Post
Topic
Board Bitcoin Discussion
Re: Why is it that bitcoin not like gold?
by
davis196
on 09/12/2020, 07:01:49 UTC
Bitcoin as being more successful as a gold-like store of value than as a day-to-day currency. Gold is typically assigned some value because of some properties, which are fungibility, authenticity, scarcity, divisibility, durability and transferability. I’m not mentioning its utility for jewellery of electronics because these only account for about $10 of gold’s value.

People value Bitcoin because it supposedly reproduces all of these values, in some cases out-performing gold and in others perhaps not doing as well.

People value Bitcoin,because they have trust in the Bitcoin/blockchain.The same thing can be said about gold.
Trust is the number one factor for creating value.All the features and utilities that you mentioned are helpful for building that trust.
The only difference between Bitcoin and gold is that the Bitcoin price is very volatile,while the gold price is more stable.This is because the gold market has more liquidity and more institutional investors,which are creating that long term stability.