Is Bitcoin really a new form of gold? Have you ever wonder that?
There are many similarities between Bitcoin and Gold, certainly. But there are also differences between these two valueable objects.
Let’s see how they differ and what they have in common.
1) Accepted and respected forms of value
Bitcoin and gold are both used as a form of value to store, invest, buy goods and services… Each is durable. However, Bitcoin requires an access to internet, and there is still a little chance the internet will be inaccessable for a period of time. And you know that does not happen to Gold.
Although Gold’s a precious metal, it would be worn if it’s handle without care. Bitcoin are quite formidable in composition.
Both are quite scare. The maximum number of Bitcoin is 21,000,000 units. Nearly 15,000,000 Bitcoins have been created. Traces of gold are found in many places on Earth, but it’s difficult to find a considerable amount of this precious metal.
Both Bitcoin and Gold are quite recognizable. Bitcoin is a decentralized system, you can’t fake Bitcoin. While Gold sometimes needs to be tested for its purity.
5) Commdity Assets
Each can be stored as value. Both can be required through internet. Gold is bought and sold online every single day. Bitcoin is traded online. Gold has larger network of exchanges than Bitcon has, but Bitcoin exchanges are rapidly growing day by day.
Because of its weight and bulkiness, gold can’t be transferred as easily as Bitcoin which is can be transmitted from one address to anothet in much shorter period of time.
Both Gold and Bitcoin can be divided. But Gold can’t be broken down with easy like Bitcoin.
8) Intrinsic Value
Some people say Gold has more intrinsic value than Bitcoin due to its utility. While Gold is used in everything from spacecrafts to jewellery and medical equipments, Bitcoins are limited to their functionality as a cryptocurrency. However, it can be argued that Bitcoin has intrinsic value due to the effort
Bitcoins are created by computers running software while gold is naturally found around the world.
Gold is tracked through a worldwide tracking system that preserves its value as an investment. Thanks to this system, it’s much more difficult to fake or steal it. While tracing Bitcoin is quite difficult as it was created to serve as an alternative to regular currency and evade government oversight.
12) Legitimate Currency
Bitcoin is growing in popular as a cryptocurrency that suffices as a form of money. Some merchants accept Bitcoin along with other more traditional currencies. Gold is not accepted as a form of currency. Though some have used gold for bartering purposes, gold is not commonly used to purchase items.