Gold and Bitcoin

  • Gold is a store of value and has been considered a safe haven for centuries. Although this still holds true, Bitcoin is now also an asset that both individuals and institutions trust, primarily because of its values and ideology.
  • Gold is tangible, while Bitcoin is a digital asset.
  • One of the reasons we’re comparing gold and Bitcoin is because they’re both limited resources. But there is a key difference.
  • With gold we can roughly estimate how much has been extracted and circulated but can’t tell with any certainty about what remains underground. Bitcoin couldn’t be more different. We have a very accurate picture of how much Bitcoin will be circulated and what time period it will be produced in. A total of 21 million BTC can be mined and all of this will be released by 2140. At the time of writing, 18.6 million BTC is in circulation.
  • Gold isn’t just a value storage tool — it also has uses in electronics, medicine, jewelry and other items due to its chemical properties.
  • Bitcoin was brought to life with blockchain technology, which at the same time triggered a new financial system.
  • Because of the geographical location of the reserves and legal and commercial rights of the land, production and processing is key to gold’s supply.
  • Bitcoin is a decentralised system free from political pressure and control. It is not susceptible to excessive inflation either — the supply cannot be effected and the halving controls the rate at which coins are mined.

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