Bitcoin vs Gold
Bitcoin vs Gold
Bitcoin vs Gold: Bitcoin is frequently referred to as electronic gold. Will the most valuable cryptocurrency reverse the value of actual gold?
While gold is thought to have a market cap of over $11 trillion, Bitcoin currently has a market cap of over $366 billion. To surpass the market capitalization of gold, the value of bitcoin must increase more than 30 times.
According to a Twitter bot that compares the price of Bitcoin to gold and the market size of both currencies, Bitcoin has recently advanced by 3.32% toward its goal of turning the shiny metal.
The digital gold?
- Both bitcoin and gold are utilized as a store of value and a medium of trade.
- Jewelry making is another application for precious metal. But gold is difficult to store and move due to its unique physical characteristics. Bitcoin transfers more quickly since there are no physical restrictions on it. Bitcoin also does away with the requirement of using a mediator in transactions.
- A bar of gold can also only be authenticated by experts, whereas Bitcoin can be verified with a few internet clicks. These elements have led the neighborhood to assume that the flip is unavoidable.
Bitcoin vs Gold: Is there no intrinsic value backing BTC?
- According to economist Peter Schiff, Bitcoin is not supported by anything with inherent value. In a podcast, he said:
- “In actuality, more people purchasing Bitcoin is what will determine its true success. The only way its pricing will increase if you possess it is if lots of your friends or coworkers buy it.
- Bitcoin is not a financial asset like stocks, bonds, or real estate where you can earn rent, a dividend, or interest. It’s not a commodity like oil, which can be used to produce energy, where you can use it for something. It’s not like gold, which can manufacture jewelry, carry electricity, and be used for various industrial purposes.
- Several people disagree with Peter Schiff’s anti-Bitcoin attitude, most notably Michael Saylor, who considers Bitcoin good with practical uses. The co-founder of MicroStrategy made the audacious claim that Bitcoin’s market valuation will approach $100 trillion, vastly outpacing that of gold.
- The Bitcoin public and the community, with an anti-Bitcoin attitude offer various viewpoints. The outcome of the prediction game will only become apparent with time.
Also Read: Bitcoin (BTC) Price Prediction