So in terms of value 1 BTC is worth 10kgs of gold. But given that 10kgs of gold costs 650 000 dollars today and 1 BTC costs 30 000, BTC must be undervalued and still has a potential to 20x from here. So why would people buy gold as a hedge against inflation, when they can buy BTC that is undervalued by a factor of at least 20? I guess the answer lies in confidence and previous experience.
Is any of the above wrong?
This idea was popularized by Michael Saylor and many people have believed it, although I think he takes it too far by saying that the Bitcoin is going to absorb all the market cap not only of gold but also of investment art and Real Estate, and I think it is too maximalist.
In the case of gold, it seems quite plausible to me that the Bitcoin, being a kind of gold 2.0, a better digital gold, will absorb much of the market cap of gold, but will it absorb it all? I don't think so. You have to think that gold is used for jewelry and in industry, and you can't put satoshis to make a ring or electronic devices. This is why I see a better future for gold relative to bitcoin than paper maps vs. google maps.
Regarding the previous discussion on inflation, I think it is clear that calculations are made on the basis of how things are now, and in any case inflation will be factored into the future. That is, if the market cap of gold is $13T and that of Bitcoin $0.5T the more maximalist think that the future will be of say $1T for gold and $12.5 for Bitcoin, but that in today's terms, in today's purchasing power. In the future inflation will have to be calculated and the total numbers will be higher.