Gold has a large market capitalization coupled with a long history - and with it the trust of the masses. Everyone knows gold in its role as a store of value.
Fundamentally speaking, however, gold's long history is also its only advantage over Bitcoin. Bitcoin is absolutely limited and is not subject to the oracle problem in a digital world.
While gold is traded via certificates for the sake of simplicity, because it is difficult to move gold quickly from A to B, there are countless parties of trust along the chain, including third-party risks.
You can easily transport Bitcoin, you can easily store large quantities - even in your head if necessary, it is forgery-proof, etc.
Bitcoin is currently still understood by far too few people.
This discrepancy between "It's the best money in the history of mankind" and "It's digital nothingness traded according to the Greater Fool principle" is the reason for its volatility and why it doesn't yet behave like a safe haven.
Bitcoin first has to earn the trust that people have in gold. Step by step.
But once it has the trust that gold enjoys, the price will be much higher.
Fundamentally speaking, however, gold's long history is also its only advantage over Bitcoin. Bitcoin is absolutely limited and is not subject to the oracle problem in a digital world.
While gold is traded via certificates for the sake of simplicity, because it is difficult to move gold quickly from A to B, there are countless parties of trust along the chain, including third-party risks.
You can easily transport Bitcoin, you can easily store large quantities - even in your head if necessary, it is forgery-proof, etc.
Bitcoin is currently still understood by far too few people.
This discrepancy between "It's the best money in the history of mankind" and "It's digital nothingness traded according to the Greater Fool principle" is the reason for its volatility and why it doesn't yet behave like a safe haven.
Bitcoin first has to earn the trust that people have in gold. Step by step.
But once it has the trust that gold enjoys, the price will be much higher.
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@stefan_21 There is nothing to add to that.
What the masses don't see is that the big fish, "those at the top", are currently lining their pockets.
In ten years' time, everyone will be complaining again about the big money that leaves nothing for the little man - by then, a quarter of a century full of opportunities and possibilities for financial advancement will have passed.
I'll keep buying Bitcoin - anything else would be fatal!
I'm hoping for a nice bear market so that I can reallocate again.
Until then, save stubbornly and steadily 💪
What the masses don't see is that the big fish, "those at the top", are currently lining their pockets.
In ten years' time, everyone will be complaining again about the big money that leaves nothing for the little man - by then, a quarter of a century full of opportunities and possibilities for financial advancement will have passed.
I'll keep buying Bitcoin - anything else would be fatal!
I'm hoping for a nice bear market so that I can reallocate again.
Until then, save stubbornly and steadily 💪
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•@stefan_21 I admire your optimism. But you say it yourself, Bitcoin is understood by far too few people and that won't change. The majority of people don't even understand shares and never will, so how will it be possible with Bitcoin. I'm invested in Bitcoin myself, but in the long term it won't make more than 8-9% p.a. either
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•@Pacco93 I think that many people underestimate the time it takes for such a completely new "magic internet money" to reach the masses.
And I believe that BTC has developed extraordinarily for its 17 years.
Not everyone will need to understand Bitcoin. Just like not everyone understands gold. I think only the tiniest fraction of gold holders think about the properties of gold and where the value actually comes from.
They see it gaining value over time while their fiat money is losing value, and that's enough.
But if we are honest, retail investors are the least interested. The states, central banks and companies are the ones whose adoption will drive up the Bitcoin price. And for everyone else, the price is the best advertisement :)
And I believe that BTC has developed extraordinarily for its 17 years.
Not everyone will need to understand Bitcoin. Just like not everyone understands gold. I think only the tiniest fraction of gold holders think about the properties of gold and where the value actually comes from.
They see it gaining value over time while their fiat money is losing value, and that's enough.
But if we are honest, retail investors are the least interested. The states, central banks and companies are the ones whose adoption will drive up the Bitcoin price. And for everyone else, the price is the best advertisement :)
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•@Pacco93 Stefan is only looking for secondary debtors. Someone stupid has to take his bitcoins when he needs money. I mean real money, not just rows of numbers.
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@stefan_21 Gold is needed for industry and jewelry. Bitcoin, on the other hand, is far too dubious. Gold is and will always be superior to Bitcoin. Why should people switch to something that only lives from hype and hasn't existed for 20 years? Gold has been valuable to people for thousands of years and will remain so. This is simply dubious, Bitcoin on a USB stick or on a wallet and then transferring from A to B. Pointless.
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@ZeroSugar Hi :)
That's what I mean by the discrepancy.
Gold does not have a market capitalization of 32 trillion dollars because of its use in industry. If that were the case, steel, copper and the like would be worth significantly more than gold.
However, gold has established itself as a store of value due to its properties. If you are interested, please read my "Bitcoin for beginners part 1" on money.
https://getqu.in/HvPg4I/
The fact that Bitcoin only lives from hype may be your subjective perception, but I see it completely differently.
Well, you can transfer Bitcoin digitally - directly from person to person. Without a third party. I don't know what's pointless about that.
That's what I mean by the discrepancy.
Gold does not have a market capitalization of 32 trillion dollars because of its use in industry. If that were the case, steel, copper and the like would be worth significantly more than gold.
However, gold has established itself as a store of value due to its properties. If you are interested, please read my "Bitcoin for beginners part 1" on money.
https://getqu.in/HvPg4I/
The fact that Bitcoin only lives from hype may be your subjective perception, but I see it completely differently.
Well, you can transfer Bitcoin digitally - directly from person to person. Without a third party. I don't know what's pointless about that.
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@stefan_21 That's exactly it, without a third party, don't you think it will be exploited by criminals and the states will soon regulate it? Where is the transparency? It just doesn't make sense in the long term. But it's nice how you defend Bitcoin! Keep up the good work. Unfortunately, you can't convince me that the Bitcoin train has already left the station :D Thanks anyway.
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@stefan_21 However, gold is more comfortable to wear than copper or steel😜
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