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Questions and StoriesCategory: QuestionsThe Claim of Bitcoin Being a Digital Gold
19 Answers
Shane Collins answered 2 weeks ago

I personally have not dealt with Bitcoin before but have heard from numerous people that they have made quite a bit of money trading with Botcoin and believe it has the potential to make enough money if you you have the correct mindset and strategy.

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Nnaemeka Victor answered 2 weeks ago

I can’t agree less. Considering it’s worth, it is appropriate to adjudged it a digital gold.

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Nnaemeka Victor answered 2 weeks ago

Also, its unpredictability can be seen in Gold trading.

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Gareth White answered 2 weeks ago

Bitcoin is just different from most other currencies traded in that it is affected by different factors. It doesnt have the same basis of gold and cant be categorised in the same way.

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Kenneth Ogbonnaya answered 2 weeks ago

The claim of bitcoin to be a digital is because of its price movement .

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Jackson Mugarura answered 2 weeks ago

It think it’s not comparable to gold. The value of gold doesn’t is always flactuate frequently.

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Nnaemeka Victor answered 2 weeks ago

What is the relationship between gold and bitcoin?

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Edward Duffy answered 2 weeks ago

I am not sure there is a relationship between gold and bitcoin but the price of bitcoin is now at $US17,662. 
For those of us mining Pi this is great news if Pi could get this high when it goes to market.

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Kenneth Ogbonnaya answered 2 weeks ago

The claim that Bitcoin is a digital Gold is for future, That’s to say that bitcoin is will be recognized and known as a digital asset that even financial sectors will soon invest in it against inflation.

Nnaemeka Victor replied 2 weeks ago

You have just answered your question

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Edgar Raven Malloy answered 2 weeks ago

For all purposes, bitcoin should not be called digital gold, because, in its essence, it has no tangible similarities to gold that would make that claim plain. Bitcoin is a pioneering blockchain technology, born from an important advance in the field of cryptography. As such, its price actually tends to be more correlated with price of tech stocks than with gold. True enough, investors do consider both as a hedge against inflation and weak fiat, but it doesn’t seem they would abandon gold for pursuing bitcoin or other cryptocurrencies, for that matter. The fact is, a wise investor would divide a part of his portfolio to both assets.

Even though we can often hear the word “mining” in bitcoin context, the reality is, it actually implies mathematical calculations done by “mining” hardware, necessary for creating new blocks in the bitcoin’s blockchain and hence it has nothing to do with real, physical mining of gold. Perhaps, the one thing these two processes have in common is that they consume a lot of energy.

If insisted, one might try to compare bitcoin with gold for becoming a money system. Indeed, gold has an entire history of being used as a measure of value and wealth, due to its aesthetically pleasing appearance, but it seems it doesn’t have a potential to become a practical money system. Why? You might ask. Well, the major problem is that physical gold can’t be transacted fast, globally and at any time. Also, it’s not liquid enough for quick consumption of goods, services and other monetary assets. Yet, the shortcomings of gold don’t make bitcoin automatically an ideal money system, because it has its own set of problems. Blockchain technology makes it decentralized, or without clear central authority, but as a money system, it’s rather centralized. Essentially, decentralized money system provides you with private transactions, while the centralized system tracks your transactions by keeping them recorded in a ledger. In simple terms, bitcoin is a public ledger where everyone can see all and each transaction that ever happened. Sure, specific cryptocurrencies are fighting that problem, but they are not bitcoin. Furthermore, in a truly decentralized system money spreads among people, yet your bitcoins never actually leave the ledger, despite the fact that you, reportedly, own them. It also seems to be true for all cryptocurrencies. From this point of view, gold is a more decentralized money system than bitcoin and other cryptos.

Bitcoin’s similarities with gold have never been anything more than imaginary, so it’s rather misplaced to call it digital gold. If any, cryptocurrencies that are actually pegged to price of gold are more deserving of the title.

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Nnaemeka Victor replied 2 weeks ago

Wow, another long write-up. You gave a very detailed response.

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Kenneth Ogbonnaya answered 2 weeks ago

Bitcoin is a digital Gold because people are using it as a digital asset hold against inflationary fiats currency.

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Ahmad Khasan answered 2 weeks ago

I used to think bitcoin as the gold-equivalent in the digital world. However, Edgar’s answer above might prove my perspective wrong. It seems that Bitcoin primary function is to provide a secure, impossible to trace network for those who do not want their transaction to be checked by authority.

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Leno Jean Pierre answered 2 weeks ago

I think we are comparing bitcoin to gold due to higher value than any other cryptocurrencies.the value of bitcoin is raising every day, and no other crypto will have the value than bitcoin.

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Kenneth Ogbonnaya answered 2 weeks ago

Bitcoin is getting recognition like Gold. Gold is a scarce product, likewise, Bitcoin, it will be very scarce the total coins of bitcoin is reached.

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Kenneth Ogbonnaya answered 2 weeks ago

The claim is base on speculation that soon people will be investing in bitcoin against inflation like they do in Gold.

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Leno Jean Pierre answered 2 weeks ago

Its sounds good for those who are bitcoins investers, it will have be profitable for them. Now it is too late for those who want to invest in bitcoin, the value is getting higher and higher, it requires lot of money to afford one bitcoin currently

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David Matlala answered 2 weeks ago

Bitcoin and gold have similar characteristics.
The can both be used as payment.
Their value does not degrade with time. 
Their supply is limited. 
They can’t be made by counterfeit means.

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Kenneth Ogbonnaya answered 2 weeks ago

It is still a claim not fact, However, I know that the day Bitcoin will be widely adopted like Gold is almost at hand.

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Kenneth Ogbonnaya answered 2 weeks ago

The claim was on speculation that Bitcoin will be widely adopted as a digital asset against inflation. When financial institutions and government of countries started hedging their tressury in Bitcoin, then, the claim will be a reality.

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