Because Bitcoin is far, far more correlated with the stock market than the proponents want to admit. Notice that gold didn't budge, "digital gold" my ass.
When folks get scared, pure speculation instruments like BTC will tank.
When folks get scared, pure speculation instruments like BTC will tank.
Gold's perceived value may be higher, but that's only because it's perceived, incorrectly, to have "intrinsic" value.
As far as I understand, Bitcoin is backed by energy and scarcity, much like gold: it requires significant energy to "mine" a Bitcoin, and it can't be easily duplicated, if at all. That's its intrinsic value, unlike fiat currencies that can be printed easily (correct me if I'm wrong).
I also believe that even gold has little intrinsic value, perhaps even less than steel. Ultimately, it's really a question of how valuable something is as a medium of exchange. Bitcoin is durable, portable, divisible, scarce, verifiable, and decentralized, which makes it a valuable form of currency. I suppose that's its exchange value.
I think for it to be a currency it has to be accepted for real world products? A currency is also useless if it fluctuates this much because you cannot set prices for anything.
By your logic stocks would be a currency?
A security is what it is at this point
If that is good or bad is an open question.
So yes, whether Bitcoin is money or a security remains an open question.
Uh that energy is spent though, transformed into heat , you can't reverse all that hashing and have the computer emit electricity.
How is BTC not the exact opposite of gold? It has no fundamentals whatsoever, no uses outside its transactability, and is widely used to speculate.
If BTC is the exact opposite of gold, it follows that Eth, Ripple, USDC, etc are all more gold-like than BTC. I'd be interested to hear why you believe that to be true.
BTC is a coin with longer investments and does not fluctuate as much as other cryptocoins (by %). It has a known supply (past, present and future) and predictable mining rate. It has a known finite future supply cap.
To be clear i don't believe BTC is a perfect gold analog. But if you have to pick the "most gold-like" digital asset, it would make my short list.