Duke University
Gold and Bitcoin
Duke University

Gold and Bitcoin

Campbell R. Harvey

Instructor: Campbell R. Harvey

Included with Coursera Plus

Gain insight into a topic and learn the fundamentals.
Intermediate level

Recommended experience

6 hours to complete
Flexible schedule
Learn at your own pace
Gain insight into a topic and learn the fundamentals.
Intermediate level

Recommended experience

6 hours to complete
Flexible schedule
Learn at your own pace

What you'll learn

  • Analyze gold vs. bitcoin with data—scarcity, inflation, costs, custody, and portfolio impact.

  • Understand current price drivers—financialization, central-bank buying, de-dollarization, and reserve-currency politics.

  • Assess tail risks: bitcoin’s 51% and quantum threats; gold’s supply shocks from advanced extraction, recycling, and off-world sources.

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Recently updated!

October 2025

Assessments

4 assignments

Taught in English

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There are 4 modules in this course

This module presents the first-principles intuition for bitcoin by unpacking the technology stack that makes it work. We begin with blockchains as append-only, distributed ledgers that remove single points of failure and allow many parties to share a synchronized record without pre-existing trust. You’ll see how cryptographic hashing (SHA-256) links blocks, why “one-way” functions matter, and how proof-of-work turns security into an open, global competition. We then follow a transaction end-to-end: private keys create public addresses, digital signatures authorize spending, and miners bundle validated transactions into blocks roughly every ten minutes. With that foundation, we examine mining mechanics (nonces, difficulty, incentives) and why decentralization—anyone can run a node or mine—is a design feature, not an accident. Finally, we zoom out to decentralized finance: what problems bitcoin and its successors try to solve (inefficiency, limited access, opacity, centralized control, and poor interoperability) and how “layer 2” systems aim to improve speed and cost. The goal: translate buzzwords into working knowledge so you can evaluate bitcoin’s capabilities and limits with rigor.

What's included

7 videos2 readings1 assignment

This module compares bitcoin and gold on the dimensions that make them “monetary commodities.” Both are scarce, hard to counterfeit, expensive to produce, and decentralized in supply. We quantify inflation from the source: for gold, mine output relative to above-ground stock; for bitcoin, the protocol’s halving schedule and the practical effect of lost coins on effective supply. Neither asset generates cash flows on its own, yet both can be “financialized” (ETFs, tokenized forms, or lending) to create yield-like streams with attendant risks. We analyze production economics: high, persistent energy and capital costs; location flexibility for bitcoin miners versus geology-bound gold producers; and why electricity is a first-order driver for bitcoin but one among several for gold (labor, maintenance, exploration). Finally, we emphasize decentralization: no single entity controls issuance, and concentration risks are lower than in fiat regimes. This section equips you to separate narratives from mechanics when judging scarcity, inflation, and cost—core inputs to valuation and portfolio design.

What's included

4 videos1 assignment

This module shows how similarities fade when we examine intrinsic nature, market structure, and trust models. Gold is physical: it requires custody, purity testing, and logistics; it is heavy to move and awkward to subdivide. Bitcoin is digital: instantly auditable on a public ledger, natively divisible into 100 million “sats,” and globally portable with a key. We compare monetary characteristics (seizure and counterparty risk for bank-held gold versus key-management risk for self-custodied bitcoin), settlement (multi-party supply chains for bullion versus on-chain finality), and censorship resistance (low for cross-border gold, high for bitcoin). Markets differ too: gold’s capitalization is much larger, with deep official-sector adoption (central-bank reserves), while bitcoin’s liquidity and volatility profiles are distinct and more extreme. We conclude with regulatory and geopolitical contrasts—legal-tender status, bans, sanctions evasion channels—and the practical implications for portfolio construction, rebalancing, and stress scenarios. The upshot: not substitutes, but different instruments with diverse use cases and risk vectors.

What's included

8 videos1 assignment

This module tackles asset-specific tail risks. For bitcoin, we analyze a 51% attack—how the majority hash power could reorder transactions—and estimate the capital, energy, and infrastructure requirements to launch an attack. The analysis suggests that the cost of a 51% attack is modest compared to the potential profit when bitcoin is shorted. We then separate two quantum vectors: Shor’s threat to elliptic-curve keys (mitigable via post-quantum migration) versus Grover’s far less practical impact on SHA-256 mining. For gold, we examine technological supply shocks that bitcoin does not face: “modern alchemy” (nuclear transmutation pathways), new on-Earth sources (oceans, with daunting economics), and off-Earth sources (metal-rich, near-Earth asteroids) that could, in time, expand supply and pressure real prices. Historical analogies (e.g., New World inflows) show how sudden supply can reset monetary metals. We close by arguing that the thinking of bitcoin as “digital gold” is an oversimplification. Bitcoin is not a substitute for gold. Both assets have a role in diversified portfolios.

What's included

6 videos1 reading1 assignment

Instructor

Campbell R. Harvey
Duke University
6 Courses77,972 learners

Offered by

Duke University

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