Is Bitcoin better than Gold and Silver?
If you look at the market cap of Bitcoin today it's US $63 billion, for the price of Bitcoin to appreciate by 100% it will only take another US $63 billion to have a market cap of just over US $126 billion and a price of US $7630 per Bitcoin.
Now I want to compare the Gold and Silver markets to Bitcoin. It is estimated the there is 171,300 tonnes or 5,507,295,000 ounces of Gold in existence, if I multiply this by US $1322 it comes out at US $7,280,643,990,000. That makes Golds market cap over 115 times bigger than Bitcoin.
For Gold to double in price from US $1322 to US $2644 it will need more than 7 trillion US$ to flow in, That's a massive amount of money. I can't find reliable figures for the amount of physical Silver there is in existence, but what ever there is it wont take a lot of money to flow in for the Silver price to go up by 100% or even 500% for that matter.
That's why I don't compare the prices to one another because the scale is completely different and thats why I think Silver is an awesome investment opportunity in the making.
I hope you like my post and thanks for the visit.
This is a great point to compare total market cap between gold vs bitcoin.
I'd also like to see the volume of transactions versus total, for both.
I suspect, for both, we would see that the tail wags the dog...
In the case of gold, the volume of actual physical, is very small compared to all gold but the price is suppressed low.
In the case of bitcoin, the volume (I suspect) is small compared to all bitcoin, and (I suspect) the price is inflated higher.
. . . the tail wags the dog . . .
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Thanks for the reply @goldkey, the volume of paper gold would dwarf the volume of Bitcoin that's for sure my friend, cheers.
I prefer what I can hold in my hand. Bitcoin may be a viable competitor to precious metals, but it's far too young of an investment vehicle and I do not believe that it's been adequately "proved" unbeatable by hackers and scammers yet.
Thanks for the reply @sirstacksalot, I don't see Bitcoin as a competitor, I see it as another tool for financial freedom from the oppressors my friend, cheers.
Bitcoin is trash in comparison to silver, gold is a good option if you want to buy money too expensive.
I don't disagree with you, silver has more upside potential than anything else, cheers.
I'm not sure we can rule out bitcoin or another type that will emerge but one thing is for certain and that is one should be holding some of each.
Silver especially.
Great insight. I agree about silver
Thanks for that, yeah I think silver will have a massive future when it finally breaks the chains, cheers @kp138.
I look at it more like bitcoin as an investment and gold and silver as a security against failing fiat.
True my friend, the metals are the bedrock and the insurance, cheers.
I'm not sure we can rule out bitcoin or another type that will emerge but one thing is for certain and that is one should be holding some of each.
Silver especially.
I think one day blockchain and gold will work together to create a perfect gold standard, or that's what I hope for @buster544, cheers mate.
The criptocurrencies market cap is tiny if you compare with precious metal market. So criptocurrencies have a lot of potential, in spite of the exponential growth that they have experienced in the last months.
If you compare BTC and PM, each have pros and cons. So it is matter of balance, we cannot say that one is better than the other.
I think silver has more potential growth than anything else on the planet @nenio. cheers.
This post has received a 8.43 % upvote from @booster thanks to: @silverbug.
This is a really good post, i love all the information and numbers you have put in there. Really enjoyed reading this. Thanks for sharing.