More and more people think that bitcoin is much more valuable than gold. This is so because of how the world is changing. Here’s why Bitcoin may hold more long-term value than gold.
[1] Absolute Scarcity (Fixed Supply).
Bitcoin : There will never be more than 21 million coins in existence.
Each year gold will get mined as new supply as (2-3% inflation). There may also exist some undiscovered deposit.
Bitcoin is the asset with a guaranteed limited supply.
[2] Portability & Divisibility.
Bitcoin can be sent anywhere in the world within only a few minutes and it can be stored on a USB stick or even memorized (seed phrase).
Gold is a heavy, expensive and difficult to transport metal due to the cost.
Bitcoin is a million times more practical to use.
[3] Verifiable Authenticity.
Bitcoin has a fully auditable supply and may offer more transparency than fiat standards.
Gold needs an assay as there are counterfeit gold bars.
Bitcoin takes away the need for trust.
[4] Faster & Cheaper to Transfer.
Bitcoin cross-border transfers take ~10 minutes (Lightning Network: seconds).
Gold: Takes days/weeks, high security costs.
Bitcoin is the perfect money for a globalized next monetary system.
[5] Resistance to Confiscation.
Bitcoin can be kept in a wallet by oneself (unlike banks and vaults).
Gold is a simple metal to confiscate. For example, in 1933, the United States confiscated gold.
Bitcoin is a self-sovereign currency.
[6] Digital-Native Store of Value.
bitcoin is an ideal currency for the internet age.
Yellow metal acts as analog asset in digital world.
Bitcoin is more suitable for the economy of the future.
[7] Institutional Adoption
Bitcoin: The institutional investment wave carries purchase agreements from BlackRock Fidelity MicroStrategy and El Salvador.
Gold: Central banks comprise the largest group of owners but the population of Bitcoin holders grows at a slow rate.
Many believe Bitcoin will dominate the "digital gold" concept.
Conclusion: Bitcoin Is the Gold 2.0
The original trustworthiness associated with gold has received enhancements from bitcoin through its features of digital scarcity and portable asset value and decentralized operation. The future of digital economics suggests bitcoin will surpass the role gold serves as the leading store of value.
Please share your thoughts about bitcoin and gold.
