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Bitcoin Vs Gold - The Infographic

Tyler Durden's picture




 

While Marc Faber has said "I will never sell my gold," he also noted "I like the idea of Bitcoin," and the battle between the 'alternative currencies' continues. The following infographic provides a succinct illustration of the similarities and differences between gold and bitcoin.

 

Please include attribution to www.jmbullion.com with this graphic.

Bitcoin vs. Gold

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Fri, 06/27/2014 - 19:21 | 4904250 Duc888
Duc888's picture

 

 

 

it's all fun and games until it's been hacked.

 

In the same vein, metals can be taxed too.

Fri, 06/27/2014 - 19:21 | 4904251 gh0atrider
gh0atrider's picture

NNNEVC

         CARN BITCOIN BE H@cKED!!

Fri, 06/27/2014 - 19:25 | 4904255 StacksOnStacks
StacksOnStacks's picture

I liked Bitcoin back before these shit-shows like Maxcoin and Dogecoin popped up, then there was a site that will create your coin for you.  No, no, no, no, this isn't right.  I can't just make Gold and Silver appear.  I'll stick with my Ag and Au as well as some Cu every now and then in the form of Pennies.

 

ps. I'll take Tier 2 over Tier 3 anyday!

Fri, 06/27/2014 - 19:26 | 4904262 gh0atrider
gh0atrider's picture

Bitcoin is the crypto-currency.  These usurpers are nothing.

Fri, 06/27/2014 - 19:32 | 4904274 StacksOnStacks
StacksOnStacks's picture

What about Quark?  Quark transactions are a fraction of the time that Bitcoin is.  http://www.quarkcoins.com/bitcoin-vs-quarkcoin.html

 

I'll pass.

 

ps.  I know my shit.

Fri, 06/27/2014 - 19:38 | 4904298 gh0atrider
gh0atrider's picture

Quark ain't got nothin'

And gh0atrider knows his shit too 'cos his hooves deep in it.

Fri, 06/27/2014 - 19:40 | 4904306 Publicus
Publicus's picture

Bitcoin and relatives are the new currencies of the future.

Fri, 06/27/2014 - 20:04 | 4904365 Anusocracy
Anusocracy's picture

Bitcoin is part of the plan to get rid of tangible money.

Fri, 06/27/2014 - 20:06 | 4904375 COSMOS
COSMOS's picture

BitCRAP doesn't shine in the moonlight when the power goes out or a hacker empties out your account while they are half the world away and you cant pick them off with your rifle.

Please lets stop this bitcoin debate because its rather lame.

Fri, 06/27/2014 - 22:19 | 4904638 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

The fallacy is that one alternative currency is better than the other. Cryptos and PMs both have different strengths and weaknesses and anyone who's an adult can see that.

Fri, 06/27/2014 - 23:06 | 4904723 DirtyWilly
DirtyWilly's picture

Thank you Tyler's for finally publishing something on a more neutral plane about Bitcoin.  Any step towards liberty is the right step.

Sat, 06/28/2014 - 06:16 | 4905055 Zeroexperience2010
Zeroexperience2010's picture

There is one very important point that has been forgotten: Gold is trully anonymous, bitcoin is not and keeps a trace of all transactions.

Sat, 06/28/2014 - 07:47 | 4905111 Took Red Pill
Took Red Pill's picture

I think our gov't knows who's stackin'

Sat, 06/28/2014 - 08:32 | 4905146 RaceToTheBottom
RaceToTheBottom's picture

I think claims of boating accidents will not work with the man.....

Sat, 06/28/2014 - 10:54 | 4905273 shitco.in
shitco.in's picture

I lost my private keys in a boating accident recently.  

Boats + Paper Wallets = Bad

Sat, 06/28/2014 - 10:03 | 4905207 soontobeblocked
soontobeblocked's picture

"The fallacy is that one alternative currency is better than the other. Cryptos and PMs both have different strengths and weaknesses and anyone who's an adult can see that."

Spot on. 

Additionally, for the author to conflate gold with Btc as currencies demonstrates either ignorance or mendacity.

Most "stackers" do not trade it; they view it as a store of wealth.  I can't purchase a "pizza" over the Internet using gold. 

Having said that, for most of its existence, the majority of Btc have not changed hands.  The statistic "number of bitcoin days destroyed" has made that clear since Day 1.  Few, however, tout it as a store of wealth.  Instead they tout it as an inexpensive facilitator of transactions.  (Perhaps those long-term holders are the pumpers who want everyone else to routinely transact in it in order to increase the value of their own holdings.  That makes them mendacious.  I don't see the same from gold pumpers).

Sat, 06/28/2014 - 14:37 | 4905595 koncaswatch
koncaswatch's picture

+100 You nailed it; both gold and Btc comments are dead on. I'm a stacker. I could be a Btc trader one day, just not today. I think Btc is a trial ballon for a future paperless fiat with infinite traceability.

Sat, 06/28/2014 - 10:23 | 4905232 TuPhat
TuPhat's picture

Gold is not actually currency.  It's value is intrinsic.  It can be worth a lot or it can be worth nothing but it isn't currency.

Sat, 06/28/2014 - 14:45 | 4905603 koncaswatch
koncaswatch's picture

Technically gold, silver and copper are currencies. It's just that coin is not now going to trade at the fiat of the realm face value; unless of course, one is desparate or a fool.

Nothing has an intrinsic monetary value. We that stack PMs are speculating that they will hold a value in the future but have no idea what that value will be. The value of gold is established on the day of the trade. All else is speculation.

Sat, 06/28/2014 - 10:09 | 4905195 soontobeblocked
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"Bitcoin is the crypto-currency. These usurpers are nothing"

Please recall the threads earlier this year in which you said that you were out of Btc and that Ltc was the way to go. 

For reference, those were often the same threads in which you claimed to have put your family into Btc at the peak while at the same time buying into Ltc yourself.  I didn't believe you, and presumed that you were blustering (again) and claiming that you weren't suffering from the plummet in value. 

You said then that Ltc was the way to go.

How can you retain credibility while having posted (and still posting) so much faith-based bullshit regarding Btc and Satoshi and using hundreds of analogies to religious belief and to faith-based organizations...and now call the others 'usurpers' (while those others include the smae Ltc that you were once touting).

That this thread has so few comments is a reassuring testament that the Beanie Baby fad is coming to a close; the efforts of shameless pumpers notwithstanding.  Maybe then it will fall back into the dustbin and be relegated to its proper use.  It will also find more effective and efficient cc's passing it by, and when that happens I will be gleeful to see all shameless pumpers lose their shirts and jump out of their virtual windows.

Schadenfreud and Justice often travel in the same vehicle.

 

Fri, 06/27/2014 - 19:50 | 4904334 TVP
TVP's picture

One cannot just "make" cryptocurrencies appear, either.

They have to be "mined" from solving complex computer algorithms using high-end graphics cards or ASICs.  

Crypto is finite (with the exception of infinitecoin, another worthless altcoin), and therefore non-inflationary.  

 

Sat, 06/28/2014 - 18:31 | 4905995 malek
malek's picture

cannot make cryptocurrencies appear?

Why, is there a limited number of complex computer algorithms?

Sun, 06/29/2014 - 00:16 | 4906501 TheHound73
TheHound73's picture

Yep, Bitcoin is open source and there are an unlimited number of possible cryptocurrencies based on copies of the software.  One cannot, however, engineer liquidity.

Here you go: http://cdn1.vox-cdn.com/assets/4679887/altcoin_share.png

As a new crypto investor would you pick some tiny slice to invest your hard earned money into or go with the main currency with the strongest mining security and more accepting merchants/other investors?  This is called "let the market figure it out." Bizarre, I know.  As we can see from the chart, class, people have been investing in Bitcoin over all altcoins combined at a rate approx. 20-to-1.  This could change in the future but I believe it would require some particular reason that I just don't see currently.

Sat, 06/28/2014 - 00:40 | 4904854 palmereldritch
palmereldritch's picture

 All my crypto currency holdings are in Kreigerrands!

http://www.reddit.com/r/ArcherFX/comments/1zi786/kriegerrand_if_dogecoin...

Sat, 06/28/2014 - 04:45 | 4905009 shouldvekilledthem
shouldvekilledthem's picture

I liked Bitcoin back before these shit-shows like Maxcoin and Dogecoin popped up

I started to hate gold because silver and platinum appeared...(facepalm)

Altcoins can easily be avoided. (eg: don't buy/mine any) 


 

Fri, 06/27/2014 - 19:22 | 4904253 gh0atrider
gh0atrider's picture

We love Bitcoin and all of us here on Zerohedge love you Satoshi!!!

Fri, 06/27/2014 - 19:35 | 4904284 XenoFrog
XenoFrog's picture

Anyone who buys bitcoin instead of gold/silver is a total fool.

Fri, 06/27/2014 - 19:37 | 4904293 gh0atrider
gh0atrider's picture

gh0atrider was not aware you had to choose between them?

Do you have to choose between golds and silvers too?

Fri, 06/27/2014 - 20:13 | 4904393 CH1
CH1's picture

was not aware you had to choose between them

Precisely.

Gold, silver and BTC work together beautifully. Us versus them is gorilla thinking.

Sat, 06/28/2014 - 04:46 | 4905010 shouldvekilledthem
shouldvekilledthem's picture

I'm glad not everyone is a retard here.

Sat, 06/28/2014 - 13:50 | 4905535 sessinpo
sessinpo's picture

CH1    Gold, silver and BTC work together beautifully. Us versus them is gorilla thinking.

---

shouldvekilledthem   I'm glad not everyone is a retard here.

---

Except there is a little principle called opportunity costs that escapes both of you.

Fri, 06/27/2014 - 20:12 | 4904390 TVP
TVP's picture

Let's do a little logic experiment.

Say you and I have $1000 dollars to invest, back in Feb. 2013.

I put my money into bitcoin (~$11/coin, or about 100 coins).

You put yours into silver (~$30/coin, or about 33 coins).

Fast forward to today.

I made about $60,000.

You lost about $130.

 

So from a contrarian perspective, your point makes total sense.  

 

Fri, 06/27/2014 - 22:40 | 4904681 Who was that ma...
Who was that masked man's picture

Let's say I invest that $1000 into gold in 1950 and you try to buy bitcoins on the same day.  Everyone would just laugh at you and take your money and today, you'd have zip and be livin' on the street corner while my gold would be worth gazillions.

Sat, 06/28/2014 - 21:12 | 4906250 Haole
Haole's picture

Let's say that makes no sense at all and there are 7 other cognitive failures on here that think that was worth upvoting. 

So, that's what ZH has become... People used to come here to escape that kind of idiocy and now it's rewarded. 

 

Sat, 06/28/2014 - 06:29 | 4905062 cocky roach
cocky roach's picture

That's a very convenient timeframe you chose. I'm sure the same case can be made about a number of stocks (vs gold) if you choose your dates right.

I want to see how Bitcoin does in the future, when competition against other cryptocurrencies become more fierce. I don't really see a reason why Bitcoin should be much more valuable than any other coin.

For now, I don't care how much people are paying for any kind of shitcoin.

I'll take cryptos seriously when we see some get commodity backing. Now that's a game changer.

Sat, 06/28/2014 - 21:04 | 4906235 Haole
Haole's picture

You criticize a factual timeline and real math from TVP rather than the guy above you who justifies his brilliant failure at math and exaggeration with an unreasoned absurdity altogether?  Convenient or not, it is what it is.

Bitcoin is backed by a significant amount of human capital and altruistic motivation, innovation and inginuity akin to the internet build-out itself, the most powerful computer network on the planet and the fact it is valueable as an asset and as currency to more and more people every day.  Currency is but one of many of the uses of crypto blockchain technology

The fact people are upvoting you guys is pretty hilarious because both of you guys obviously know nothing about Bitcoin and the guy above you just summarily spat-up on himself. 

Sun, 06/29/2014 - 07:23 | 4906753 cocky roach
cocky roach's picture

I'm impressed that you know so much about what I "obviously" don't know.

I'm not criticizing the factual timeline itself, but rather pointing out that the same comparison can be made with many other assets. I don't really believe that gold vs bitcoin comparisons are of any value, as they are very very different. I believe both have their uses and both can have a place in a portfolio.

Bitcoin is backed by nothing, since motivation, ingenuity and altruism aren't actually assets (and I don't know what you mean by "human capital"). Bitcoin's price has to do mostly with speculation, since most of Bitcoin trading is done by speculators who expect the price to move up or down. A fraction of trading has to do with people actually interested in purchasing goods and services. With Bitcoin's huge volatility, I also believe it's use as a currency is limited.

I'm glad you find the upvoting hilarious. I enjoy it as well.

Fri, 06/27/2014 - 22:59 | 4904709 Bunga Bunga
Bunga Bunga's picture

Thanks, that's a strong argument, I will sell all my coins now.

Sat, 06/28/2014 - 00:38 | 4904864 PaperWillBurn
PaperWillBurn's picture

Anyone who doesn't own some of both is a fool.

 

 

Sat, 06/28/2014 - 01:51 | 4904928 TheHound73
TheHound73's picture

500% YoY fool.  Best performing asset 4 years in a row fool.

Somebody please bet me 5 oz. silver that Bitcoin's price won't double to $1200 in the next 6 months.

Sat, 06/28/2014 - 11:06 | 4905289 shitco.in
shitco.in's picture

6 months?  I give it 30 days. 

Sat, 06/28/2014 - 18:49 | 4906037 RichardParker
RichardParker's picture

"500% YoY fool..."

If this happened with anything else like say real estate, tech stocks, historically correct classic cars, tulips, beanie babies, etc. this would be called a bubble, no?

Sat, 06/28/2014 - 19:31 | 4906097 TheHound73
TheHound73's picture

Bitcoin has experienced multiple bubbles, each top priced exponentially higher than the previous top, each post-bubble low higher than the previous bubble's high.  Bitcoin is an entirely new asset class and the market's saturation demand has not been discovered yet.  

http://bitcoincharts.com/charts/bitstampUSD#rg730ztgSzm1g10zm2g25zvzl

Sat, 06/28/2014 - 20:42 | 4906212 Haole
Haole's picture

That's because most people have never even heard of a technological adoption curve and where Bitcoin is on it's trip if it is to be adopted by mainstream consciousness globally. 

Sun, 06/29/2014 - 12:26 | 4907131 Me.Grimlock
Me.Grimlock's picture

I'm neither for nor against the bitcoin concept, but I read this just this morning, FWIW:

 

http://www.coindesk.com/california-governor-grants-bitcoin-legal-money-s...

Sat, 06/28/2014 - 10:45 | 4905266 meghaljani
meghaljani's picture

I bought bitcoins last year and made six times my money so far. How much did you make on your gold? But I just forgot that bitcoins do not shine in the moonlight, and I will not be able to use them during the nuclear attack when the grid goes down. 

Sat, 06/28/2014 - 13:52 | 4905542 sessinpo
sessinpo's picture

meghaljani    I bought bitcoins last year and made six times my money

---

You made what? I thought bitcoin was a currency. Oh yea, it's priced in dollars. In other words Bitcon is a dollar derivative.

Sat, 06/28/2014 - 16:50 | 4905821 meghaljani
meghaljani's picture

Gold and silver are also priced in dollars. 

Sat, 06/28/2014 - 18:36 | 4906002 malek
malek's picture

 made six times my money so far

Hmm, I love the smell of basking in imaginary (non-realized) profits in the afternoon.
Now tell us why shitcoin could never go to zero!

Sat, 06/28/2014 - 19:09 | 4906067 RichardParker
RichardParker's picture

If you like your bitcoins, you can keep your bitcoins.

 

I wonder how long it would take for the supine court to rule them to be unconstitional,  or a WMD?  Maybe an executive order making possesion or use of them a felony?  Maybe something along the lines of executive order 6102 (for bitcoins) with the buzz words national security thrown in for good measure?  Government contractors/NSA causing another Mt Gox?

 

On the other hand, if those airport scanners that the TSA have are powerful enough to see the skidmarks and holes in my underwear, I'm sure they can find gold on your person.  I don't think that's a coincidence either...

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