Why I think Bitcoin is a better investment than Gold

The future

We all invest for a better future, and much of that better future involves preserving future buying power of a currency designed to lose buying power through investment in true assets, those things which appreciate in value.

Speculation

Many investors came to crypto for many reasons, but the promise of finding “That Coin” which would 100x or 1000x and provide life changing money is a big driver in this space

Bitcoin as an asset

Although it was a varied bunch, I think many saw Bitcoin as a deflationary, store of value. I believe that while Bitcoin is still being mined, they mine less each year and will eventually stop mining it, so it has programmed scarcity, which I believe market forces transform into increased value.

and I say non-performing, as in no dividends or income, just appreciation and a remarkable store of value.

non-performing asset, it was, as

Gold and Bitcoin are both assets

I see both as assets, or stores of value or hedges against inflation. But gold’s value is driven by inflation and the dollar’s loss in value. But I see bitcoins value is driven by both the dollars inflation and bitcoins deflation. I think this difference is due to scarcity.

Gold and Bitcoin have different scarcity.

While both are assets or stores of value their scarcity index is different. Gold is mined continuously and the supply is large and growing. Bitcoin is mined less and less and the supply is finite. I believe this finite supply or scarcity is a market factor which drives Bitcoin value upwards, and is a factor which may allow bitcoin to be valued over gold. I also think golds value is external, tied to the dollar, but as its supply increases it has no scarcity driving its intrinsic value.

Gold and Bitcoin supply differences mean more intrinsic value for Bitcoin.

I personally believe that while both are stores of value against the ravages of inflation on the value of currency. Bitcoin is designed to be deflationary, as it is created in smaller amounts each year, thus being worth more intrinsically as scarcity and demand drive value upwards. drives demand. Gold is not scarce by comparison, and lacks this intrinsic driver of value.

Gold and Bitcoin were both non-performing assets, until DeFi was created.

I believe both were a ssets in terms of increasing in value in dollar or currency terms. But both are non-performing, as in neither produces income, as in interest or dividends, until now. Bitcoin can be used in DeFi to generate income or profits without selling it.

Bitcoin will surpass gold

I think Bitcoin will surpass Gold in value, primarily because Bitcoin value is both intrinsically driven by scarcity, and externally driven by inflation versus Golds value being driven by extrinsic factor of inflation and minimal intrinsic value due to lack of scarcity. And Bitcoin has become a true performing asset increasing in value through appreciation, but also producing income through DeFi, while Gold appreciates, but it’s income producing capability is non-existent or returns are to small to make it important.

Thus I believe Bitcoins value will surpass Gold for sound technical reasons of value.

@shortsegments