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Since 2009, we have seen the most money printing and monetary debasement ever engineered by a major central bank that presides over a global reserve currency. Unfortunately over that time period, gold has been a very poor store of value, underperforming tech stocks, trash companies, and trash food companies.

One of the biggest problems is that gold is just not that scarce: there is a lot of it in space and even on earth. If gold inventories increase at just 1.50% per year, then the money supply of gold doubles every 46 years. This makes investing in gold like investing in a leaky boat.

By contrast, Bitcoin has a fixed supply, and is easy to verify, easy to store, and easy to transport across borders.

90% of gold's value comes from its monetary premium, which is rapidly being eroded by Bitcoin.

Shiny yellow rocks are beautiful, but a very poor investment and store of value.

Bitcoin is digital gold for a digital 21st century.

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119 sats \ 4 replies \ @Coinsreporter 14 May 2024

To add some practical insights, people are not as interested in Gold now as they used to be a few years ago. This is a reality. I'm from India and I now see a lot of woman here who are not willing to put a huge necklace or bangles or earrings on or around their bodies.

Take it just as an insight. Gold's value is not generated through any use case, instead it is generated through gold bonds accross the globe.

If you seriously deliberate, gold stands nowhere near to Bitcoin and its use cases.

32 sats \ 1 reply \ @grayruby 14 May 2024

Are Indians becoming more interested in Bitcoin as a wealth preservation substitute?

71 sats \ 0 replies \ @Coinsreporter 14 May 2024

I don't know man! There's a great disparity in knowledge distribution here. Those who understand bitcoin are very few in number. Though the population is very high so it seems like there are many.

11 sats \ 1 reply \ @Undisciplined OP 14 May 2024

He mentions that Indian's aren't as into gold as they used to be. Is that related to the legal change around gold a few years ago?

I don't remember the details, but I remember there was a big change to gold regulation or taxation in India.

52 sats \ 0 replies \ @Coinsreporter 14 May 2024

Yes, now it's more regulated so people don't wanna invest in it as previously. But, yes I'm buying from some local goldsmiths without bill and in cash, albeit in smaller amounts.

69 sats \ 1 reply \ @grayruby 14 May 2024

Gold is not an investment. However, I do think it is still decent insurance to protect you from monetary debasement. The problem is the storage cost, verification costs, fees for buying and selling add up. This is why most people buy paper gold, which is a silly way to do it, gives the government a giant honey pot and huge funds and banks a mechanism to suppress price.

50 sats \ 0 replies \ @Undisciplined OP 14 May 2024

I've rapidly soured on gold, even as inflation insurance. So much of its value is in its monetary premium already and I think there's good evidence that bitcoin is already eating into that.

I'd rather hold silver, which is primarily valued for it's industrial uses, but can gain monetary value during periods of debasement.

I also think the industrial value of both metals will grow over time, but that will only really have an effect on silver's price, since so little of gold's value is industrial.

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