Post
Topic
Board Economics
Re: Bitcoin or Gold
by
Iranus
on 10/08/2024, 14:21:01 UTC
~snip
I am with you halfway, and as things unfold between Bitcoin and Gold, I think it's no longer appropriate to be using some certainty remarks because no one knows what will happen. In the next 10 years, what if Bitcoin is still at $65,000, what would you do? I think it's time we accept the reality of the crypto market. Now that Bitcoin is in the mainstream of the financial market where institutions have a sizable holding, it will behave more like a sane market unlike the old times when it could be moving more than 20 times in just 2 years, those movements are crazy, they are no more feasible.

In terms of returns: gold is thousands of years old and it took hundreds of years to reach the level of stability it has today. Meanwhile, bitcoin is only 15 years old and adoption has yet to take place worldwide so it is too early to say that it will enter a period of gold-like stability. Not to mention, look at gold's capitalization of more than 16 trillion while bitcoin is just over 1 trillion, it is still too small or nothing compared to gold. That would make it considered a higher-risk asset, but its youth and smallness also give it room to grow stronger.

Bitcoin is not yet the main trend of the financial market, how can an asset with a small capitalization and not yet adopted worldwide become the main trend of the world financial market?