Bitcoin vs. Gold: The Pros and Cons In case you missed it, the hottest debate on Wall Street is whether . Bitcoin will rival gold as an inflation hedge JPMorgan analysts recently that suggests that investors are beginning to ditch gold for Bitcoin. highlighted data We’re seeing something interesting right now. Bitcoin is eating the world, and it’s the most dominant asset right now. So, let’s first evaluate the most significant pros and cons of the Bitcoin vs. gold debate, starting with Bitcoin’s benefits as “digital gold.” Pros: Easily Sold Because Bitcoin is entirely digital, it can be easily transferred to another user and sold for its dollar or euro value. You can send your Bitcoin in person using a QR code, or you can use an exchange service that will digitally connect you with a buyer. BlackRock’s chief investment officer Rick Rieder put it eloquently; “trading Bitcoin is so much more functional than passing a bar of gold around." Favorable Demographics The world has changed. You and I are in different places on the planet, but you can read this article instantly. Gold used to be the only answer for the alternative financial system for centuries. But we live in the digital age now. The younger generation is digitally native. They want to store, transact, and use digital goods and assets. Bitcoin is the new safe-haven for millennials. Provable Scarcity Scarcity is a big part of the picture. While gold is narratively scarce, Bitcoin is scarce provably. There is a widespread belief that there is a little supply of gold. U.S. geological survey estimates that there are around of gold left to be mined. But their estimate considers only proven reserves. The probable or yet undiscovered reserves are unknown. 57,000 tons However, in Bitcoin, you can prove the exact supply. There will only ever be . There are only at the moment. You can verify it on the actual blockchain. The scarcity in Bitcoin is programmatic, transparent, and provable. Make no mistake, . 21 million Bitcoin 900 Bitcoin produced per day Bitcoin’s scarcity is superior to gold’s Now little cheerleading for Bitcoin isn’t necessarily a bad thing. But unlike your inner circle, most people are still scared of Bitcoin. So, here are my two cents on the disadvantage of using Bitcoin as a replacement for gold. Cons: Gold’s 5,000-Year History The primary factor in favor of gold is that it has an . Some gold proponents argue that Bitcoin shouldn’t even exist in the same sentence as gold. For hundreds of years, gold has dominated the safe-haven asset arena. Bitcoin is only over a decade old. For better or worse, . established record of 5,000 years gold is likely to stick around for many more generations Practical Uses Gold has two major characteristics. It is a . 50% of gold demand comes from . It is also used in many other applications such as . Gold is the king of precious metals, and it has . safe-haven investment and a luxury good jewelry dentistry and electronics clearly defined uses and demand, even without being a safe-haven investment Stability and Durability Gold is an . Bitcoin market cap is about . Gold is more recognized and preferred by global investors than Bitcoin. It has many attributes to be a stable asset. The value of gold remained high even during the government’s attempts to outlaw it. Similarly, gold is an inert metal that never corrodes and lasts forever. . 11 trillion dollar asset 420 billion Gold has as potential to survive the next apocalypse Conclusion In summary, both Bitcoin and gold offer solutions to the problem of excessive money printing. They both work for different people at different times, and they complement each other. And since Bitcoin is currently stealing gold’s thunder, . it’s interesting enough to own some too Previously published at: https://rvasilisin.medium.com/will-bitcoin-steal-golds-thunder-751cef4e0bf8
