Quote from: Poker Player on Today at 03:47:52 AM

Quote from: WeThePe0ple on April 17, 2023, 07:42:11 PM

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?

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.

I'd say that the gold used for jewelries and industries should be considered as altgolds like in bitcoin, as they can be resold at a cheaper rate, cheaper than the actual price of gold, in exchange of goods or money by the owner of the jewelry. However, it's almost impossible for bitcoin to absorb all the market cap of gold as gold is scarce and on demand too, almost similar qualities as bitcoin. Hence, the world can't move completely digital, we'll all need the physical treasures to show off or run transactions. Even, many people will run to utilize gold than bitcoin for top confidential transactions, as everything digital cannot be considered a secret.