Want to know more about Bitcoin vs. Gold and which one to opt for??
Then you’re in the right place.
In this guide will teach you everything you need to know about Bitcoin and Gold. So that you can decide for yourself what’s best for you!!
Best thing is:
Bitcoin and Gold both are real money!!
And I hope you know the difference between money & currency? It’s a no-brainer not to know this!!
Anyways, here are the things you’ll learn in this post:
- What Is Bitcoin?
- What Is Gold?
- Is Bitcoin Better Than Gold?
- Bonus: Learn about my take on it !!
What Is Bitcoin?
Just a decade back in 2009 a mysterious person known as Satoshi Nakamoto released Bitcoin’s whitepaper.
Little did he know that he will change the world forever.
Bitcoin-a digital peer to peer cash system is a cryptocurrency launched in 2009.
It purely exists on the internet and has no physical presence like gold.
But wait – there’s more:
Bitcoin is uncensorable and extremely limited in supply. So-much limited that there will never be more than 21 million bitcoins ever.
To put it in another term:
Bitcoin is an internet protocol for value transfer that has been made possible through cryptography- branch of computer science and maths.
So as long as you have internet connectivity, you can receive/send any amount of bitcoins to anyone anywhere in the world, and there is nobody to stop you.
It gets better:
Bitcoin unlike the fiat money of the world (for example USD, EUR, GBP) cannot be just printed. Thus its debasement isn’t feasible and neither profitable for anyone trying to do so.
Satoshi Nakamoto knew the nature of the corrupt banking system and thus created an alternative to the traditional banking system.
He even left his message for the world in the first Bitcoin’s block that he mined.
Check this out:
But have you wondered why people started comparing Bitcoin & Gold?
Well, that because of their properties.
So stick around; we’ll talk about them later in this article but for now, let us see Gold.
What Is Gold?
Gold is pure money.
And it has been so since 700 BC (long time, isn’t?)
Gold is one of the scarce metals available on earth, and it is formed due to supernova effect billions of years ago!!
More definitely it a yellow precious metal with the chemical element of atomic number 79. This yellow metal is also mostly used in jewellery, decoration and was used to guarantee the value of currencies like USD, EUR, etc.
Beyond that Gold is limited in supply, divisible, and counterfeit-resistant which makes it more valuable.
I know deep down you also know this:
- The scare the thing is, the precious it is!!
And that’s where I think it should hit you that Bitcoin is more or less similar!! Isn’t it?
Bitcoin vs. Gold: Bitcoin An Alternative To Gold
Let me show you how:
Bitcoin and Gold have a lot of similarities, some of these are:
|S.No||Bitcoin Vs. Gold-Similarities|
|1||Investments Are Speculative In Nature|
|3||Can Have Safe Heaven Properties To Safeguard Yourself In Economic Collapses|
|4||Limited In Supply|
|5||Costly To Mine|
|6||Impossible To Counterfeit|
Because of these similarities, only Bitcoin has been referred to as Digital Gold.
But there is more:
Now that you have looked into similarities it is logical to look into some of the differences also between Bitcoin and Gold.
|1||Gold Is Physical||Bitcoin Is Digital & Thus Not Tangible|
|2||Gold Has Thousands Of Years of History Backing It||Bitcoin Has A Decade Old History|
|3||Gold Is Rare||Bitcoin Is Rarer|
|4||Low Risk & Low Return||High Risk & High Return|
|5||Less Volatile||Highly Volatile|
|6||Under Control Of Futures Market||Not In Government Control|
|7||Easy To Confiscate||Difficult to Confiscate|
|8||Difficult To Send/Receive||Easy To Send/Receive|
Do you know which angle it is?
But apart from these differences/similarities there some more angles through which you should look at Bitcoin vs. Gold comparison.
If not then let’s get in and discuss that in the next section…
Bonus: Learn about my take on it !!
One of the angles is of, INVESTMENTS !!
Can I be honest with you?
I believe Bitcoin is superior to Gold in this respect because of several reasons. And some of those reasons I am going to reveal with you today:
- Bitcoin Is Extremely Rarer Than Gold
When I use the word ‘rarer,’ you should think, why is it so?
Well, see these stats to put things into perspective because I think just owning 1 BTC can bring you into the world top 1% Bitcoin holders.
Check these out:
The US has 11 million millionaires. Only ~300k people own at least 1 Bitcoin. Chinese demand isn't going away, but even if it was, so what?
— Ari Paul ⛓️ (@AriDavidPaul) September 16, 2017
300k is roughly the number of addresses with >1 BTC; so it's upper bound. Real # definitely lower.
— Ari Paul ⛓️ (@AriDavidPaul) September 16, 2017
Moreover, it is hardcoded in the BTC protocol that there will never be more than 21 million bitcoins in existence.
- Bitcoin Price Likely To Rise In Recession
In my opinion too, in an economic meltdown like 2008 or 2000, Bitcoin’s value should skyrocket.
Let me explain why?
Well, it is likely to happen because it is limited in supply and thus deflationary in nature. Also, the government cannot just print new bitcoins so it is highly likely that a humongous wealth transfer might happen in Bitcoin’s market cap in a situation of uncertainty.
Also, a lot of many millennials around the world are now on the internet, ever than before and their natural inclination is towards digital hard assets like Bitcoin.
Further, it also evident from this random poll by Thomas Lee that Bitcoin will perform well in a recession like situation.
CRYPTO POLL (2 of 6 questions):
Do you think Crypto prices rise in a recession?
— Thomas Lee (@fundstrat) September 30, 2018
- Bitcoin’s ROI Will Blow Your Top
Bitcoin’s ROI is just staggering, and Gold with its 10% average annual increase comes nowhere close to Bitcoin. Here are some of the ROI stats for BTC:
|Year||Price at the Start of Year||Price at the end of Year||Growth in %|
|2018||$952.5||$6000 (To date)||529%|
- Asteroid Mining Will Produce More Gold, Bitcoin Mining Fixed
Gold supply can be inflated as miners keep finding more avenues for mining Gold on earth and in the deep sea. Apart from that asteroid mining, i.e., mining of near-earth space objects will produce more gold in coming decades inflating away the price of gold.
- Bitcoin Is Catching Adoption
Bitcoin transactions in terms of value transfer and in terms of portfolio allocation are on the rise. Check out these stats for more insights:
% of respondents who own Bitcoin or a similar digital currency in 2018
ING Intl Survey
— ian bremmer (@ianbremmer) August 20, 2018
Bitcoin has been clearing more tx volume than global gold markets since early 2017.
BTC: on pace to process $1.1 trillion in 2018 transactions
Gold: on pace to process $0.4 trillion in 2018 transactions
— Kevin Rooke (@kerooke) August 15, 2018
These stats show that BTC transactional value is dwarfing Gold by a big margin and anyone who is ignoring this would regret in coming times.
Here’s The Next Step…
Now I want to turn it over to you for one question:
Let say you have USD 10,000 at your disposal and you have read this post!!
What would you do?
- Will you invest in Gold or Bitcoin?
Well, if I were you, I will certainly not overlook Bitcoin because Bitcoin money-an alternative to gold is the hardest form of money humanity has seen so far.
Now, I think investing in gold or Bitcoin should no longer be an eluding question in your mind!!
Because by data Bitcoin is a vastly better investment than Gold at this point in time.
But here’s the secret and a confession too:
By any means, I am not writing-off Gold, if anyone does? Then do not heed to them.
Gold has been the hard money since the time without beginning, and that’s why if you are someone who’s quite skeptical about Bitcoin, should invest in gold.
But if you have some appetite for risk, then you should diversify some capital in Bitcoin first and then in Gold
So that’s all from us in this definitive guide.
We hope this is useful and if it is, do share it with your friends & family !!
Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.