Supply: Both gold and bitcoin have limited supply, but the argument is more bullish for bitcoin over the long term.
**Why so? Currently, both are being "mined" at about the same rate of approx +1.7% per year of existing supply.
Authenticity: Bitcoin and altcoins can be verified on the blockchain in a matter of seconds. Verifying gold takes much longer and is more expensive.
**Any decent coin dealer, collector, investor can determine the authenticity of US Gold coins in a matter of seconds too.
It doesn't cost anything either. For those holding 100 or 400 oz gold bars you're in a different league and not even in the same discussion as 99.9% of holders. Gold jewelry can also take a few seconds to verify purity.
Transferability: Bitcoin is a digital asset, so it can be sent via the internet to anyone around the world with a connected device. Gold can also be transferred, but delivering a physical bar of gold is not easy (did I mention they’re heavy?) and definitely not safe.
**Again, almost no investors of gold world wide hold heavy gold bars. 99% hold 1 oz gold coins and smaller or jewelry.
You can drive your gold to a buyer within 1-25 miles and get cash/funds. If you're one of the wealthy <1% that hold 10-100 oz and larger gold bars, you have no problem with your finances or investments. Transferability is not a big concern to you.
Liquidity: Bitcoin is sold on any number of large, billion-dollar exchanges in a matter of seconds. Gold is not so easily converted into cash, making it a lot less liquid than bitcoin.
**Turning your physical gold into cash or equivalent could be done in as little as 1-2 hrs. For those trading gold futures and options or gold stocks on the major exchanges, your entry and exit is as quick as Bitcoin...and essentially the same thing. Paper for Paper.
Legal Tender: Bitcoin is only 12 years old, but it is already a payment option at many places … with more joining the list each day. Tesla (NASDAQ:TSLA) recently announced its hope to accept bitcoin as payment for vehicles. Gold, on the other hand, is rarely used to buy goods and services. Can you imagine walking into the mall with a bar of gold in your pocket?
**No I can't imagine walking into a mall with a gold bar. Almost no one would. But I can imagine any number of customers with sovereign gold coins or gold jewelry walking into a Jewelry Store, Pawn Shop, Coin Dealer, Gold Buyer in numerous stores in most any decent sized city in the country and walking out with cash/equivalent. Gold and other precious metals around the world are frequently traded/bartered for other goods and services. Sounds like this author has an "only" USA-centric vision of how gold works around the world.....yet the non-USA nations of the world probably own less than 10-20% of the world's total gold. If you walked into a Tesla dealership with 100 USA 1 oz. gold eagles or Buffalo's....something tells me you could drive out of there with a car within 1-2 hours. If that Tesla dealer didn't want your business, pick up the phone and call the next nearest Tesla dealership. Frankly, I can't imagine "walking into the mall with a bar of gold in my pocket".....because most malls are now closed, dead or dying. There are better places to walk your gold to. Bitcoin is not legal tender.
Taxes and Capital Gains: Doesn't appear to be any difference between the two. Bitcoin and Gold both subject to capital gains/income taxes. Either can end up in IRA's.
**Financial Market lockups or freezes - crashes - extended power outages - force majeure - riots, etc: Whatever physical assets you have in your pockets or at home is all you have. Sorry Bitcoin.
====something tells me that the author of that article never bought and sold a gold coin or bar in their life=====
If "better" means performance, it's bitcoin, hands down.
Until bitcoin price reflects a threat of government regulation it will continue to outperform gold simply because gold is already under control (COMEX). No asset competes with or is a threat to the dollar as long as it is traded in dollars. $10,0000 gold or $100,000 dollar bitcoin is no more a threat to the dollar than is a $50,000 DOW. This makes one realize that it is not competition with the dollar that concerns the rule makers - it is where investment dollars are parked and who is raking in the parking fees. The lot on Wall St. is empty when it comes to trading gold or cryptos.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb said:
If "better" means performance, it's bitcoin, hands down.
Until bitcoin price reflects a threat of government regulation it will continue to outperform gold simply because gold is already under control (COMEX). No asset competes with or is a threat to the dollar as long as it is traded in dollars. $10,0000 gold or $100,000 dollar bitcoin is no more a threat to the dollar than is a $50,000 DOW. This makes one realize that it is not competition with the dollar that concerns the rule makers - it is where investment dollars are parked and who is raking in the parking fees. The lot on Wall St. is empty when it comes to trading gold or cryptos.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
Gold in your lockbox much better than Crypto. Gold (silver, copper) is something, even if held as futures contracts. Crypto is just a number that moves. It may turn out that there is no ironclad repository for Bitcoin or Ether.
@derryb said:
if you can't stomach volatility you should just continue to stay home where you can be a make believe quarterback from the safety of you armchair.
Those that actually trade cryptos might see it as opportunity.
Some may see it as a reason why bitcoin is NOT better than gold.
If "better" means performance, since the beginning of bitcoin it is has left gold in the dust (pun intended).
If "better" means you can hold it in your hand and dream of its future, then gold is better.
Until regulation lets the air out of cryptos, bitcoin will continue to be a better investment, dollar insurance and inflation hedge than gold. I like gold. I liker silver even more. My bank account loves cryptos.
Gold is an investment to those that purchased it at $400. It's a store of wealth to those that purchased it at $1600. It's neither to those that purchased it at $2000.
Bitcoin was a great investment to those that purchased it at $2. It's a store of wealth to those that purchased it at $14. It's been an even bigger loser than gold for those that purchased it at $30K - 60K.
But for both it's all about when you get, get out and convert it into fiat dollars to purchase most commodities.
When a major government, banks and corporations announce they are switching to Bitcoin I will accept it has arrived. Until then it's a highly volatile, speculative investment.
The longer I live the more convincing proofs I see of this truth, that God governs in the affairs of men. And if a sparrow cannot fall to the ground without His notice is it possible for an empire to rise without His aid? Benjamin Franklin
Comments
Supply: Both gold and bitcoin have limited supply, but the argument is more bullish for bitcoin over the long term.
**Why so? Currently, both are being "mined" at about the same rate of approx +1.7% per year of existing supply.
Authenticity: Bitcoin and altcoins can be verified on the blockchain in a matter of seconds. Verifying gold takes much longer and is more expensive.
**Any decent coin dealer, collector, investor can determine the authenticity of US Gold coins in a matter of seconds too.
It doesn't cost anything either. For those holding 100 or 400 oz gold bars you're in a different league and not even in the same discussion as 99.9% of holders. Gold jewelry can also take a few seconds to verify purity.
Transferability: Bitcoin is a digital asset, so it can be sent via the internet to anyone around the world with a connected device. Gold can also be transferred, but delivering a physical bar of gold is not easy (did I mention they’re heavy?) and definitely not safe.
**Again, almost no investors of gold world wide hold heavy gold bars. 99% hold 1 oz gold coins and smaller or jewelry.
You can drive your gold to a buyer within 1-25 miles and get cash/funds. If you're one of the wealthy <1% that hold 10-100 oz and larger gold bars, you have no problem with your finances or investments. Transferability is not a big concern to you.
Liquidity: Bitcoin is sold on any number of large, billion-dollar exchanges in a matter of seconds. Gold is not so easily converted into cash, making it a lot less liquid than bitcoin.
**Turning your physical gold into cash or equivalent could be done in as little as 1-2 hrs. For those trading gold futures and options or gold stocks on the major exchanges, your entry and exit is as quick as Bitcoin...and essentially the same thing. Paper for Paper.
Legal Tender: Bitcoin is only 12 years old, but it is already a payment option at many places … with more joining the list each day. Tesla (NASDAQ:TSLA) recently announced its hope to accept bitcoin as payment for vehicles. Gold, on the other hand, is rarely used to buy goods and services. Can you imagine walking into the mall with a bar of gold in your pocket?
**No I can't imagine walking into a mall with a gold bar. Almost no one would. But I can imagine any number of customers with sovereign gold coins or gold jewelry walking into a Jewelry Store, Pawn Shop, Coin Dealer, Gold Buyer in numerous stores in most any decent sized city in the country and walking out with cash/equivalent. Gold and other precious metals around the world are frequently traded/bartered for other goods and services. Sounds like this author has an "only" USA-centric vision of how gold works around the world.....yet the non-USA nations of the world probably own less than 10-20% of the world's total gold. If you walked into a Tesla dealership with 100 USA 1 oz. gold eagles or Buffalo's....something tells me you could drive out of there with a car within 1-2 hours. If that Tesla dealer didn't want your business, pick up the phone and call the next nearest Tesla dealership. Frankly, I can't imagine "walking into the mall with a bar of gold in my pocket".....because most malls are now closed, dead or dying. There are better places to walk your gold to. Bitcoin is not legal tender.
Taxes and Capital Gains: Doesn't appear to be any difference between the two. Bitcoin and Gold both subject to capital gains/income taxes. Either can end up in IRA's.
**Financial Market lockups or freezes - crashes - extended power outages - force majeure - riots, etc: Whatever physical assets you have in your pockets or at home is all you have. Sorry Bitcoin.
====something tells me that the author of that article never bought and sold a gold coin or bar in their life=====
There are an Infinite number of alternative cryptocurrencies to "limited supply" Original Bitcoin.
There's only one gold.
Liberty: Parent of Science & Industry
If "better" means performance, it's bitcoin, hands down.
Until bitcoin price reflects a threat of government regulation it will continue to outperform gold simply because gold is already under control (COMEX). No asset competes with or is a threat to the dollar as long as it is traded in dollars. $10,0000 gold or $100,000 dollar bitcoin is no more a threat to the dollar than is a $50,000 DOW. This makes one realize that it is not competition with the dollar that concerns the rule makers - it is where investment dollars are parked and who is raking in the parking fees. The lot on Wall St. is empty when it comes to trading gold or cryptos.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
What happened to that other similar thread. I wish I could find it, just long enough to say WINNING!
Nice Gold.
You Like That! YOU LIKE THAT!
Successful card BST transactions with cbcnow, brogurt, gstarling, Bravesfan 007, and rajah 424.
Gold in your lockbox much better than Crypto. Gold (silver, copper) is something, even if held as futures contracts. Crypto is just a number that moves. It may turn out that there is no ironclad repository for Bitcoin or Ether.
Gold is an investment to those that purchased it at $400. It's a store of wealth to those that purchased it at $1600. It's neither to those that purchased it at $2000.
Bitcoin was a great investment to those that purchased it at $2. It's a store of wealth to those that purchased it at $14. It's been an even bigger loser than gold for those that purchased it at $30K - 60K.
But for both it's all about when you get, get out and convert it into fiat dollars to purchase most commodities.
When a major government, banks and corporations announce they are switching to Bitcoin I will accept it has arrived. Until then it's a highly volatile, speculative investment.