Gold vs Bitcoin: 5000 Years of History
52sThe historical contrast between gold's 5000-year legacy and Bitcoin's recent origin sparks curiosity and debate.
▶ Play Clip"Delivers exactly what the title promises: a thorough, balanced comparison of Bitcoin and gold with actual data and charts."
This video offers a detailed comparison between Bitcoin and gold across seven dimensions: history, volatility, scarcity, portability, adoption, tangibility, and performance. The presenter uses real charts and a visual table to help viewers understand the trade-offs between these two assets as stores of value and inflation hedges.
Gold has been used as money for over 5,000 years, serving as a universal financial language across civilizations. Bitcoin was created in 2009 as a decentralized digital alternative after the financial crisis, with an unknown creator.
Bitcoin is extremely volatile: it can rise 456% and then drop 75% within a few years. Gold moves smoothly with 3–5% annual changes, though it can rise 67% or 151% over longer periods.
Bitcoin has a fixed supply of 21 million coins, controlled by programmed halving events every four years. Gold's supply increases by 1–2% annually through mining, and a new discovery could boost supply unexpectedly.
Gold is heavy, expensive to transport, and difficult to divide. Bitcoin can be sent globally in minutes for low fees, is divisible into eight decimal places (satoshis), and can be stored on a cold wallet like a USB drive.
Gold is the ultimate safe asset, held by central banks (over 36,000 tons). Bitcoin is growing rapidly with ETF approvals, corporate adoption, and El Salvador's adoption as legal tender, but no central bank holds Bitcoin yet.
Gold can be held physically or via ETFs; physical gold requires storage costs. Bitcoin can be self-custodied via cold wallets or held on exchanges, each with trade-offs. The presenter uses a conservative bot to profit from Bitcoin's volatility.
Since 2017, Bitcoin rose about 100% (and 456% from 2023), while gold rose 242% (and 151% from 2023). Both serve as alternatives to fiat money, protecting against inflation, but Bitcoin offers growth potential with higher risk.
How many bitcoins were used to buy two pizzas in the first real Bitcoin purchase?
10,000 bitcoins
01:24
What is the maximum supply of Bitcoin?
21 million
06:05
By what percentage did Bitcoin drop from its peak in 2021 to the 2022 low?
75%
02:41
By what percentage did Bitcoin rise from 2023 to 2026?
456%
03:09
By what percentage did gold rise from 2019 to 2021?
67%
03:36
By what percentage did gold rise from 2023 to 2026?
151%
04:03
What is the Bitcoin halving event, and how often does it occur?
Every four years, reducing the creation of new bitcoins.
06:19
What is the key difference between gold's scarcity and Bitcoin's scarcity?
Gold is natural and unpredictable; Bitcoin is mathematically capped and transparent.
06:48
How much gold do central banks hold, and do any of them hold Bitcoin?
Over 36,000 tons of gold; none hold Bitcoin.
10:14
How divisible is Bitcoin?
Up to eight decimal places, called satoshis.
07:44
Gold as the first global financial language
Illustrates gold's deep historical role as a universally understood medium of exchange, predating modern currencies.
00:57Bitcoin's 75% drawdown
Quantifies the extreme volatility of Bitcoin, a key factor for any investor considering the asset.
02:41Using a bot to profit from volatility
Demonstrates a practical strategy to manage Bitcoin's volatility, targeting 1.5% monthly returns with conservative parameters.
05:23Programmed vs. natural scarcity
Highlights the fundamental difference in supply mechanics between Bitcoin and gold, affecting long-term value perception.
06:05Both assets as inflation hedges
Ties together gold and Bitcoin as alternatives to fiat money, appealing to investors seeking protection against currency debasement.
14:11[00:03] stores of value, but they function in completely different ways. Today we're going to compare history, volatility, scarcity, portability, adoption, [music] tangibility and performance. Clear. And we'll also see
[00:17] something that not many people explain, which is what they have in common as an alternative to fiat money, which are the euros and dollars. And as I tell you this, you'll see a table that will be filled in section by section so you can
[00:29] follow along visually. Let's start with the history, because understanding where these two assets come from completely changes the way you see them. Gold has been money for over 5,000 years. The Egyptians used it as a
[00:44] symbol of wealth. The Romans minted coins. Merchants used it as a universal means of payment. Interestingly, on many ancient trade routes it was not necessary to speak the same language. As long as
[00:57] you wore gold, everyone understood you. It was literally the first global financial language. Bitcoin, on the other hand, was born very recently, in 2009, right after the financial crisis. It is a response to the abuse of printing
[01:12] money, dollars, euros and to the loss of confidence in the banking system. Bitcoin's creator, Satoshi Nakamoto, whose identity is unknown—whether he is a person, group of people, or aliens—designed it as a
[01:24] decentralized digital alternative with a scarcity that no one can manipulate. And a funny anecdote: the first real purchase with Bitcoin was two pizzas for 10,000 bitcoins. Imagine what 10,000 bitcoins
[01:39] converted to euros would be worth right now if each bitcoin is currently worth around €90 or €80,000. That would be millions today, but at that time it was just an experiment. Gold represents tradition, Bitcoin represents innovation. Tell me which one you connect with the
[01:55] most. Okay, I understand the story. Let's move on to something more emotional, volatility, that is, how much the price moves. Bitcoin, I suppose you already know, is super volatile. You can rise incredibly high and fall just as quickly.
[02:10] It's like a roller coaster, a rocket-like climb and a drop almost without warning, not for the faint of heart. Moreover, I have the Bitcoin chart right here on the screen. Each of these candles I have set up is a One Week candle, that's why it's a W. Each
[02:25] if I take this measuring tool, for example, from 2019, you can suddenly go up to 16% in a matter of 2 years, but then drop again in a short time to 820,
[02:41] you know? Proportionally, then go up again , go down, for example, a drop from here we have from this peak to here, Bitcoin dropped 75%. How would you feel if your entire portfolio consisted of Bitcoin—which I'm saying doesn't have to be—
[02:54] I'm saying doesn't have to be— and it dropped by 75% in 392 days, in a year and a bit? But of course, then you take it and from, for example, not so long ago , 2023 and now that we are almost in 2026, well look how it has risen by
[03:09] 456%. Of course, let's compare this with gold, which I also have the graph for here, and we've had gold for a longer time, right? Since Bitcoin was created in 2009, I have the same graph here. We see how it has been going
[03:22] up, a correction, a strong rise too, or so it seems on the chart. But if I take the measuring stick, for example, also from 2019 more or less around here, notice how it can also rise in a matter of, well, one or two years,
[03:36] right? Like a bit with 1600%, but it goes up by 67%, steep, but if Bitcoin, well, it's not that volatile, but we can see how it also has some
[03:50] good ups. For example, since 2023 we have seen all the rise of Bitcoin, maybe gold in 2023 is around here, it has also had a here, it has also had a good rise, but it has been 151%
[04:03] when we have seen that Bitcoin was also since around 2023 a 400 almost 500%. That's where you see the difference. Not just in terms of performance, but also volatility, right? It goes up a lot, then it drops
[04:16] by 75%. Well, a little, right? Which side do you sympathize with more? Or would you feel comfortable spending a lot of your money on something like that? Sure, if you believe in Bitcoin long-term, then fine, but you might want to
[04:29] diversify a bit with gold too. Or maybe you don't like Bitcoin because of its technology, you don't believe in it, so you prefer all gold. That's interesting. Which type are you more, gold type or
[04:42] Bitcoin type? Hey, you can have both, okay ? But anyway, let's continue comparing the points. In short, I was saying that Bitcoin can go up and down a lot, while gold is more like the opposite, with smooth, stable movements of 3-5%
[04:56] even in crises, I mean annually. That's why people say Bitcoin is the explosive cucumber and gold is the quiet grandmother who never fails, to put it mildly. But be warned, that volatility is exactly what has allowed
[05:10] Bitcoin to have extraordinary returns. More risk, more potential; less risk, more stability. Which, by the way, aside from being able to hold Bitcoin so that it goes up, what I do at the same time is
[05:23] take advantage of that volatility, because it may be that one day it's here, a month passes and but in the meantime I take you on a very heavy roller coaster ride. What I have is a bot that buys as the price goes down and sells as it goes up. I have it managed fairly
[05:36] conservatively to avoid too many surprises, no leverage to prevent liquidation. In the worst case scenario, my bot would buy Bitcoin for me at a lower price and I would keep that Bitcoin I bought there,
[05:48] bad. In fact, my goal is to achieve a 1.5% monthly return with relatively conservative parameters, and so far we're doing well. I on my Telegram channel. If you want, I can leave it in the description and that's it. And
[06:05] since we're talking about volatility, we also have to talk about scarcity, because this is one of the most important points. Bitcoin is designed to have a maximum limit of 21 million bitcoins, not one more. He is a mathematician. And
[06:19] every 4 years this event called halving occurs in Bitcoin, reducing the creation of new bitcoins and making it even scarcer. Gold is also scarce, but it's not like there's an imposed limit or anything like that. In fact,
[06:33] every year between 1 and 2% more gold is extracted, mined from our planet Earth . And if a super-deposit of gold were discovered in some country tomorrow, then the supply would increase. A very visual comparison. Bitcoin is like
[06:48] a countdown that everyone can see. Gold is like searching for treasure. You never know when a giant one might appear. This is programmed scarcity, Bitcoin versus natural scarcity, gold, although it is not known exactly what that scarcity is.
[07:04] Now let's move on to something very practical: moving your money. Transporting gold is a nightmare; it's heavy, takes up space, and is expensive to store. And you can't carry it in a suitcase without customs officials giving you strange looks. And if you want to pay for something small,
[07:18] good luck splitting an ingot in half. Bitcoin, on the other hand, moves like an email; you send it anywhere in the world and you have it in minutes and for very little cost. What's more, I pay my video editor, who's
[07:31] doing it right now, a greeting, in cryptocurrencies; it arrives in a moment and I pay barely cents in commissions. In fact, Bitcoin is divisible into up to eight decimal places called Satoshis, and you can store it on a device, in
[07:44] your exchange account, or you can self- custody it in a Ledger. These are things that look like a USB drive and are so simple that it's as if they 're not connected to the internet, so a hacker can't access them,
[07:58] although they also have their disadvantages. What happens if you lose this? Specifically, this doesn't happen, but rather the seed phrase you have written down cryptocurrencies that are on the blockchain. Okay, so if you lose
[08:12] a metal plate or something like that, but if someone steals it, someone physically comes to your house and steals it, for example, then I can also has advantages and disadvantages. In
[08:24] self-custody, in a cold wallet, is the closest thing to physically storing gold bars, which you can keep in your safe. They might lot of gold, you could keep it in the bank, in your safe, but then it
[08:37] weighs more to carry. This is digital. If they steal this from you and , then they can steal it from you. Well, that's a whole other topic. But what I was saying about portability, look, a brutal scene. If you want to
[08:50] look, a brutal scene. If you want to move to another country with 100 million in gold, you'll need an escort, very large suitcases, or you'll have to pay for those costs to transport it. With Bitcoin you can literally carry it in a penny or
[09:02] even in your head. You can have just the passwords to access it. Note that with gold, not everything is physical gold; you can also buy gold ETFs or gold shares as commodities. So, that would be more
[09:15] also an option. And now let's talk about adoption. Because there is a huge difference here. Gold is the ultimate safe asset. It is bought by central banks, it has been regulated for decades, it has a huge market and
[09:31] gigantic liquidity. On the other hand, Bitcoin is growing very rapidly, with ETFs being approved, public companies accumulating Bitcoin, and investment funds also entering the market so that their investor clients can have Bitcoin in a more
[09:46] traditional clients who don't know how to buy Bitcoin with a computer. Some countries, such as El Salvador, have even adopted it as a currency or reserve. Yes, yes, Bitcoin. But of course, it also has risks. Some countries may
[10:00] restrict or prohibit its use. Its technology requires personal responsibility if you want to store it yourself, as I mentioned before, and it remains a very volatile asset. Interestingly, central banks hold over
[10:14] 36,000 tons of gold, but none of them hold Bitcoin. If that ever changes, get ready because it seems we're close. Let's move on to tangibility and custody. If you want to keep gold in your own custody, to have it yourself, to control it yourself,
[10:29] then it's physical gold, which weighs something and takes up space, and there are costs involved in storing some kind of bank, but it has costs. In contrast, Bitcoin is all digital, it doesn't weigh anything, therefore it's much cheaper and much
[10:43] easier. And this applies to Bitcoin, both with self-custody, as I said, through a Cold Wallet device, a cold wallet where you have your password written down, your seed phrase , but you can also not
[10:56] have the Bitcoin in self-custody if you don't know how to do it, it seems complicated to you, you don't want to risk it because, what happens if you lose this or something like that investment platforms, on cryptocurrency exchanges, as they're called, but the thing is,
[11:10] with gold you don't really have to have it physically. You can invest in a gold ETF or you can also buy gold shares on a platform , something like that. It's like, well, investing in raw materials like gold,
[11:23] and then you don't have that problem of taking up space or anything like that, and you're exposed to the value of gold and you're exposed to the value of Bitcoin. It months or years from now, when you want to sell it, which I understand is ultimately the purpose,
[11:36] right? To make money, or rather, to protect your value, but to exchange it back into euros someday. So in both cases, you convert it to euros. You say, "Hey, I'm selling my gold and converting it to euros," or " Hey, I'm selling my Bitcoin,
[11:48] to your bank transfer, okay?" So in both cases, with today's technology, it's relatively easy to have both, with the only difference being that if you want self-custody, it gets
[12:02] complicated with gold, while it's easier with Bitcoin . And now, the point many are waiting for: performance. Bitcoin has had one of the best also more recent; we can't see decades of its
[12:16] performance. We've seen brutal rises, yes, but also very steep falls . It's an asset that rewards those who hold on for the long term. In the crypto world, that's called Diamond Hands, meaning you hold onto Bitcoin and don't
[12:30] sell it. The opposite would be like Paper Hands, you know, those who ca sell it, you know? It's like Paper Hands. Nothing, just a curiosity of the industry. On the other hand, gold doesn't offer surprises if we compare it to
[12:44] surprises if we compare it to Bitcoin. It rises little by little, maintains its value, I repeat, if it's compared to Bitcoin, and it serves to preserve your money, not so much to multiply it, because Bitcoin is also about growth, while gold
[12:57] is about stability. In fact, look, let's look at the charts again, which were very good. Look, we can see that Bitcoin since 2017, or yes, this chart is what allows me to see up to the present, has risen by about 100%,
[13:13] okay? In what would be about 8 years. On the other hand, if we compare it with gold, I'll also show that from around 2017 to the present, it has grown by 242%. As you can see, of course, it's like, hey, yes,
[13:28] with gold in 8 years, of course your wealth has increased, you've made Bitcoin, you're more about preserving value, you have fewer shocks, and with Bitcoin, if you You've taken a gamble, so to speak, if you trust Bitcoin, if you've
[13:41] thoroughly analyzed its market trends, how it's shaping society, and whether or not it has future utility. Then you've reaped the rewards by enduring the ups and downs, by having the stomach for those price swings. You've
[13:55] unlike with gold, where you only made around 200%. Anyway, here's something very important: what Bitcoin and gold have in common. Both are alternatives to fiat money, the euros and dollars, which, as you know,
[14:12] lose purchasing power every year due to inflation. It's part of the system. There's a famous story from Germany in the 1920s, where there was hyperinflation so brutal that people carried money in wheelbarrows to
[14:27] buy bread. I'll leave some pictures here. Those who had gold survived. Bitcoin tries to fulfill that same function, but in a digital and decentralized way, without needing to be controlled by governments or
[14:41] any bank. Gold and Bitcoin are different, but they share the same... My mission: to protect myself from inflation. And now for the conclusion. If you're looking for stability and tradition, gold is your asset. If you're looking for growth and future adoption,
[14:57] then Bitcoin is a much stronger bet. In my personal case, if you're interested, I have an emergency fund for what I would need for six savings account like Revolutate Republic. The rest I invest
[15:10] heavily in long-term index funds and then supplement with alternative investments like Bitcoin and gold. Except in my case, I allocate more of this portion to Bitcoin than to gold. Smash that like button if
[15:22] you enjoyed this video and tell me in the comments how you allocate your portfolio between gold and Bitcoin. Thank you very much, and I'll see you in the next video.
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