Bitcoin vs. Gold: Which is Best? The Ultimate Showdown!!

Bitcoin or gold this question has been Top of mind for many investors for a Long long time and we've seen them move Hundreds of billions of dollars between These two assets as they struggle to Find the answer on the one hand gold is Tried and true it is a proven way to Store value on the other hand Bitcoin is New it is digital gold which many Believe is destined to become bigger Than the analog version So today we're going to compare Bitcoin And gold to determine once and for all Which wins out as the world's best store Of value this is a video you cannot miss Let's start with everyone's favorite Metric price Now gold's price history likely begins With human civilization itself it's been Considered valuable for over 6 000 years As a fun fact the oldest gold artifact Was found in Bulgaria in 2016. it's a Gold bead which dates as far back as 4500 BC over six and a half thousand Years ago now unfortunately gold's price At that time is unknown this is true for Most of the BC period until about 550 BC When gold first started being used as Money in modern day Turkey even then the Record of Gold's value wasn't clear Until good old England started using it As money in the 13th century according To the balance gold's price per ounce in 1247 was around 90 Pence which are like

Cents to US dollars but for British Pounds if you do the maths that works Out to around an 1800x return from Gold's initial price to its recent All-time high of over 1600 pounds which Is just under 2100 USD Now as for Bitcoin its value was Technically zero when the first BTC Coins were mined in January 2009. According to investing.com btc's Earliest recorded price in trading was Nine cents in July 2010. that works out To a 760 000 X return from btc's initial Price to its recent all-time high of 69k This likely makes bitcoin's BTC the best Performing asset of all time but there Are a couple of caveats first btc's Price action has been extremely volatile And it's possible it holds the title of All-time most volatile as well This is called btc's store a valley role Into question but I'll come back to that Later the second caveat is that BTC is Brand new relative to Gold take a second To consider that gold has outlasted Every other asset and currency that has Ever existed even though gold's price Hasn't performed as well as btc's its Track records suggest that it will Continue to exist long after Bitcoin is Gone nobody knows when that will be but Some believe Bitcoin will collapse when The final BTC is mined around 100 years From now you can learn more about that

Using the link in the description Now the second metric is economics Supply and demand starting with Bitcoin BTC Supply is programmatically fixed There will only ever be 21 million BTC Btc's Supply schedule is predetermined New coins are created every 10 minutes Every four years the number of BTC Created with each new block is cut in Half according to wubal btc's annual Inflation rate is currently around 1.7 Percent logically btc's annual inflation Rate will be cut in half after the next Bitcoin halving which is expected to Occur in April 2024. note that this Inflation rate does not factor in all The BTC that's been lost or will be lost In the future more about lost BTC and How to recover lost crypto using the Link in the description moving on Now when it comes to BTC demand there Are many ways to measure it one way is The number of Bitcoin wallets that hold An amount of BTC greater than zero According to Glass node there are over 45 million non-zero Bitcoin wallet Addresses an increase of 45x over the Last decade a figure that keeps on Rising Now as for gold its exact Supply is Unknown the world gold Council estimates That around 210 000 tons of gold are Above ground and around 60 000 tons of Gold are yet to be mined between two

Thousand and three thousand tons of gold Are mined each year creating an annual Inflation rate of one to two percent Last year was closer to two percent When it comes to Gold demand there are Also many ways to measure it average Gold demand is around 3 000 tons per Year last year this figure spiked to an 11-year high of over 4 100 tons mainly Due to record gold buying by central Banks now it's not known what percentage Of the global population owns gold However it's safe to assume that almost Everyone on the planet understands Gold's value this is evident in the fact That gold jewelry is common in almost Every country by contrast only a small Percentage of people understand btc's Value This means that BTC has more room to Grow on the demand side and this ties Into the third metric and that's utility Besides being a store of value and Historically being used as currency Goals primary use case is jewelry According to statista over half of gold Demand in 2021 came from jewelry other Sources suggest this could account for As much as 80 of Gold's demand Gold is also used in manufacturing Particularly the manufacturing of Electronics medical equipment and Medicines and even spaceship parts Statista estimates that around 10

Percent of Gold's demand comes from Manufacturing and many have argued that This will increase due to Green energy Demand Now believe it or not but Bitcoin could Also play a role in the development of Green energy that's because Bitcoin Mining can be used to subsidize Renewable energy projects that would Otherwise be uneconomical this topic is Outside the scope of this video but I Strongly suggest reading up on it Now in terms of the utility of BTC Itself its primary use case is sending Digital payments to whoever you want Whenever you want this sounds so simple That it's almost stupid but it's a Powerful value proposition that will Become more valuable as governments seek To control more regular transactions BTC also allows you to hold your wealth Outside of the financial system in a Digital way this is also a powerful Value proposition because all you need To protect your wealth with BTC is to Remember the seed phrase to your Bitcoin Wallet with that information memorized Nobody can ever take your assets and if You happen to be looking for a secure Bitcoin wallet you can check out the Link in the description for a big Discount I digress And to be fair gold also makes it Possible to hold your wealth outside of

The financial system the difference is That this is done in an analog way this Means that it's harder to store and to Move and easier for authorities to Confiscate this happened in 1933 in the United States with executive order 6012 This relates to the fourth metric and That's regulation With the exception of executive order 6012 it has apparently never been Illegal to own gold in any country in Modern history this is probably because It's an impractical policy that can't be Enforced executive order 6012 was Eventually repealed in 1971. Today there would be no real basis for Banning gold because it's not exactly Seen as something that would be used in Lieu of a fiat currency nor would it be An ideal substitute in today's digitized World it's easy to forget that the US Gold ban came at a time when National Currencies were still backed by the Metal conversely it would be relatively Easy to use BTC in lieu of a fiat Currency this is likely why Bitcoin Faces significantly more regulatory Uncertainty including a very real Confiscation risk ironically enough the Only thing protecting Bitcoin from a Full Crackdown is the fact that BTC is Too volatile to replace Fiat the fact That BTC has been used for illicit Activity in the past and is reportedly

Being used by sanction States for International trade also doesn't help Its regulatory standing if btc's use in International trade becomes more common And its volatility decreases it could Easily see an executive order of its own In the interim Regulators around the World will likely introduce ever more Stringent regulations around the buying And selling of BTC if you've watched any Of our videos about the financial action Task force or fat F their end game is to Eliminate all non-intermediated Activities on the grounds that they are High risk gold on the other hand is not Facing this kind of scrutiny you don't Need kyc to buy or sell gold more Importantly it's very hard and in some Cases impossible to track physical gold Transactions with Bitcoin every BTC Transaction can be tracked and this Makes it easy for governments to Restrict bitcoin's use in unprecedented Ways This pertains to the fifth metric and That's security Bitcoin security depends On how many computers are connected to The network or rather how much computing Power they are contributing the higher The computing power the higher the Security Bitcoin is the most secure Payment Network in the world Bitcoin is Also decentralized meaning that this Computing power is coming from many

Different computers in many different Countries according to bit nodes there Are over 47 000 Bitcoin nodes around the World but I should note that while all Miners are nodes not all nodes are Miners Regardless each node contains a full History of every BTC transaction ever Made this means that if there were ever A crisis that impacted most of the Planet such as that Global Cyber attack The world economic Forum keeps talking About Bitcoin would continue to function All it would take is one node This is in stark contrast to gold which Is much less secure and much less Decentralized for starters the flow of Gold relies on physical Supply chains That can be easily disrupted this can Make it harder to buy and sell large Amounts of gold It can also lead to discrepancies in the Price of gold between regions it's also Difficult for the average person to Verify whether the gold they have is Real there have been many cases of fake Gold being peddled to unwary investors Sometimes it looks so real that even Experts can't tell the difference this Is why many gold buyers stick to branded Gold such as golden eagles which are Legal tender in the United States FYI This branding results in the same gold Being priced differently since some

Mints are more highly regarded than Others that said at its core gold is Truly fungible this is in stark contrast To bitcoin where every BTC has its own Unique transaction history this could Someday result in different prices for Different coins Now the last metric to consider is Popularity or rather the conditions Under which each asset is considered Attractive by the average investor Beginning with Bitcoin BTC is popular Anytime there is an increase in Liquidity aka the money supply this is Because btc's price tends to go up when This happens btc's sensitivity to Liquidity is why it's still a store of Value despite its volatility but don't Take my word for it According to Wikipedia a store of value Is quote any commodity or asset that Would normally retain purchasing power Into the future Btc's longer term price action is in Line with this definition however the Same cannot be said for btc's shorter Term price action in the short term BTC Tends to trade in line with risk assets Namely technology stocks even so btc's Strong correlation to stocks may not be Permanent it's possible this correlation Will weaken once central banks begin Buying BTC in 2025 more about that in The description

Now like BTC gold tends to become Popular when there is an increase in Liquidity this is fundamentally because Both assets have a fixed Supply compared To Fiat currencies unlike BTC however Gold also tends to become popular when There is significant political and Economic uncertainty obviously there's Been no shortage of political and Economic uncertainty in recent years This is why Google searches for how to Buy gold recently hit a record high Given that we're in the middle of a de Facto cold war between the U.S and China Interest in Gold will likely continue to Rise in the coming years at the same Time risk assets will suffer due to this Uncertainty and this could affect BTC Then again BTC could decouple from other Risk assets when everyone realizes that It is the only truly neutral digital Currency in existence it could therefore Become popular during times of Uncertainty just like gold So this brings me to the big question Gold or Bitcoin let's take it from the Top price action btc's price action is Unparalleled but gold's price action is Permanent so to speak which one wins on This metric depends on whether your Primary goal is to make mad gains while You're alive or to accumulate an asset That will last forever when you die in Theory the best strategy would be to

Make mad gains in BTC and accumulate Gold in practice however it's next to Impossible to time the market especially For an asset as volatile as Bitcoin There's also no guarantee that gold will Be an adequate store of value as Technology continues to advance this is A reference to the fact that gold Supply Is not programmatically fixed like btcs Sure we know there is a limited supply Of gold on Earth but there is a Virtually Unlimited Supply of gold in Space if your investment time frame for Gold is many decades these new sources Of Supply will likely be tapped Not only that but Bitcoin has a lot more Room to grow on the demand side as I Mentioned earlier almost everyone alive Knows that gold has value but only a Small percentage are aware that BTC has Value this percentage will grow as btc's Supply decreases continuing the price Action we've seen so far however this Assumes that the average person will see The value of having uncensorable Payments and self-sovereign money this Value proposition may never become Relevant if governments fail in rolling Out their Central Bank digital Currencies or cbdcs which is very Possible given that nobody wants them More about cbdc's in the description Meanwhile the demand for gold will Continue to rise as its utility in Next

Generation Technologies increases Governments have been pouring trillions Into developing microchips and renewable Energy solutions AI is also just Starting to take off gold demand in Manufacturing could soar exponentially If that happens though there could very Well be a Resurgence in restrictive Regulations around gold as governments Scramble to secure the supplies they Need for their ambitious development Initiatives if their cbdcs get off the Ground they will need a neutral currency For all the related trade such as BTC The moment BTC starts being used for Trade it will be in the interests of Governments to ensure that the Bitcoin Network remains as neutral as possible They would start aggressively mining Bitcoin to ensure their transactions Always go through their use and Accumulation of gold would full by the Wayside That is of course until there is an Unprecedented Cyber attack of some kind One that's large enough to disrupt the Bitcoin blockchain in that case the Instincts of governments will be to Ditch the digital and go analog citizens Will likewise scramble to accumulate Gold realizing that it's the only store Of value immune to such shocks what's Funny is that if this crazy scenario Plays out these folks from the future

Could find themselves asking the same Question Bitcoin or gold by then they'll Know that BTC has value and that it's Here to stay but they would question its Ability to preserve their wealth when The entire system goes down and therein Lies the answer if you think that There's a chance that the entire system Will go down someday then you're better Off stacking physical gold if you think That there's a chance that even a small Part of the system will stay online when A crisis comes well then you're better Off stacking digital SATs so as a famous Taco commercial once said why not both [Music] Lost and that's all for today's video If You learned something new let me know by Smashing that like button if you want to Keep on learning subscribe to the Channel and ping that notification Bell Better yet share the video with your Friends and family so they can get up to Speed as well and if you happen to be on The BTC side of the debate well be sure To check out the coin Bureau deals page It's got massive discounts on crypto Hardware and thousands of dollars of Trading incentives on the top Cryptocurrency exchanges the link will Be down in the description thank you all So much for watching and I'll see you Next time Foreign

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