Is Bitcoin a better investment than Gold?

GarrettKimmel

GarrettKimmel

Found a couple of articles backing the idea of investing in bitcoins rather than gold.

Well, IMO neither Gold nor Bitcoin are a sound investment.

Gold is, at best, a hedge against fiat inflation. However, there are major problems because there's a lot of collusion and control over the price of gold, so its value isn't really equal to its worth. That said, I like gold over dollars (as a wealth storage medium), but I can't spend it, so it's not really "useful."

Bitcoin is ... interesting. I really like the bitcoin/blockchain technology. I've done research and posited methods for using the blockchain (and thus bitcoin; they're inseparable) for everything from selling art to holding fraud-free public elections. As a wealth-store, it's still pretty volatile, though about on par with other small currencies, and has been leveling out over the past few years. As a currency, it's far more usable than gold, and in many cases more useful than dollars. (When's the last time you spent dollars at Amazon? Likely you spent credit or gift-credit.)

So, both gold and bitcoin have their strengths and weaknesses, and each is good for something the other is not. Though my portfolio includes both (about 5% of each), I don't think either is, as yet, a good "investment."

What are your thoughts?
 
It is as always, about timing. If you bought BTC in the ranging phase of $240, I tip my fedora for you. If you are buying now, you have massive balls...
 
GarrettKimmel said:
Gold is, at best, a hedge against fiat inflation. However, there are major problems because there's a lot of collusion and control over the price of gold, so its value isn't really equal to its worth. That said, I like gold over dollars (as a wealth storage medium), but I can't spend it, so it's not really "useful."
More...

Look at BitGold. You can use your account to purchase things using your gold. Unfortunately, the transaction fee is 1% both ways. However, they eat the storage fees so if you are a long-term investor and you don't want to store your physical around the house, it seems pretty ideal. Plus you get a choice of where you store the gold in the world. Combine that with the fact you can charge purchases on your credit card, then you can recoup that 1% fee on the way in with the right credit card.

BitCoin is going much higher or it is going to $0. Call option.
 
When the price on anything shoots up suddenly people are asking if they should be in it but they're almost always too late.
As pekelo points out you needed to be buying back when nobody was talking about it. Clearly a bunch of Chinese buyers were aware of BTC and were ready to buy at the first opportunity.

With regard to gold, obviously it's a horrible investment since its value against the USD hasn't gone anywhere in years. If gold were a company would you buy it? Of course not. It has no earnings or fundamentals and pays no dividends.

Having a little physical gold tucked away in a safe makes sense as an emergency hedge but that's all.
 
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What I like about BTC versus gold is that the market cap of BTC is way smaller, so the same investment in $$ is going to get you a larger piece of the BTC market than you would get if you put the same amount in gold. I can't remember the exact numbers off the top of my head, but the market cap of BTC is about $7 billion and the market cap of gold is up there around $7 trillion.
 
Well, the maximum number of BTC is 21 million but the $ based market cap is almost meaningless since it's truly intangible. At least you can physically hold gold.
Still it's an interesting point that owning just 1 BTC gives you a measurable piece of the pie.
 
stevegee58 said:
Well, the maximum number of BTC is 21 million but the $ based market cap is almost meaningless since it's truly intangible. At least you can physically hold gold.
Still it's an interesting point that owning just 1 BTC gives you a measurable piece of the pie.
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It's tangible in a way since it has to be mined.
 
Yes, no question about it.

Gold is history. Its a relic of the past. BTC is the future. Make your choice.

surf
 
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marketsurfer said:
Yes, no question about it.

Gold is history. Its a relic of the past. BTC is the future. Make your choice.

surf
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yeah, but on the other hand, bitcoin relies on the Internet to be functional, and if you are somehow severed from the power grid or the online community, your bitcoins will be worthless, even if you store them in physical form.
 
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