Bitcoin is commonly referred to as gold and even dubbed ” Digital gold”. However, there are significant differences between the two class assets. Here are a few of the differences ……
1. Bitcoin has a better inflation hedge
Over the past 5 years, the price of Bitcoin has increased by 311.41% while gold has only risen by 21.84%. As the standard of living rises so does the price of Bitcoin. Bitcoin helps increase wealth and not maintain it as gold does.
2 Bitcoin wins the scarcity debate
It is uncertain when excavators will reach and locate the gold stores. Hence the supply of gold will never be known. Bitcoin has a fixed supply of 21million coins with their quantity and verified.
3. Easier access to Bitcoin
When the dollar value falls, investors run to gold and Bitcoin. Bitcoin is a more familiar option that requires less security and physical storage. It is easy to access, only needs to have a wallet and access to a cryptocurrency exchange account. With gold, one has to purchase it physically.
4. Bitcoin is easily portable
Bitcoin is virtual wealth compared to gold which is physical wealth. It is easily tradable, transferable, and less bulky. Allowing it to be a perfect asset for international trade