What's the better store of value, BTC or Gold? ๐ค
The debate always focuses on "history" vs. "digital."
But few talk about the annual cost to maintain the value of these assets.
(Disclaimer: This is economic analysis, NOT investment advice ๐ง).
Every store of value (SoV) has one enemy: New Supply.
For the price to stay flat, the market MUST absorb all this new supply.
Let's do the math. ๐
1. Gold ๐ชฃ: The "Constant Drip"
Gold is great, but it's a bucket that needs constant refilling.
The new supply isn't just mining, it's also recycling.
New Mining: ~3,600 tons/year
Recycling: ~1,400 tons/year
Total: ~5,000 tons the market must buy. Every. Single. Year.
At today's prices, that's $600B - $700B ๐ธ in new money needed... just to stop the price from falling!
This is a massive, constant "sell pressure."
2. Bitcoin ๐ฆ: The "Programmed Vault"
Bitcoin is fundamentally different. Its new supply is known, and programmed to shrink (The Halving ๐).
New Mining (Current): ~164,000 $BTC/year
At today's prices, the market only needs to absorb ~$20B - $25B per year.
Crucially: This BTC amount will be cut in half in 2028, no matter what.
3. The $1 Billion Dollar Question
This is the core difference:
Gold: Needs $600B+ in new demand just to stay stable.
Bitcoin: Needs <$25B to absorb its new supply.
The result?
Any new $1B entering the market has a dramatically larger impact on BTC than on Gold.
Why? Because that $1B isn't just "plugging a leak"; it's competing for a provably scarce asset with a shrinking supply.
Conclusion (Call to Action):
This isn't about what's "shinier" โจ or "older" ๐๏ธ.
It's about economic dynamics.
Gold faces a ~$600B+ annual headwind ๐จ.
Bitcoin has a programmatic supply shock โก as a tailwind.
So, I'll open the discussion to you, BUIDLers:
How much does this "annual supply" dynamic affect your long-term view of these two assets? Let me know! ๐บ๐ฅ
(Disclaimer: This is economic analysis, NOT investment advice ๐ง).
