Bitcoin vs. Gold: What Really Counts as Money?

Alan Hibbard recently tackled some of the toughest questions our community has about Bitcoin, gold, and silver. In this thought-provoking video, he explores whether Bitcoin is truly money, why companies abandoned it as a payment method, and how it compares to the time-tested value of gold and silver. Below are some of the key takeaways from his analysis. 

Bitcoin: Commodity, Currency, or Store of Value? 

One viewer argued that Bitcoin can’t be a commodity because it isn’t on the periodic table of elements. Alan quickly counters: plenty of commodities aren’t elements — think lumber, corn, or soybeans. By market definition, Bitcoin qualifies as a commodity. But is it money? 

Here’s where it gets interesting. Despite being called a “cryptocurrency,” Alan argues Bitcoin isn’t really a currency. Why? Because people don’t spend it. They hold it. From Fiverr to Dell to Tesla, major companies experimented with Bitcoin payments, only to abandon them due to low demand, high fees, or volatility. In Alan’s words, the market has spoken: Bitcoin is not being used as money, but increasingly as a store of value. 

Evidence of Value: Holding Patterns 

If Bitcoin isn’t a currency, does it have value? Alan points to “hodl waves,” which track how long Bitcoin stays in wallets without being spent. The data shows a growing trend: people are holding their Bitcoin for longer and longer periods. This behavior mirrors gold and silver investors who buy and hold as protection against inflation and instability. 

In short: Bitcoin isn’t acting like money you spend — it’s acting like wealth you preserve. 

Bitcoin vs. Silver (and Gold) 

Another common question: Is all the Bitcoin ever mined worth more than all the silver ever mined? As of today, no. Silver’s total above-ground value edges out Bitcoin. But there have been moments when Bitcoin briefly surpassed silver in market cap, underscoring its volatility. 

Gold, of course, still stands apart. Its centuries-long track record as money, its intrinsic value, and its universal acceptance keep it at the top of the hierarchy. Alan makes it clear: while Bitcoin may fluctuate in and out of silver’s shadow, gold remains the undisputed anchor of value. 

Money, Currency, and Promises 

Alan introduces an important distinction: money versus currency. Gold in your hand is money — it has no counterparty risk. But if you store your gold with a custodian, what you actually hold is a promise, making it more like currency. The same logic applies across the financial system: banknotes, deposits, and credit cards are all promises built on top of money. 

This framework highlights a key difference: gold is money at its base layer. Everything else, including Bitcoin and fiat, depends on promises that may or may not hold over time. 

Could Bitcoin Go to Zero? 

Perhaps the boldest claim Alan makes is this: Bitcoin will eventually go to zero. Not today. Not tomorrow. Maybe not even in our lifetimes. But unlike gold and silver, Bitcoin has no intrinsic value to fall back on once it loses its monetary premium. Gold and silver, by contrast, have industrial, ornamental, and intrinsic uses that give them enduring worth. 

This doesn’t make Bitcoin worthless today. In fact, it’s precisely its scarcity and decentralized nature that give it value now. But investors should understand the difference: gold and silver will never go to zero. Bitcoin might. 

Final Thoughts 

Alan’s message is clear: Bitcoin may be a commodity and a store of value, but it is not money in the same way gold and silver are. Its future depends on confidence and perception, while gold and silver’s future is rooted in physical, intrinsic value. 

If you’re weighing Bitcoin against precious metals, Alan’s analysis is worth watching in full. It’s a timely reminder that while digital assets rise and fall, gold and silver remain the foundation of honest money. 

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People Also Ask

Is Bitcoin considered money? 

Bitcoin is not widely used as money. Despite being called a “cryptocurrency,” most people don’t spend it as currency. Instead, Bitcoin functions more like a store of value, as holders prefer to keep it rather than use it for everyday transactions. 

Why did major companies stop accepting Bitcoin as payment? 

Companies like Fiverr, Dell, Steam, and Tesla dropped Bitcoin payments due to low demand, high transaction fees, and volatility. Customers preferred to spend fiat currency instead of Bitcoin, reinforcing the view that Bitcoin is not practical as a currency. 

How does Bitcoin compare to silver and gold? 

As of now, the total value of all Bitcoin ever mined is slightly less than that of all silver ever mined, while gold remains far more valuable. Gold also has intrinsic value and centuries of use as money, making it the more enduring store of wealth. 

Can Bitcoin go to zero? 

Yes, Bitcoin could eventually go to zero. Unlike gold and silver, Bitcoin has no intrinsic value beyond its monetary premium. If confidence fades, its price could collapse. Gold and silver, however, retain industrial and ornamental uses, ensuring they will never fall to zero. 

What’s the difference between money and currency? 

Money, like physical gold, is an asset with no counterparty risk. Currency, such as paper dollars or digital deposits, represents a promise to pay money. Bitcoin currently acts more like a speculative store of value than true money in this framework.