Everyone says bitcoin is "digital gold" but if that were true it should be keeping pace with gold, yet it's going up way faster. Gold is mined every year, yes (2% of the supply?), but this isn't nearly enough to justify the difference. Is it something to do with Metcalfe's Law or the network effect?
>https://en.wikipedia.org/wiki/Metcalfe%27s_law
>Metcalfe's law states that the financial value or influence of a telecommunications network is proportional to the square of the number of connected users of the system (n^2).

>>60660263 (OP)
easier to buy and minimal jew involvement

>>60660263 (OP)
Lower total value. A billion dollars will move Bitcoin a lot more than it'll move gold.

>>60660263 (OP)
halving

>>60660277
interesting thought. this suggests that it would eventually converge to the growth rate of global wealth

Ultimately it is supply and demand that determines the spot price of both gold and btc on any day. If demand at one price is too low relative to supply then the price must fall until a balance is reached, or vice-versa.

Part of the difference in long-run returns comes from the lower market cap of btc and there being less supply injection (slower rate of new coins from mining vs gold mining). However the biggest reason is effectively like a ponzi scheme. New investors joining bitcoin adds new capital which can push the market cap up. Bitcoin started with a very small pool of investors, hence why those early investors saw massive returns as thousands then millions more joined the market. Eventually as time goes on basically everyone who wants bitcoin will have entered the market and I believe price growth will slow. This may be part of why returns seem to be getting smaller with every cycle. But as long as new investors keep piling in every cycle (and at a rate exceeding outflows from previous holders) then the price will keep going up. There is no guarantee it will continue this way forever, but it could the way things are going.

>>60660263 (OP)
this year btc is officially digital gold.
they are both up 27% YTD.

>>60660263 (OP)

It is very simple. Market cap. The MC of gold is $20 trillion dollars. The market cap of bitcoin is just over 2 trillion. It is 10x smaller than gold, so it needs 10x less money to move the price.

>>60660263 (OP)
Theres only one of them the banks are buying right now, thats all you need to know.

>>60660263 (OP)
because bitcoin is gold without the problems that plagued its use throughout history, random supply shock and the fact that it's not used as money today, because of technological limitations involving a third party which always end up being parasites

>>60660296
YES! My nigga! You get it!!!

We are still in the VERY early adoption phase. Think about it, a 21,000,000 capped supply, everyone on the planet using it for internet transactions, let's call it even just one billion people who are actively using internet services. Each person would own about 0.05 BTC. That's where my analysis started back in 2010 when I first heard about it (but had no way of buying it because my savings had gotten wiped out in the 2009 crash).

Change that to 8 billion people using it as a savings vehicle for their entire financial life -- which is what some BTC maxis think will happen, and maybe it will in thirty years or so -- and you get exactly what you wrote. Except that Bitcoin's supply can't be expanded, so its purchasing power will expand and Bitcoin-as-currency will be deflationary at the rate of global economic growth.

See also >>60660634 for my prediction on the near future:
>Reasonable steady-state: at least another 2X or 3X unless a black swan flies in and blows up the global economy like 2020

Also, if the "Bitcoin tracks global liquidity and lags global liquidity by three months" crowd is correct, their chart shows $200K in about another three months, see picrelated.

>>60660263 (OP)
it doesn't
the theoretical price goes up but btc holders prefer the warm fuzzy feeling of being theoretically rich in the future rather than actually being rich right now so they never sell

almost nobody has ever made any money from btc

>>60660263 (OP)
Because one is a volatile, risky speculative investment and the other is a store of value.

Any other explanation is cope.

>>60660263 (OP)
price = demand/supply

Bitcoin has a decreasing supply, gold has an increasing supply

Bitcoin has a higher demand because it's weightless, unstealable magical cross world teleport money, and people are just starting to get the hang of it.

Gold is heavy and costs a lot to move around and the government will tax you up the butt for moving it around.

>>60660319
>However the biggest reason is effectively like a ponzi scheme. New investors joining bitcoin adds new capital which can push the market cap up.
That's known as "market economics". "Ponzi scheme" is specific to a situation where one central party uses newly invested money to pay off old investors while pretending that large returns are being generated, all while skimming most of the money for himself.

Bitcoin has no central party, no one is orchestrating payouts to pretend that returns are exceptionally high. The 2014, 2018, and late 2021 crashes all go to show that it's a market, not a centrally run scam like Ponzi or Madoff ran.

>>60661981
>unstealable
Oof

>>60661986
Government: RELVEAL YOUR CODES TO ME

Person: No lol

>>60661990
>goes to jail
Vs
>buy PMs with cash
>can't be traced digitally
>govt doesn't know you have it
But hey, keep buying your 0's and 1's

>>60661997
Government: REVEAL THE CODES TO ME OR U GO TO JAIL!

Person: I'm sorry I lost them in a tragic boating accident.

>>60661997
Government: I KNOW ITS YOUR ACCOUNT WHY ARE FUNDS MOVING

Person: No it's not mine I gave that wallet away to a backpacker in Zimbabwe

>>60661997
Government: NO UR NOT ALLOWED TO GIVE UR WALLET AWAY

Person: Sorry I dropped it when I was backpacking in Switzerland, someone else must have it, I'm really sooooryyyy

>>60661997
>can't be traced digitally
>but anyone with a metal detector can find your gold bars
this is not the win you think it is

>>60662001
>>60662016
>>60662032
Stay mad, crypto dork.
>>60662050
It's far more difficult than looking up a crypto wallet. Especially since most retail use KYC on/off ramps.

>>60662066
Government: HAHA I CONTROL ALL OF THE MAJOR TRADERS

Person: It's okay I have friends.

Bitcoin is still in the adoption phase, it'll be a lot closer once it hits equal mcap

But also I think several qualities make bitcoin better than gold and warrants a higher mcap. For example its much easier to transfer and it is systemically deflationary while gold still gets small inflation from mines+discovery

>>60662087
>several qualities make bitcoin better than gold
How much gold is used for making computers and mobile devices?

>>60661958

This is the biggest projection I've ever seen

>nooooo I didn't buy bitcoin when it was cheap therefore almost nobody has!!!!

Dumb gorilla nigger. Smart people were buying BTC in the bear market at $15,000 - $25,000. Even smarter people bought before that. Plenty of people made good money on bitcoin, so shut the fuck up and stop projecting just because you didn't buy bitcoin at a good price.

>>60661990
*puts you in cell with rodrigo "thick dick" gonzales*
one day of not getting anally ravaged is 0.05 btc, good deal y/n?

>>60663027
I don't care how many people are theoretically in profit, how many people have actually made decent money from BTC?
I bet it's not many.

>>60662662
Gold is not valued for its marginal industrial applications

>>60661949
>>60660296
This. Gold, the S&P and the money supply are all about 50x up in the last 60 years. It's unreal how similar they all are. All "gains" are just money printing with Gold/S&P being imperfect "sound" proxy money. Here's how it happens:
>people use labor to make more goods
>gov prints more money (steals wealth from fiat holders) so good prices stay even (so they don't decrease/have deflation)
>technological advancement spawns even more goods
>gov prints even more money so prices stay even
>gov prints even more money on top of this for it's "2%" inflation (really inflation is the % the M2 increases)
As you can see, if the money supply were flat, everything would depreciate at EXACTLY the rate of new goods/wealth being added globally.

>>60663990
...so is bitcoin worth buying?

>>60663990
Right, interesting, prices of all the things which go up only go up because money printer go brrr. even gold's supply is increasing 2%/year so its price should be decreasing by that much. The only exception is stock in companies which is capped at 100% of the stock, but most of the price increases of the S&P are again due to money printer. Theoretically even bitcoin shouldn't appreciate, unless perhaps Metcalfe's Law adds another layer of exponential growth on top of the money printer's. That's reasonable, imo, but would not be the case for almost everything else

>>60663990
How much longer can this continue?

>>60664598
to infinity

remember infinity / 21M coins