Bitcoin V/S Gold:Which one is the future?

Bitcoin vs Gold, speculative assets, or is there more? We will see why they are considered by many to be a store of value. Bitcoin and Gold have some differences, but in a way, they are the same. We will see why they are considered by many to be a store of value and a barrier to inflation. Should you have gold or Bitcoin, or do you need to avoid it? Bitcoin vs Gold? Let's take a look!

Short History of Bitcoin and Gold

Gold has been a means of exchange for thousands of years. It was first used as money by ancient Egypt 5000 years ago. The earliest period of gold was like money in ancient Greece. They were the first to begin cutting coins from gold and from commodities and services with precious metals. From the ancient Greeks, until 1971, Gold was used as money, or paper money (IOU) was supported by Gold.

Bitcoin (BTC) cryptocurrency is open-source software that shares some of the Gold features. That is why BTC is also known as Digital Gold. Bitcoin is a very new asset, as it was created in 2009 by an unknown man named Satoshi Nakamoto. Eleven years after its creation, Bitcoin gained huge profits and is now being used as a payment method especially online.

 Supply & Future Availability

The highest availability of Gold is unknown and ranges from 160,000 tons to 2.5 million tons. Despite this, Gold is still one of the world's rarest metals. The amount of gold used per year is about 3000 tons. The USGS (U.S. Geological Survey) has found that the current known resource depletion is 52000 tons. There is a lot of gold on our planet and in the universe but it is not powerful in the economy, or we do not have the right equipment to mine. Gold on earth is much higher as seawater contains precious metals, but at present, we cannot extract it. There is also gold at the bottom of the ocean and in the planetary atmosphere. Unfortunately, neither can we, nor will we ever do so.

Bitcoin has a fixed offer of over 21 million coins. Like Gold, Bitcoin is also mineral. But instead it should be dug into the ground; the process is done by computers following the protocol law. That is what makes Bitcoin a scarce commodity in the world. At the time of writing, Bitcoin mining is worth 18.5 million coins, and making up the current blockchain earnings, the BTC inflation rate is 1.9%. The next change will come in 2024 when the block prize will be halved, and the inflation rate will be less than 1%.

More speculative assets than money?

Today we use a government-issued fund called FIAT. They have no internal value and are important because we pay our taxes with them. FIAT funding has endless supply as governments and Banks can do as much as they want. That is not a bad thing at all if the amount of money printed is distributed equally to the public instead of being given to big players like companies and hedge funds. Withdrawals from the authorities are what make Bitcoin and Gold an speculative asset.

Today most people and large institutions buy Gold paper contracts with a promise from the keeper that they can get a visible metal if they want. The problem with that is the same contract sold to hundreds of other investors. In other words, every once in a while the visible Gold is sold as an ounce to a hundred other people.

Bitcoin is used in the same way. Because the BTC offer is reflected in the blockchain, this practice is very complex and is done by trading Bitcoin in cryptocurrency trading. Most cryptocurrency transactions use false volumes, and usually the highest cash offers are traded every 24 hours. Of course, this could not be researched because these exchanges have been placed in one place, and most sales orders are false and in use. By exploring the Bitcoin blockchain it is easy for anyone to see that there are millions of currencies that have not gone on for several years.

Utilizing Bitcoin or Gold as a vehicle of trade 

We are in a computerized age now, and the vast majority of the shopping we do is on the web. Indeed, even our nearby stores scarcely acknowledge cash now. In such manner, Bitcoin enjoys an unmistakable upper hand over Gold since it is easy to introduce a BTC wallet, and you could make installments. Numerous sites, cafés, hair stylists, and other generally little to medium size organizations are tolerating Bitcoin as an installment strategy. Regardless of whether vendors don't acknowledge BTC as an installment strategy, some charge card suppliers are making it conceivable. 

Lamentably, practically no business acknowledges Gold as an installment strategy. It is generally utilized in industry, adornments and as a store of significant worth. There is an organization called gold cash, which is giving pre-loaded cards permitting you to spend your Gold. The interaction is that the organization is putting away your Gold. At the point when you make a buy with the card vendor gets FIAT money. Then, at that point, the equilibrium is deducted from your Gold holding. For instance, f you have 10 grams (roughly $530) of Gold put away with Gold cash, and you choose to purchase something for $53 utilizing the charge card, your Gold equilibrium after the buy will be 9 grams. The negative thing here is another person putting away the Gold for you. 

Bitcoin versus Gold Conclusion 

Both Gold and Bitcoin have up-sides and negatives. Assuming you need to have something with a long history of significant worth, Gold is the unmistakable champ here. The valuable metal is likewise ideal for protection. On the off chance that you wish to make an untraceable installment, nothing beats Gold, Cash, and valuable metals overall. Gold additionally could be considered in the situation of power or web blackout. Indeed, even against an EMP occasion when the Bitcoin won't work. On the opposite side, in the event that you like to have something scant with a decent inventory auditable whenever,

Bitcoin is the reasonable champ. For making installments and sending exchanges across the world without the association of outsiders, BTC is additionally the best approach. Leaving an extremist system is likewise conceivable with Bitcoin and testing to do with Gold as its massive, weighty, and simple to be distinguished. 

As should be obvious, there is no unmistakable victor here. Both enjoy benefits and impediments to one another. Considering the worldwide circumstance right now with the upgrade from the national banks and perpetual cash printing, having Bitcoin or Gold perhaps is a smart thought.

In the Next blog, we will talk about ERC20 Token