Don't forget that bitcoin has potential also to be worth much much less. The main problem with bitcoin is that Bitcoin has been on a roller-coaster ride, losing more than half its value last year. And bitcoin is not backed by anything more than basic laws of economy and mathematics. That is the reason we now see more altcoins backed by interesting concept - a real life commodity. After all digital currency backed by a physical commodity will be more appealing than volatile bitcoin.
Indeed. I did not mention that, however if gold collapses it will be almost useless. Gold would collapse if we found a replacement for jewelry or something.
On the other hand, if Bitcoin goes down to $1 it is not a problem. Bitcoin will still function (possibly even better than it has) if the price decreases. From a investing perspective Bitcoin is a high risk-high profit investment, and gold is a safer investment with less potential.
First of all, gold would never collapse. It is here with us since dawn of time and it was always precious and always will be desirable. Jewelry is not the only way gold can be used after all we have:
1. Financial Gold: Coinage, Bullion, Backing
2. Uses of Gold in Electronics
3. Use of Gold in Computers
4. Use of Gold in Dentistry
5. Medical Uses of Gold
6. Uses of Gold in Aerospace
7. Uses of Gold Awards and Status Symbols
8. Uses of Gold in Glassmaking
9. Gold Gilding and Gold Leaf
So I can't see a way for gold to ever collapse. But if I think of stability of Bitcoin, in the other hand, and I am not so sure...