Bitcoin is one of the most talked about assets today and with its value only increasing, many people are asking: Is Bitcoin the new gold?
If you pushed us to even the scale, it’s impossible for a layman to understand the workings of Bitcoin. Gold on the other is a far easier conquest?
On this note we lean towards Gold as opposed to bitcoin because of three main reasons: It’s physical form (gold), tradability (gold) and understanding (gold). When considering these qualities, it becomes clear that cryptocurrency isn’t ready to take over gold just yet.
The value associated with gold is something which we believe has been built on trust and history. Gold-backed currencies have been used for centuries and its scarcity makes it a very powerful asset indeed. Although bitcoin does not need a network in order to be traded, gold is far more accessible both in terms of access point and understanding.
Bitcoin can’t really compete with this sort of thing. It’s true that there may be a place for cryptocurrencies at some point in the future but right now, they serve as an alternative to fiat currency rather than a replacement for stocks or precious metals like gold.
People who see the value in cryptocurrency are saying things like: “such digital scarcity makes bitcoin potentially uncensorable.” But let’s why gold isn’t censored… People are willing to die for it. They are willing to put their lives on the line for it, so yes, there is nothing like gold right now.
So far it has had its ups and downs but is beginning to gain widespread attention as more people become familiar with the concept and see potential benefits.
One of those potential benefits is gold 2.0 – i.e. a reliable store of value that will hold its worth through market volatility because it is not tied to any physical resource or government regulation, much like how standard fiat currencies are not backed by physical commodities either .
Since the inception of Bitcoin there have been many arguments made about whether or not it can really be considered “money” due to not having government backing which would normally afford that designation. For now it can be called currency but there are certain characteristics that would need to be met in order for government regulation to allow it to stand on an equal playing field.
One of those characteristics is a stable value – which is something Bitcoin has been working hard on ever since March 2013 when the price dropped from $230 to less than $70 within a day according to CoinDesk . Although the price has bounced back and forth over the years, it seems as if market cap, overall trading volume and global awareness have been on a slow but steady rise over time.