Comparing Bitcoin to gold

It is easy to make the mental jump between Bitcoin and gold. Both have served as attractive ways to squirrel away wealth and to hedge against the volatility of fiat currencies.

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Comparing Bitcoin to gold

It is easy to make the mental jump between Bitcoin and gold. Both have served as attractive ways to squirrel away wealth and to hedge against the volatility of fiat currencies.

 

Bitcoin users also get derided in many of the same ways gold bugs are criticized, as well.

 

Here are a few quotes we have collected that help make this Bitcoin-gold connection.

 

“Bitcoin is similar to gold in that it is a finite resource. This means no one can simply “mint” more coins beyond the predetermined limit.  In the long run, as Bitcoin usage becomes ubiquitous, users of the system should expect their wealth to increase in a relatively stable manner. In the long-run, economies running on Bitcoin are immune to flaws in monetary policies. And commoners would invest their Bitcoin savings more carefully than they would with traditional fiat because their money increases in value over time.”

- Michael Yeung, founder and president of the Simon Fraser Bitcoin Club

 

“I analogize it very much to gold. You've got to physically hold gold. You have to physically hold your private key, which is the same thing as holding gold. It's more of a religion right now than it is anything else. There's … industrial applications for gold, but that doesn't drive the value. It's more perceived value.”

- Mark Cuban

 

“Bitcoin bugs like gold bugs are fanatics who speak of BTC in cult-like religious ways. Like gold bugs, they have paranoid conspiracy views on the $.”

- Nouriel Roubini, economist at New York University

 

“Gold is not failing as a store of value as wood failed as a sources of energy in steam engines. Steam locomotives could go farther and faster on coal. But Bitcoin does not improve upon gold.”

- Jeffrey Currie, Goldman Sachs

 

“Digital currencies are not at present widely used as a medium of exchange. Instead, their popularity largely derives from their ability to serve as an asset class. As such they may have more conceptual similarities to commodities, such as gold, than money.”

- The Bank of England



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