Bitcoin or Gold? What would you pick?

[SelbyTsang]

Picture this. You get approached on the street and offered a straight deal: walk away with Bitcoin or walk away with gold of the same value. If given a choice to walk away with either Bitcoin or gold of equivalent value, what would you pick?

Asians and Westerners were asked in Taipei in Chinese and English if they would take Bitcoin or gold home with them that day, and the answer might surprise you...

http://www.youtube.com/watch?v=m6GiC8dqN9A

We just shot a video outside the Taipei 101 skyscraper area here and gave people a chance to answer if they would walk away with either Bitcoin or gold- and why.

If you were approached and were offered the same deal, would you walk away with Bitcoin or gold in your pocket, and why???

Nice experiment, and nice video with both Chinese and English subtitles.
Off-topic but I am curious, did the people being interviewed really get the bitcoin and gold?

[bryant.coleman]

Off-topic but I am curious, did the people being interviewed really get the bitcoin and gold?

Yes. They really got the Bitcoin or gold. Just one gram of gold or eqv. BTC (equivalent to $40). One guy was saying in the video that it is one oz. of gold, which was incorrect. So not a very big amount.

[Maximizer]

Well in my opinion it's a hard pick as there are both limited resources of both so eventually they will be rare commodities, so either will be valuable...
In my opinion, Gold is worth something no matter if it is the year 1000 or the year 5000...So in my personal opinion gold is the better option. Bitcoin is no doubt the best digital commodity, but digital can always be wiped out and thats not a risk I would take if I had the option to own gold over bitcoin!

[Pony789]

Well in my opinion it's a hard pick as there are both limited resources of both so eventually they will be rare commodities, so either will be valuable...
In my opinion, Gold is worth something no matter if it is the year 1000 or the year 5000...So in my personal opinion gold is the better option. Bitcoin is no doubt the best digital commodity, but digital can always be wiped out and thats not a risk I would take if I had the option to own gold over bitcoin!

But as RUEHL mentioned earlier, how can you verify that it is real gold before picking the gold?

[Yakamoto]

Well in my opinion it's a hard pick as there are both limited resources of both so eventually they will be rare commodities, so either will be valuable...
In my opinion, Gold is worth something no matter if it is the year 1000 or the year 5000...So in my personal opinion gold is the better option. Bitcoin is no doubt the best digital commodity, but digital can always be wiped out and thats not a risk I would take if I had the option to own gold over bitcoin!

But as RUEHL mentioned earlier, how can you verify that it is real gold before picking the gold?

This is the hard part. There is no 100% guarentee, but it has a higher chance of having at least some value as opposed to when the power goes out. Since Bitcoin doesn't have much of a physical representation, it's harder to use without the use of electronics. But gold IS somewhat likely to be counterfeited, but it all comes down to luck, mostly. You'll never have 100% guarentees, unless you did it yourself.

[gentlemand]

If the power goes out for good I really can't see gold having much value other than its prettiness. It's an abstract reward of value that only retains that in a society that functions normally.

I'd be doing deals with the guy with a barn full of toilet paper.

[vipgelsi]

Gold/silver

[Beef Supreme]

If the power goes out for good I really can't see gold having much value other than its prettiness. It's an abstract reward of value that only retains that in a society that functions normally.

I'd be doing deals with the guy with a barn full of toilet paper.

Hahaha.  And then selling everything but the kitchen sink for a gallon of drinking water.

[yanlap]

I would choose gold

[marife01]

If just the same value between the two, I would pick the gold.
The value of gold here is increasing and I could easily translate it to money.

[bryant.coleman]

If just the same value between the two, I would pick the gold.
The value of gold here is increasing and I could easily translate it to money.

Wrong argument. In 2012, Gold was trading at $1,800 / Oz. Now it has come down to $1,280 / Oz. That is a decline of more than 40%.

Now check bitcoin. In 2012, BTC was trading at $5/coin. Now it is trading at $430/coin. That is an increase by 8,600%.

[marife01]

If just the same value between the two, I would pick the gold.
The value of gold here is increasing and I could easily translate it to money.

Wrong argument. In 2012, Gold was trading at $1,800 / Oz. Now it has come down to $1,280 / Oz. That is a decline of more than 40%.

Now check bitcoin. In 2012, BTC was trading at $5/coin. Now it is trading at $430/coin. That is an increase by 8,600%.

I thought the increasing prices of gold pieces/jewelries in the market could be my reference of the real value of gold. Well, thanks for giving me the information especially about the Bitcoin. There is really a big difference.

[bryant.coleman]

I thought the increasing prices of gold pieces/jewelries in the market could be my reference of the real value of gold. Well, thanks for giving me the information especially about the Bitcoin. There is really a big difference.

Well... the bullion rates for gold is not increasing. If the prices of Gold jewelry is increasing in your country, a possible reason can be the change in the value-added tax (VAT) or the import duty.

[Moonway99]

I'm not familiar with gold, silver and other earth resources so I would go with Bitcoins because I'm just more familiar with them and about gold I basically don't know anything like price, history and other so I can really compare which investment Is better. I'll have a task to find out more about gold now

[marife01]

I thought the increasing prices of gold pieces/jewelries in the market could be my reference of the real value of gold. Well, thanks for giving me the information especially about the Bitcoin. There is really a big difference.

Well... the bullion rates for gold is not increasing. If the prices of Gold jewelry is increasing in your country, a possible reason can be the change in the value-added tax (VAT) or the import duty.

It could be because of the less supply just like the law of demand and supply.
I just saw the value of BTC today and I would now say, I chose Bitcoin.

[noviapriani]

hmmm I beleive I would pick bitcoin cause at least I wont have to deal with middle man when I have to sell it.  Gold loses value alone due to people that wanna make money on it.

[hightide]

Both serves different purpose hence comparison not relevant.

[IamCANADIAN013]

I would pick Gold.  If shit ever does hit the fan, I highly doubt you will be to trade digital money for basic needs like food and water. With no electricity, bitcoin will be useless.

[OROBTC]

...

I have enjoyed the discussions above, the back-and-forth.

Of course owning both is better, diversification is almost always better.  And like one poster above remarked, you could choose gold, THEN sell half and buy BTC...

Speaking overly generally (as this is hypothetical and no one can predict the future) I would list the below as what each person might hold as %-age of net assets beyond real estate and stocks & bonds.

Gold% > BTC% > CA$H% (physical dollars in your hand/safe) > electrons at the bank%

Everyone should have cash at home for the unexpected...

...

[bryant.coleman]

I would pick Gold.  If shit ever does hit the fan, I highly doubt you will be to trade digital money for basic needs like food and water. With no electricity, bitcoin will be useless.

Hmmm... talking about post-apocalyptic situations, I will agree that gold will be a better option. During the Soviet famine of 1932 (in parts of Ukraine known as Holdomor), fiat money was completely useless, as it couldn't be used to buy food. Those with gold coins / jewelry survived, as they exchanged it for wheat or barley flour. Others perished. Some 4 million died in Ukraine alone, and 8 million more died in Russia and Kazakhstan.