I don't think the fact that gold is worth 1% of it's current value for non monetary uses makes any difference to it's suitability as money.

If you want money, to save, you want something that has attributes that will not let the value escape somehow. Bitcoin is better than gold because they can mine more gold and gold is hard to transport or use for commerce. This is why they were able to take us off a gold standard - because paper denominations are easier to deal with and most people resorted to letting the banks holds it for them.