right?

3. - do we want to take ownership of the Gold or are you happy with owning paper Gold?

4. - how do we store physical gold

5. - are we happy to pay fees to own your Gold?

6. - can we buy Gold straight from the 'forge', I mean I dont necessarily want a fancy lions
head on my Gold.

am I the only one here on this thread who is 100% in Bitcoin.

I would probably consider some Gold but I dont want to pay a premium for a carded bar.

[Fiatless]

So, I would genuinely like to hear the opinions of experienced members here.

Both assets have their strong points and weaknesses. Gold is stable, less risky, and generally accepted as an asset globally. Bitcoin is decentralized, appreciates more,, and portable. Both of these are good hedge against inflation since both appreciates in value. The choice any of them will depend on individual goals. Those who are tech savvy and can take risk would prefer Bitcoin. While conservatives might go with gold. However, it is not out of place to have both of them in your investment portfolio.

[LFC_Bitcoin]

Bitcoin imo offers better long term protection against currency devaluation. Its supply is capped at 21 million, governments cannot print more of it or dilute its value. Gold has a proven track record but its supply can increase through mining.

Bitcoin is more volatile but its scarcity, portability and independence from governments make it a compelling alternative to gold.

[macson]

There's no point in continuing to debate which is better, gold or Bitcoin. Both are good for protecting against currency devaluation. Bitcoin has great potential going forward --- although Bitcoin tends to be more volatile, in the long term, this can be offset. Gold, on the other hand, is more stable, and its demand is supported by a more established market. Depending on your preferences and risk tolerance, you can choose which is best for you.

[Mia Chloe]

~snip

It’s high time y’all stopped comparing bitcoin with gold they are literally two very different things forms of investment from type to centralization to ROI and many others. The thing is there’s basically nothing wrong in investing in either of them it just depends on your risk appetite.

Bitcoin is crypto and as such is more volatile and comes with a higher risk margin. The only difference is it’s way more convenient than buying and selling gold.

[icebar]

In the case of gold, I would say that yes, gold is still very popular among people in terms of store of value, but times have changed. People of the current generation now understand very well which is the most profitable, which one has more transparency. Gold is thousands of years old and its volatility is low, but a person needs a safe place to store it. A person cannot easily transfer it even if he wants.

Bitcoin can be considered as a digital form of gold. Since it is digital, people can store it with themselves and if necessary, they can also transfer that asset to any place in the world as per their wish. Since it has a fixed supply, people's interest in it increases even more. The more people try to keep Bitcoin in their possession, the more the price of Bitcoin will continue to increase. Though Bitcoin is not an old gem like gold. Comparatively Bitcoin has quickly surpassed gold. People are starting to consider Bitcoin as a safe haven for their wealth rather than gold in this age of technology. As global instability increases, ordinary people are choosing Bitcoin to protect their wealth from inflation.

[uchegod-21]

We need to start normalising not getting into an argument with people who think that gold is better than bitcoin in terms of protection against currency devaluation. Ofcourse we shouldn't be expecting everyone to agree with us, those are two different asset class and people will choose either of them for reasons best known to them.

For those who are attracted more to stability and low risks, we don't expect them to consider bitcoin to be better since bitcoin is subject to volatility. They can always choose what they think is better. The most important fact that cannot be disputed is that both of them protect against currency devaluation, after all, we are still thesame people that  refer to bitcoin as digital gold.

However, if I am to choose, I will choose bitcoin.

[noorman0]

The devaluation of fiat currency is usually more measurable, as it stems from the policies or interventions of governments or central banks; it would therefore be odd to struggle with how to avoid it; While, at the same time, we shouldn't pretend that Bitcoin couldn't also undergo depreciation, potentially in an even more uncontrolled manner within a free market. For this reason alone, I would choose gold.

[Adiljutt156]

There's no point in continuing to debate which is better, gold or Bitcoin. Both are good for protecting against currency devaluation. Bitcoin has great potential going forward --- although Bitcoin tends to be more volatile, in the long term, this can be offset. Gold, on the other hand, is more stable, and its demand is supported by a more established market. Depending on your preferences and risk tolerance, you can choose which is best for you.

Bitcoin already replaced gold for strategic reserves, with its potential and supply being the biggest plus points for everyone. Things have never been easy, but it keeps growing and has a good community, which is giving extra doze for people who are always having negativity about Bitcoin.
Without any doubt, gold has its own plus points, but now Bitcoin is also doing enough, which is increasingly giving good returns to investors, and people's confidence is also increasing. If we talk about preferences about risk management, it's also not at the same level where it was in the past because many good developments bring good stability, and now volatility is also minimized. Hopefully more things will bring its stability to a good level.

[GeorgeJohn]

Between Bitcoin and gold, which one would you trust more to preserve your wealth against currency devaluation?

Both digital currencies can be use to preserve wealth against inflation, it depends on the one you value most and how important it's for you..they're people prefer bitcoin due to it's fast growth dominance, and demand and supply...why some people loved to preserve with Gold because it has recorded thousands of years for it existence...And it's value doesn't depreciate outright in the market, so millions of people have trust on gold more than bitcoin...

So, it's based on the choice of anyone to preserve it wealth with any of this valuable asset, and for me none of them is unacceptable to be use to preserve against inflation...

[UchihaSarada]

Both Bitcoin and Gold are good investments that can protect you against currency devaluations because they keep their value for long, and they have all been able to maintain their values for long and they keep leading among the top most valuable investments.

They are both very good investment assets, one is physical, another one is digital. It's another reason to diversify investment capital into Bitcoin and gold, if you have enough big capital, rich enough, diversification for your financial safety in long term will be your main concern.

Gold will bring less profit than Bitcoin in long term but it's worth to assign part of your investment capital as well as wealth into gold, for better risk control.

Of course, if people don't prioritize risk control, they can go with all investment capital and wealth in Bitcoin.

[Bd officer]

However, it left me with a question I thought would be interesting so I educate myself: Which one really offers better protection against currency devaluation?

Both are good options as protection against currency depreciation but if you ask people in my country they will say Gold is the best option. Because Bitcoin is not legal in my country, people will not want to take risks from this aspect and they will consider Bitcoin as more risky so they will choose Gold.
Anyway I think everyone on this platform will give more priority to Bitcoin. I am no exception here, if the question is based on these two assets Gold and Bitcoin then I will choose only BTC. I find it more troublesome to store than to buy gold. If I want to diversify then I will choose land and BTC.

[InfoDegan]

This morning, I was with few of my neighbours and somehow our casual conversation turned into a debate about money, inflation and how people can protect the value of their wealth over time.
One question eventually took over the entire discussion:
Between Bitcoin and gold, which one would you trust more to preserve your wealth against currency devaluation?

Interestingly, we had completely different opinions.
One of my neighbor strongly believed gold was still the better option, his argument was that gold has existed for centuries, has survived wars, economic crises and the collapse of different currencies. According to him, people have trusted gold long before modern financial systems came into existence and he sees no reason to abandon that confidence. He pointed out that Bitcoin's price can experience significant fluctuations within relatively short periods, he questioned whether an asset that can lose a substantial percentage of its market value in a short time can genuinely be considered a reliable store of value.

Although my voice was not strong enough but I disagreed with him, I argued that Bitcoin represents a different generation of money, with a decentralised network and ability to be transferred across borders, I told him Bitcoin offers something gold cannot easily provide but i was not confident enough.

By the time our conversation ended, he had completely convinced the others and I was not happy.

However, it left me with a question I thought would be interesting so I educate myself: Which one really offers better protection against currency devaluation?

So, I would genuinely like to hear the opinions of experienced members here.

I think your neighbor has a fair point. A lot depends on how long you plan to hold onto your investment and which risks worry you most.

Gold has been trusted for generations, and that history gives people some reassurance when the economy feels uncertain. Its price also tends to fluctuate less than Bitcoin’s in the short term.

Bitcoin has its own appeal, though. Its supply is capped, you can send it across borders, and you can hold it yourself without needing a bank. For people worried about their currency losing value, those features are worth considering, even if they don’t guarantee Bitcoin’s price will rise.

For me, the biggest concern is the volatility. If you might need that money in a year or two, a sharp drop could put you in a difficult position. People with a longer timeline may be more comfortable taking that risk because they believe adoption will grow, but that’s still a bet on the future.

[MusaMohamed]

Gold has been trusted for generations, and that history gives people some reassurance when the economy feels uncertain. Its price also tends to fluctuate less than Bitcoin’s in the short term.

Bitcoin has its own appeal, though. Its supply is capped, you can send it across borders, and you can hold it yourself without needing a bank. For people worried about their currency losing value, those features are worth considering, even if they don’t guarantee Bitcoin’s price will rise.

This the bullish case for Bitcoin book has many insights and there are comparisons between Bitcoin and Gold.

Gold has been trusted by many human generations, and Bitcoin has stepped on a similar pathway to be trusted by many human generations. With time, the Lindy effect will be shown and become bigger, you can see it in the above book.

This chart is taken from that book.

For me, the biggest concern is the volatility. If you might need that money in a year or two, a sharp drop could put you in a difficult position. People with a longer timeline may be more comfortable taking that risk because they believe adoption will grow, but that’s still a bet on the future.

With time, Bitcoin value increases, its market cap becomes bigger, and its price volatility will become smaller, and future ROIs will be smaller too. It's how good investment asset grows and its ROI changes with time.

[philipma1957]

no one knows which will be better.

I have
gold
silver
platinum
btc
spacex stock
bonds
cash

why because I am almost 70 and do not want the volatility .

In 2032 when I turn 75 btc could be 500k or under 10k

that simply does not work for me to be all in with btc.

as for gold being around it is already a fact that mercury can be atomically altered into true real gold


simply a different way to mine gold.  So if it can be done cheaply enough gold could be common or not.

thus having silver gold and platinum in the form of limited coins like this

https://www.greatcollections.com/Coin/2285171/2014-W-100-One-Ounce-Platinum-American-Eagle-Statue-of-Liberty-NGC-Proof-70-UC-John-Mercanti-Signed-Label

is a decent way to safeguard wealth

[pooya87]

If we only focus on long term then both of them have been doing that perfectly for many years (Bitcoin since 2009 which is when it was invented). The only difference is the profit they'll give you on top of protecting you against fiat devaluation. And in that sense, bitcoin is the winner since unlike gold, bitcoin is in its adoption phase and that phase brings about much bigger price rises which in turn provide more profit.

[SeriouslyGiveaway]

no one knows which will be better.

I have
gold
silver
platinum
btc
spacex stock
bonds
cash

why because I am almost 70 and do not want the volatility .

In 2032 when I turn 75 btc could be 500k or under 10k

that simply does not work for me to be all in with btc

At different ages, people will have different main priorities, and with the middle aged people especially the elderly, they will want to have something solid and safest. At least, if they don't lose their capital, they're good, and volatility actually has risk of causing loss for their initial capital. At old ages, they are no longer be able to work too much, even completely unable to do that, and no longer have opportunities to do something for having profit and fixing their loss in the past.

This financial challenge and mindset barrier actually put many middle age people and the elderly out of Bitcoin investment communities but it's explainable.

If we only focus on long term then both of them have been doing that perfectly for many years (Bitcoin since 2009 which is when it was invented). The only difference is the profit they'll give you on top of protecting you against fiat devaluation. And in that sense, bitcoin is the winner since unlike gold, bitcoin is in its adoption phase and that phase brings about much bigger price rises which in turn provide more profit.

Recent years, gold outperformed Bitcoin but if we look at the whole period since 2009 to 2026, Bitcoin considerably outperformed gold. Both can be assets in a basket of investment assets like the phillipma1957 did and explained above.

Fiat currencies are very inflationary so their values are devalued and purchasing power decreases over time.
The declining purchasing power of the US. dollar over years.

[freedomgo]

I couldn't be biased although I would like to answer Bitcoin but based on history, gold has been one of the most stable assets in the world. I mean some countries ban Bitcoin, but almost all countries would want to own gold as part of their reserves. But we don't really need to choose, both can be good investments to protect your money from inflation, so why not just invest in both.

Eventually there could come a time when hyperinflation happens in a certain country or possibly even in our own country, I hope not, it's affected by many factors, I won't mention them anymore as you probably already know if you do your own research, so it's better to be prepared for it. My first priority is Bitcoin as I can carry it anywhere, gold is second.

[Miles2006]

Bitcoin vs Gold, this comparison has been for long and for a fact both Gold and bitcoin happens to be a different investment choice. It all depends on what the person needs, op got into an argument and couldn’t defend bitcoin well I doubt if that was the case instead people made their choice after hearing both value of bitcoin and gold. The risk that comes with a high volatile investment sometimes can be tempting for many reason why they choose gold over bitcoin, aside the number of years gold has gained value, many don’t show concern in this aspect rather they’re after a more stable asset.
Personally, bitcoin is valuable in this aspect, bitcoin gives a high return due to the massive growth, if anyone is willing to take the risk then bitcoin is the perfect investment choice.

[m2017]

This morning, I was with few of my neighbours and somehow our casual conversation turned into a debate about money, inflation and how people can protect the value of their wealth over time.
One question eventually took over the entire discussion:
Between Bitcoin and gold, which one would you trust more to preserve your wealth against currency devaluation?

Instead of swinging from one extreme to the other, why not use a combined approach - essentially a form of risk diversification, wouldn't you agree?

Furthermore, "financial tools" that protect against the currency devaluation are not limited solely to gold or bitcoin.

Interestingly, we had completely different opinions.
One of my neighbor strongly believed gold was still the better option, his argument was that gold has existed for centuries, has survived wars, economic crises and the collapse of different currencies. According to him, people have trusted gold long before modern financial systems came into existence and he sees no reason to abandon that confidence. He pointed out that Bitcoin's price can experience significant fluctuations within relatively short periods, he questioned whether an asset that can lose a substantial percentage of its market value in a short time can genuinely be considered a reliable store of value.

Although my voice was not strong enough but I disagreed with him, I argued that Bitcoin represents a different generation of money, with a decentralised network and ability to be transferred across borders, I told him Bitcoin offers something gold cannot easily provide but i was not confident enough.

What is the point of arguments and confrontation when it comes to finance? One only needs to compare the returns on gold and bitcoin to conclude which asset is the best.

By the time our conversation ended, he had completely convinced the others and I was not happy.

An asset doesn’t automatically become the absolute best hedge against devaluation just because your neighbor happens to be more eloquent and persuasive in an argument.

As I’ve said before, need to look at the figures here.

Source: https://www.longtermtrends.com/bitcoin-vs-gold/

In my view, it’s hard to argue with the figures here. The white curve is bitcoin, the yellow one is a gold.

However, it left me with a question I thought would be interesting so I educate myself: Which one really offers better protection against currency devaluation?

Any asset that appreciates in value faster than money loses its purchasing power.

Such an asset could be real estate, land, or something else entirely. However, as the saying goes, the devil is in the details. Not all real estate or land will prove to be a sound investment capable of hedging against the devaluation of money; this will depend on the specific location and the local demand for that particular "resource".