Precious Metals, Bitcoin: Essentials About Non-Governmental Money

At the core of Bitcoin and other crypto coins as well as gold and silver lies their unique set of properties.

These vary among both groups, with gold and silver being the classical means of  holding and storing value without having to trust any third parties. Bitcoin and other crypto coins allow transferring or sending something of value to someone else without having to trust any third parties.

While the non-necessity of trusting any third parties is common to precious metals on one hand and crypto coins on the other, they are good for very different functions of daily life and commerce.

With Bitcoin having no intrinsic value (out of itself) that could be verified without using an additional (outside) tool (computers, working communications and electricity), it is certainly not a real — i e long-term viable — Store of Value. Precious metals cannot actually be used for larger payments as they cannot realistically be sent in sufficient amounts to someone else.

These limitations of both types of assets boil down to one very simple recipe for the thus different kinds of Private Money outside the realm of government-controlled fiat currencies: Bitcoin for Payments, Gold and Silver for Preserving Wealth.

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