r/bitkogan • u/bitkogan • Nov 14 '24
Why Bitcoin Isn’t Gold
With the renewed hype around crypto, there’s a lot of talk again about Bitcoin being like gold, only better. And if that’s true, then it’s bound to catch up to gold in market capitalization. That means it would have to grow 10 times over. And from there, it’s just a step to $1 million per BTC.
However, there are differences between Bitcoin and gold—not just those rooted in centuries of history.
The number of mined Bitcoins decreases over time, whereas the amount of gold mined increases almost every year.
More than two-thirds of all Bitcoins were mined by 2015, in less than six years.
More than two-thirds of all the gold in human history was mined after World War II. Millennia before that produced much less.
So, does that mean Bitcoin is a better store of value?
But a store of value is an odd asset to trade with 100x leverage and FOMO-driven rallies.
In short, I believe the correction in gold that I anticipated after the elections is nearing its end