When it comes to investment, gold has been considered the gold standard for investment. Did you get a laugh out of it? Hopefully, you did, as golden jokes are tough to come by. Still, on a more critical note, gold is one of the most common and safest forms of investment. People from the lower middle class to the Richie riches have invested in gold for ages. However, it seems a new alternative has stepped in to challenge the Gold Superiority.
Yes, I’m talking about Bitcoin – The cryptocurrency that has been in news headlines and hundreds of hot debates in the past few months. In just six months, the world has witnessed both the volatile nature of bitcoin and the power it holds simultaneously. Despite the glaringly visible issues with this digital currency, many people still look at cryptocurrency as the future of money. And when it comes to cryptocurrencies, Bitcoin (BTC) is undoubtedly OG in it and there are several ways to make profit from Bitcoin.
When it comes to investment, gold has for long remained the haven. Besides, it added massive value to one’s portfolio. However, as per various reports, gold has suffered a drop in its value that may seem ordinary, as has been the case with it for a long time. The price value of timely gold decreases and somehow manages to climb back up to newer heights. However, with the surge in Bitcoin value recently, gold has lost the de facto title of the best hedge against inflation. The title now belongs to cryptocurrencies. Like gold, silver, and other commodities, bitcoin has shown itself to be of great value in turbulent situations. When it comes to the store of value, bitcoin is currently more valuable than gold. You can learn more in the future of cryptocurrency.
At present, the market value of Bitcoin is capped at 21 million bitcoins, which is more than any other form of cryptocurrencies. It is estimated that approximately 88 percent of the bitcoins have been “mined” already. Besides, bitcoin has the edge over gold as it is free from any form of governance. It allows people to invest and withdraw bitcoins at their sole convenience. Nevertheless, there are five more important reasons that make bitcoin investment superior to gold. So, what are they?
While both bitcoin and gold have their issues and benefits, you can read five reasons that make bitcoin investment superior to gold.
When it comes to supply, people are aware of the number of bitcoins that can be mined. The number, as stated above, is 21 million that will be mined entirely and issued by 2140. However, we cannot say for sure about the exact number of gold available or by what time every gold will be in circulation. Therefore, bitcoin will hold the most supply and demand value when it comes to long-term goals because of its exact number known to the public that covers investing in bitcoin.
Any materials such as gold, silver, and even bitcoin earn their value through authenticity. However, its authenticity can be verified immediately through the ever-dependent blockchain technology when it comes to bitcoin. But in the case of gold, it may take a longer time, and also, the process is expensive compared to bitcoin.
Gold is a physical entity which means it carries weight. Also, there are more chances of gold theft than bitcoin because of the individual securities. Transferring a considerable amount of gold can be a tedious and nerve-wracking task for anyone. However, bitcoin is a digital asset, and all one person requires to transfer bitcoin is a safe internet connection. Also, bitcoin transfer can conclude in minutes instead of gold transfer that may take hours or even days.
Liquidity is the ability to convert an asset or substance into its cash value. If you look at gold, converting it into cash is never easy. However, people can easily convert bitcoins into billion dollar exchanges within a minute. Also, you can sell any number of available bitcoin comfortably. The same cannot be said about the gold where the governing authority restrictions often come into play.
Gold has been part and parcel of our lives since time immemorial. Still, we cannot use gold to purchase goods and services. For example, consider buying a smartphone in a store with a gold bar in your pocket. Now, as far as bitcoin is concerned, it only has an existence of 12 years so far. However, it has become a payment option in several places. It involves various loyalty programs and payments. Recently, even the electric vehicle maker giant Tesla also joined the list to make the transaction through bitcoins.
If we look at these five factors above, bitcoin edges out gold in all of it. The most crucial downside of it is that people have known the presence and value of gold for eons. Gold definitely will win when it comes to the trust factor in the investment. Nevertheless, despite bitcoins volatile nature, people are gradually waking up to the potential it carries. What makes bitcoin investment superior to gold is the combination of cryptocurrencies and blockchain technology.
Blockchain technology is considered the safest technology today, and with its support, the cryptocurrencies transformation is already underway. It is only a matter of time when more and more businesses and consumers alike will realize the superiority bitcoin holds over gold.
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A lone wolf by definition, a writer by heart, and a lost star with ambitions to light up the dark both inside and around me, sometimes by immersing myself into books or video games or traveling with a backpack to an uncertain destination believing that life is all about the choices we make and we don't.