I think it currently stands at 1/20th the value of gold. It is better than gold in that it can be sent to someone else in minutes whereas gold is heavy and difficult to transport. Both gold and bitcoin are "proof of work" and assets. Unlike gold which increases by 1.5% a year, the amount of Bitcoin cannot change and thus cannot be inflated by making more of it. Bitcoin cuts out the middle man where the middle man is the government and central banks. No one can take your bitcoin if you store it in a electronic wallet.
The alternative is fiat money. President Nixon disassociated fiat money from gold. At one time you could exchange US dollars for gold. Now the US government just prints fiat money to cover its debt:
- The banks give an IOU to the treasury,
- the treasury gives the bank bonds,
- the bank takes the bonds to the federal reserve who prints money and gives it to the bank who
- gives the fiat money to the US treasury
- to be spent on government programs that help ensure their election.
This causes inflation which means the value of the dollars you have is worth less. It a form of taxation but it is not as easily recognized as taxation which is advantageous for the government. Then the government create a formula for inflation that doesn't honestly reflex inflation so when they say inflation is 3% it is more likely to be 8 or 9%. The vicious circle continues till people get fed up with the PONZI scheme and no longer use the fiat currency of the nation (i.e. Zimbabwean). The US's ponzi scheme is not as bad as that of most other countries. Also, since the U.S. dollar is recognized as the world currency, the US and print money to pay for stuff from other countries (trading deficit) and the other countries hold our bonds. Eventually, they wise up and won't take our bonds.
Bitcoin in theory could replace the government controlled central bank thus cutting out the middle man and huge bureaucracy needed to keep track of transactions between people and their banks and the banks of other people, yahda yahda.
Bitcoin probably will be able to be bought on an ETF in next 6 months if/when the government approves it. That being said, it's better to hold your own bitcoin to protect you from the government seizing it as they did with gold.
And then there's the theory that there might be less warfare with Bitcoin because governments use inflation to fund wars and inflation is more easily hid from the populace so they go along with it for a longer time. The expense of the Viet Nam war is why Nixon went of the gold standard.
To indoctrinate the populace, the people in school at taught Kensyian economics that teaches over spending (inflation) encourages spending that encourages economic growth which fits the government's agenda.
That being said, it's more complicated than that and maybe I'm the one that talking out of my butt. Maybe I'm deceived. Maybe not.
Anecdotal true stories: my son's high school's friend's brother bought Bitcoin many years ago and made $100 million dollars. Meanwhile, my son's friends also bought Bitcoin and had it on his computer and accidentally reformatted the hard drive and lost his Bitcoin (I don't know how much)
Final financial advice: be one of God's adopted children ... or at least marry rich ... giggle
Yeah, guess Christ is interceding for that too ...
Apologies for being 'off topic'.