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Digital Gold: Case For Bitcoin

by Seerat Fayaz   ·  November 18, 2021   ·  

Digital Gold: Case For Bitcoin

by Seerat Fayaz   ·  November 18, 2021   ·  
Bitcoin, often known as digital gold, has long been seen as a high-risk speculative investment for individuals seeking short-term gains. Meanwhile, gold has always been seen as a safe-haven asset.

Now, bitcoin’s meteoric rise to moreover $57,000 per coin, fuelled by fresh investments from Tesla and other major names, has some questioning if traditional assumptions about these assets are right.

Given the meteoric rise of digital currencies, Insider polled ten experts to determine if they’d prefer own bitcoin or gold for the next ten years.

Bitcoin exceeds gold as a store of value by a ratio of 100. The rest of the world is catching up, and digital money is being priced in real time. Although bitcoin has grown hundreds of percent in recent months, it is anticipated to rise even more in US dollar terms over the next few years.

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Millions of individuals who had never regarded digital currencies like Bitcoin as an alternative asset have been captivated by the crypto bull run. While gold and bitcoin are both used to diversify and store a variety of valuable assets, they are very different in many respects.

Platforms make it simple to trade Bitcoin and other digital currencies. Progressive multinational corporations have begun to accept bitcoin payments, and champions such as Tesla have taken an active role in promoting it. Some of the significant differentiators include the liquidity, accessibility of exchange, and widespread use in the modern economy.

Gold serves a relatively defensive purpose. It holds value. Whereas, Bitcoin and other currencies are meant to serve several functions.

Bitcoin, like gold, has protective properties. But it also has aspirational characteristics. Bitcoin appears to have the ability to reach multiples of a moon-shot. Nobody believes gold will skyrocket. Bitcoin, unlike gold, has a finite supply. No amount of desire can change it. There is no wiggle room.

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