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RE: Bitcoin will hit $40k within the next 5 years, even if it never catches on as a form of payment

in #bitcoin5 years ago

Bitcoin isn't gold and it isn't anything like gold.

Bitcoin's supply is limited and the supply will stop in the future. Gold is only limited to the supply discovered on Earth...as long as we don't mine any for whatever reason in any asteroids. Gold's value may actually plummet as soon as we start asteroid mining, as the "supply" will skyrocket as we bring it back. The value might crash as soon as asteroid mining even becomes more of a reality.

Bitcoin's was a little harder to use than other cryptos and more expensive, for a while, because the idiots didn't adopt updates fast enough to keep up with the tremendous rise in price and use. Now it's a lot easier to use. Gold is a bitch to use. Okay, maybe they're a bit similar there...but they're really not. From Wikipedia: "The standard gold bar held as gold reserves by central banks and traded among bullion dealers is the 400-troy-ounce (12.4 kg or 438.9 ounces) Good Delivery gold bar." That's almost 30 pounds. According to Coinmill that's worth $808,964.37. So, if I wanted to, I could carry around $1.6 million in gold, with only slight aggravation. 50 pounds isn't that heavy. But I wouldn't really wanna transport much more than that. Bitcoin is weightless however, and has no limit to the amount that can be transferred. There's just a service fee, to verify the transaction. Thankfully, that fee is much lower now. Of course, most people don't move around that much money. If they actually used gold, which no one does anymore, they would use gold coins, which were constantly shaved and whittled down until they were nothing and were pretty much useless as a currency because of it. Plus, of course, the governments were mixing in all sorts of different metals, making it so they weren't really even gold coins, but a combination.

People have been trying to label Bitcoin as digital gold because it's limited supply...but it's not. The analogy sort of barely works a bit. You can say it's supply is limited, like gold, but calling it digital gold just doesn't work. Gold was a physical asset that we assigned value a long time because of it's ease of use. We're lucky we didn't end up using lead. Guess, even though it was easy to mould into shapes, it just didn't look as pretty, and was still pretty damn heavy. Bitcoin is something new and entirely different. It's not shiny. It's not pretty. It's not heavy. You can't mould it into a coin or a watch or a ring. The only thing that is similar is the limited supply...which gold might not have in the near future, depending on how much money the morons in the government put into space funding.

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The point is that roughly $8 trillion is parked in gold mostly as a store of value. Bitcoin likely eventually captures a portion of that store of value market.

I think Bitcoin will capture more of the newer generation's investment. Many of the older generations will continue to invest in gold. Of course, in 40 years or so when the gold market crashes because of asteroid mining, then Bitcoin will seriously take off. :P

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