Bitcoin vs. Gold — The Ultimate Guide

Money Talks 6

Similarity: Like Gold, Bitcoin Is A Scarce Resource

One of the more obvious similarities between gold and Bitcoin is that they are both fixed in their total amount, though not in precisely the same manner. While the amount of gold in circulation grows each time more is mined, it does not grow in any way that materially impacts the price of the asset, as other factors pertaining to gold (a crash in the stock market, for example) could.

Difference: Bitcoin Is Readily Exchangeable For Goods, Services, And Cash

One gripe with Bitcoin, especially by those who have not truly attempted to use Bitcoin as a means of exchange, is that it is simply not as real-world-ready as the U.S. dollar in its many forms. For example, your local gas station is probably not ready to accept your Bitcoin in exchange for petrol. And while these statements may be largely true as of now, it is not crazy to envision a day when most card readers and online merchants accept Bitcoin debit cards. It is not a pipe dream to think that Bitcoin could be as readily-usable as a means of exchange as the U.S. dollar.

Gold and Bitcoin Are Alike, Yet Critically Different

Gold and Bitcoin both fluctuate in value. They are both intrinsically valuable, gold because of its physical properties, Bitcoin because of the nodes/users backing it). They can both be traded for paper currency, and their scarcity gives each a measure of intrinsic value that fiat currency — U.S. dollars, Euros, and virtually every other national currency used today — does not have. In these ways, Bitcoin and gold are similar.

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