For hundreds of years, gold was the number one safe-haven asset, while Bitcoin was launched just over a decade ago. So why do we even discuss which is better, gold or Bitcoin? How much is all the gold in the world worth? Here we have a pretty big difference. Bitcoin has an approximate 442 billion dollar market capitalization at the time of writing, equal to about 2.5 percent of gold’s estimated value, which is over 11 trillion dollars today.
With institutional investors jumping on the Bitcoin bandwagon, cryptocurrency investment has become the norm. According to some experts, It’s no longer a speculative retail bubble. Money managers and corporate treasuries are using Bitcoin as a hedge against currency debasement.
Bitcoin has been nicknamed “digital gold” by many, including billionaire crypto investor Mike Novogratz. This is because Bitcoin shares many similarities with gold, one of which is a finite supply. Gold’s market supply, while not finite, is scarce. Bitcoin has a limited supply of 21 million units. This scarcity may be a contributing factor in its significant rise in value in recent years.
Gold is a physical asset. Bitcoin, on the other hand, is a digital one. Both Bitcoin and Gold are scarce, but gold does not yet have a ceiling to supply. Gold is a tangible asset that boasts a history of fiat stamping that spans 7000 years from the kings and emperors of old to the bankers of today. This makes it easy to identify what drives demand in the Gold Market. The Market demand for Bitcoin, by contrast, is not as clear and is based purely on price speculation, buy-to-hold strategies, and the underlying blockchain technology itself. Gold also has more institutional ties than Bitcoin, and this affects its volatility as well as how governments regard either of them.
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In conclusion, it can be argued that while Bitcoin has been used as a medium of exchange, neither Bitcoin nor gold meet all the functions necessary to be considered ‘money’ and therefore, neither fully satisfies a utility as a currency. Ultimately, it depends on your goals. Bitcoin is a better investment for potential short-term gain, but you also have the potential to lose a lot of money. Gold, however, is a stable investment that is almost guaranteed to return on your investment in the long term. However, You can make an investment through a Bitcoin Loophole bot to make good profit from it. You can check Bitcoin Loophole reviews by users and experts to know more about this unique platform.
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