Bitcoin is a better gold, than gold!
Many claim that bitcoin has failed as a means of payment and is therefore tremendously overvalued.
I disagree, especially with that last part.
First of all, bitcoin is mostly just software that can be updated and upgraded to eventually do whatever it can't do today.
Meaning that just because it isn't useful as a form of payment today, doesn't mean that will always be the case.
However, that being said, I don't even think it has to be used much as a currency to be a wildly successful investment.
In many ways, bitcoin is a better gold.
The divisibility and fungibility of bitcoin are tremendously better than that of gold.
Not only that but bitcoin has a fixed known supply of coins.
Gold is limited in its supply, though as prices increase more gold is mined. There are rough estimates on how much gold there is in the world, which makes it somewhat known.
However, what about gold discovered on other planets and asteroids?
With space travel and exploration becoming ever easier and more accessible, will that eventually offer an increase in the precious metal's supply?
Possibly.
In all honesty, bitcoin can eventually do everything gold does currently, but better.
The only thing gold has on bitcoin currently is a 3000 year head start as a store of value, which makes it much more stable.
Over time bitcoin will likely become more stable as well.
Gold is currently worth roughly $8 trillion dollars.
Bitcoin is currently worth about $60 billion.
If bitcoin just captured 10% of the existing gold market, we would be looking at a market cap of around $800 billion, or roughly 13X what it is trading for today.
Capturing 10% could be something bitcoin does just within the next couple years and would equate to a price of roughly $48k per coin.
I see no reason bitcoin doesn't capture 50% or more of the gold market eventually.
Which means we are looking at a $4 trillion dollar market, even without being used as a form of payment.
If the lightning network or some other upgrade catches on and bitcoin starts being used as a currency as well, then sky is the limit in terms of potential market cap.
Getting to a $4 trillion market cap would represent about a 65X return on your investment from current levels, which equates to roughly $240k per coin.
I look at that as a nice baseline for my investment over the next 10 years.
Stay informed my friends.
Image Source:
Follow me: @jrcornel
Matter can be created with energy. Gold can be created with energy. Today, it costs a lot more energy and upkeep to create gold than its worth, but that will not always be the case.
Bitcoin is a poor unit of account because of the volatility. It will likely always be a poor unit of account because of the half-life (2020 will be fun).
However, Bitcoin is an amazing store of value and will soon™ be a great medium of exchange... which makes it way more valuable than gold... because gold is a terrible medium of exchange and it always will be.
I agree on all of these points.
bitcoin volatility 2018 5%
USD volatility 2018 7%
I believe bitcoin is better than gold for the simple reason of having gold lay around doing nothing... because its money.
We did all of this work to get the gold... to leave it to just (not)rot in a vault.
Bitcoin is so much better because it doesn't waste real world resources like that.
Copper is used as a store of value, and when someone needs to liquidate, it destroys the market. Tons of supply that was locked up, immediately comes back onto the market.
In the future, gold will become significantly worth less.
As in, all the people that believe in gold will die off, while everyone being born will know cryptos.
Next, gold will be seen as Rotshchildren's money. And, we don't take his money.
Last, man will learn to synthesize gold. First vibrating it out of rock, and next by creating it out of aether.
The gold market will go away.
Not sure it will go away, but I agree it could be worth a lot less in the future.
Bitcoin = Gold 👍💰👍
A better gold!
Gold is gold, and Bitcoin will never replace it. A massive solar flare would send us all back to the stone ages for a few decades or centuries and so the connected economy, and thus Bitcoin, will be irrelevant.
Bitcoin is digital gold... Emphasis on digital. Bitcoin is as fragile as our current connected fiat system.
Several things... If a "massive solar flare" happened, we wouldn't survive to talk about it. Secondly, if a mild one that wiped out just the electronic grid happened, it wouldn't take decades or centuries to rebuild. We would rebuild rather quickly. It would be chaotic at first, but the rebuilt would be much faster than your speculations.
I dont think you understand the implications of the entire planet blacking out. The rebuild of the economic system would take 20-30 years. The electrical grids would probably take half a decade. The economic comeback of all nations would take a century or half a millenium.
The western world, and Asian technological hotspots would likely be the first to bounce back, the rest of the planet would be devastated.
Bitcoin is just numbers in a computer. Gold is gold.
Just because infrastructure is wiped out doesn't mean the know-how is. Yes it would be chaotic and a catastrophe at first, but the rebuild would start immediately and happen much faster than your scenario implies. Yes it would take a long time to get back to where we are today, there is no denying that, but to get the internet and other electronic devices such as cell phones up and running again, we are talking months, not years.
Also, in your doomsday scenario, I am not sure holding gold will do much for you either. Food, water, shelter, and ammunition will be much more valuable than a shiny rock.
Surely, but we're not talking about barter. We're talking about Gold and Bitcoin (Crypto). smh.
Yes we were talking about gold and bitcoin initially. Then you brought up a doomsday global black out event and how gold reigns suppreme in that environment, and my point was it wouldn't be very valuable even compared to food water and ammunition. SMHM
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvoting this reply.
So those who say that bitcoin is dead, are just been funny. 😄
That and foolish.
It will just take one truly great user interface to really get things moving in the right direction given it has already proven itself to be more versatile than gold so the future is bright, or should I say the future glimmers with hope!
Posted using Partiko iOS
It sparkles with bitcoin!
I think Bitcoin was overvalued...at it's peak for the capabilities at the time. Back then they didn't want to accept updates that would decrease the cost of transactions. Using Bitcoin back then sucked.
But, after the crash, they did accept some changes. As you said, software can be updated. At it's current price, with the updated capabilities, it's a great investment in my opinion.
But, it's not like Bitcoin was a "bad" investment, even at it's heights. Well...unless the idiots never updated it. How fun would it be to have it cost hundreds to move your Bitcoin and take a week? No...thankfully they finally updated it after it crashed.
Now I think it's likely to reach new heights...eventually. But that all depends on how long it takes to get more users and fans.
Yep, exactly. Whatever bitcoin can't do currently, it can in theory do down the road. Segwit and Lightning are solving a lot of the major issues with using it. Now we just need regulatory help and it will be set as a legitimate store of value and possibly as a form of payment.