The rational thought is that money moves from gold into bitcoin. The only scenario I see gold out-performing bitcoin is one where the electric and internet grid go down. But even in that apocalyptic scenario, guns and bullets would be far more valuable than gold.
Two words: National Security. See: NDAA. Any excuse can be used to lock down all telecommunications services and confiscate private property. No meshnet system is realistically viable - yet.
Bitcoin will outperform gold on a relative basis. In terms of value relative to fiat, that's almost a certainty. What's irreconcilable is the notion that gold will be discarded when the vast majority of the world's human population is familiar with, and values it. Three years is not nearly enough time for Bitcoin to become fully pervasive throughout the world's societies - people simply are incapable of changing that quickly, especially in more developed societies with rigid structure.
What's more likely to happen is that Bitcoin will continue to grow after
gold has reached a realistic valuation. The potential for gold to reach 10% of global financial asset value is strong, but anything far above that might not be. Bitcoin's features make it possible for the system to be used in ways that gold simply cannot, so permeation could easily equal or exceed that of gold. This may take another few years after gold's reintegration takes place around, probably post 2015. By its maximal point, a full Bitcoin could be in the million dollar range (that's 2012 dollars).
Physical gold will not be discarded
as cypherdoc insists; it is being pushed into primacy by not only collective peoples from various cultures, but central banks around the world, even the BIS
. Yes, Bitcoin will eventually
outperform gold in absolute terms, but these things will occur during the majority of this decade, not overnight. If physical
gold is ever discounted, it will be because of an inability to be maintained limited supply, not because of monetary theory that only applies to purely abstract concepts with no grounding in reality.
Finally, how many more MF Globals
will it take before you wake up? Will your own trading funds have to be absconded with? Then it won't matter how high the dollar reaches, and all you'll have is your remaining physical gold and bitcoins. What if an Internet kill switch is engaged? How will you exchange your bitcoins? You can't get from here to Bitcoin ruling the world without going through the turmoil in between, and for that, there's gold - real, physical, in-your-hand gold.
People are talking about Pirate's lending operation being a Ponzi - this
is the real one. So keep racking up those squiggly lines and paper profits in utterly fraudulent markets. They'll do you very well
when the exchanges tell you to sod off, because the asset freezes and seizures will keep moving up the ladder to the very top. Not worth the moment-to-moment risk, IMO. There are some nasty rumours about TD Ameritrade making the rounds...
Bitcoin + physical
I also like the way cypherdoc has misdirected from gold to placing immense emphasis on gold related
the same thing as physical
: serendipitously, I just came across an article at BTC Wallet
related to an Internet kill switch.