The volatility of Bitcoin was mostly driven by the predominance of Bitcoin exchanging being done P2P. Gold would be just as volatile in a situation which there’s been no evidence of value. In 1200 BC gold wouldn’t be more valuable than a bison pelt; because that pelt was needed to make clothing; clothing was needed to survive the winter.
With the large ETFs, the sailor guy, and governments now on their way to holding the majority share of Bitcoin, the price of the coin will stabilize and the market fluctuations? You could kiss those goodbye; once enough of the supply is controlled by entities like corporations, governments, ETFs, and Trusts the only way you’d see Bitcoin hit zero is if everyone collectively decided Bitcoin has no value; but, to assume that Bitcoin would simply have no value would be ignoring the $73k value per coin (at the time of writing). Bitcoin is more valuable than a Troy ounce. Bitcoin and gold both have perceived value and if everyone decided gold was no longer valuable, it’s value would not increase each year — it would just tank until it just became some cheap metal like copper.
The reason gold is used as a hedge during inflationary periods and as a store of wealth is because there is a collective agreement about its value; and because it could still be used in commerce should a fiat collapse.
Now, why is Bitcoin even relevant? Why is it even worth so much? It’s fucking stupid, right? Wrong.
Bitcoin offers you the same convenience of gold in the event of an economic collapse or fiat devaluation. Bitcoin can be converted into any fiat currency and any digital currency; and can be directly used in international commerce. Bitcoin can be reduced down an amount small enough to ensure that goods are exchanged at a fair value; it’s harder to do this with gold; even if you grind gold to a dust, you’d lose some of the dust and the trade for goods loses some of its fair value; also, it’s inconvenient to trade with 10 gold bricks than it is with 10 Bitcoin.
Gold is not safe anymore with Bitcoin present. Bitcoin offers more utility, asset safety features, and is easier to protect than a bar of gold. Bitcoin is future proof. Gold was good while it lasted and served it’s purpose but now Bitcoin fills that purpose and does a better job. Innovation sometimes happens in the most unlikely of places. Rockefeller thought people would forever use kerosene lamps— if I’m not mistaken.
As we progress as a civilization so does how we store value in modernized economical societies. Eventually the government won’t even print money, they’ll be producing their own digital currency which is already in the works. Gold is surging but it’s officially going to hit its peak before it begins to decline as Bitcoin takes its’ place.
The digital world we live in is moving faster each day. Gold had been a safe haven for years but Bitcoin is taking its place and it will continue to do so. Things change. The world progresses. We move forward. The only constant is change; the only thing that’s inevitable is change. Bitcoin is the future, whether people like it or not. You can either try to catch it early or miss it, while fighting it.
People have been fighting Bitcoin for years; since pre $5 per coin. It’s now at $73k a coin; that’s cheap for the new worlds value store — digital gold. Will there be technology better than Bitcoin, absolutely — but, the new technology will probably just be silver, platinum, or palladium in comparison.
Gold can’t do what Bitcoin can. If I had a Billion dollars in gold, I’d put it into Bitcoin once it’s stabilized. I’d never have to worry about storage, protection, minting, smelting, theft (to some degree), I have full custody and control and have 100% liquidity, can engage in international commerce, it appreciates in value, etc. holding gold when I could hold Bitcoin is dumb. I’d feel like the person trying to sell me gold was a con-man, trying to swindle me out of my money as if he was the Robinhood investing app — knowing the truth about Bitcoin is why people are snapping it up at any price. It’s undervalued.
It probably sucks to be England with all that gold… :(
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