Many people have heard about Bitcoin by now. Some have already decided they are scared while others have already decided they are fascinated by it. So, what exactly is it?
The idea of a currency being a store of value is not new. But what is the best store of value? The one that has proved its worth throughout time – gold.
Bitcoin is the tiniest, tiniest fraction of the cost of an ounce of gold. There will never be more than 21 million bitcoins in circulation, and there are currently 17 million bitcoin users in the world.
Bitcoin has been an extremely lucrative investment for those who got in early enough (or late enough) to buy at bargain prices; after it fell below $1,000 this past December, it soared past $10,000 last week. And if current trends continue – i.e., if bitcoin does become less volatile and more widely accepted as a legitimate currency
Bitcoin was created in 2009 and it has been around for a decade. As we all know, nothing lasts forever. But Bitcoin still stands as the new and everlasting Gold with so many advantages to offer.
Why Bitcoin is the New Gold of Today
Bitcoin is decentralized and not under the control of any government or central bank. It is also anonymous and convenient to use with so many wallet providers available on the market such as Blockchain, Coinbase, Xapo etc.
The most important thing is that Bitcoin has survived all these years without any major hacking incidents. On the other hand, fiat currencies have proven time after time that they are not immune to hacking attacks, which can lead to devastating consequences for a country’s economy.
Last but not least, people use their own money to invest into Bitcoin rather than trusting their country’s currency or a currency regulator like the U.S Federal Reserve.
You will always be able to spend Bitcoins, unlike gold. You will also get a nice return on capital if the value of Bitcoin keeps increasing. It’s not correlated to any other asset and its value is derived from demand, so it’s very safe to hold. These are some of the reasons why Bitcoin is like gold.
There is a finite supply of bitcoins that can be mined. This means that the supply will last forever. If the demand is infinitely higher than the supply then this will also push up its price.
The Bitcoin transactions are irreversible. This makes it much safer to use compared to cash because you can’t lose your money if you mistakenly send it to somebody else’s account.
Bitcoin transactions are anonymous, which makes them desirable for those who don’t want their identity to be revealed or monitored by other people or organizations. Nobody knows who owns any address, what is stored at any address or who sends what to whom.
People can keep their Bitcoins in a hardware wallet, which is not only protected from hackers but also from you by design – one of the unfortunate reasons why people lose their money with Bitcoin
We live in a time where the concept of ownership has been changed by technology. The idea of owning something is now becoming obsolete. Things can be owned for a few minutes, hours, days, but not forever. The only thing that appears to last forever in this day and age is Bitcoin.
Bitcoin has made the idea of owning something in the digital world possible. It is an interesting phenomenon that will change how we think about money and what money means to us from this point on.
It’s more resistant to fraud. It allows faster fund transfers around the world. It’s safe.
It is inherently safer to mine than physical gold and less energy intensive. Physical Gold has always been too expensive to be mined or owned by both the middle class and the lower class of the society.
Gold has brought about and entrenched the social classification system, it has brought with it genocides, massive harm to the ecosystem by polluting of the air around cities located near mines. Poisoning of the aquifer in places like North California in which the International Indian Treaty council states – “During the California Gold Rush, miners dug up 12 billion tons of earth, excavating riverbeds and blasting hillsides in their fervor. They also used mercury to extract gold from the ore, releasing an estimated 7,600 tons of the toxic chemical into Northern California rivers and lakes. The amount of mercury required to violate federal health standards today would be equivalent to one gram in a small lake”.
Bitcoin today has not and would never bring about the amount of chaos and mayhem brought by physical gold.
Bitcoin is the new Gold. It is not easy to predict how much it will be worth in the future. But you can always say that it will be worth more than today.
The system of bitcoin is different from any other currency in this world because there are no governments or central banks that control it. Bitcoin’s value can go up or down, but no one knows for how long.
Different currencies are regulated by the market, while bitcoin is regulated by algorithms designed by hardworking coders around the word. This gives people a sense of security about their investment because there are people who have taken responsibility to make sure that you get what you give for this cryptocurrency.
Bitcoin may not be a new thing anymore, but it is still going strong. With the rise in demand for cryptocurrencies and a finite supply, many people see Bitcoin as a safe haven of sorts.
Bitcoin is not only useful but also scarce. The finite supply of Bitcoins has led to an increase in demand for them. Bitcoins are not tied to any single country’s economy, so they are seen as more stable than currencies that can be devalued at any time due to changes in government policies or popularity. For the same reason, the value of Bitcoins does not fluctuate wildly like currencies do in times of economic instability.
Bitcoin has been around for over 10 years now, which means that it has withstood the test of time and proven its worth when other currencies have failed in maintaining their
Bitcoin is poised to be the new gold. Bitcoin is a digital currency that is not backed by any government or central bank, so its value derives from its use as a payment system.
Fiat currencies are backed by governments, so their value will vary depending on the country of issue. Bitcoin derives its worth from being accepted as payment for goods and services, which shows stability in its price. Bitcoin has shown an overwhelming acceptance since it first came into existence nine years ago. The volatility of Bitcoin over the past few months has also been interesting to watch because of how it affects other digital currencies that are tied to Bitcoin.
The word “Bitcoin” has been trending for the past few years. The cryptocurrency is not just a trend that will quickly fade into oblivion. Bitcoin, or BTC, as it’s also known, is the first and only decentralized digital currency.
People who want to invest in Bitcoin should keep these things in mind:
- Bitcoin does not have a central authority control it
- It was created by an anonymous person or group of people who go by the name of Satoshi Nakamoto and nobody knows where they are from
- Bitcoin mining is what makes its transactions secure and verifiable
- Its supply is capped at 21 million BTC and there will never be more than that
Bitcoin, the future’s cryptocurrency.
Bitcoin is a decentralized currency that exists in a digital world. It can be mined by anyone who has a computer and internet access, and it has a finite supply of 21 million units- almost 12 million already in circulation. That means there is no government or central bank controlling the money supply, and there’s no way for any person or institution to devalue or take down Bitcoin from the outside.
Bitcoin was created by an unknown person using the alias Satoshi Nakamoto. In 2008, Satoshi published a paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” on an open-source developer chat board describing how to create a peer-to-peer electronic cash system that would not be tied to any country or central banks’ monetary policy
Firstly, bitcoin is a finite resource. In fact, there will only ever be 21 million bitcoins mined. Gold on the other hand, is an infinite resource and can be mined for as long as human beings exist. Secondly, bitcoin is a lot more portable. You can carry a fraction of a bitcoin in your pocket and not have to worry about it being stolen from you like you have to worry about gold being stolen from you. The third reason that many people see bitcoin as being better than gold is that it isn’t controlled by anyone or any government.
Secondly, the way bitcoin transactions work makes them immutable and irreversible – they cannot be hacked or reversed by any government entity. Thirdly, because of the decentralized nature of blockchain technology, no one needs to rely on another person or organization to hold
The reasons for this are many, but the most significant one is the blockchain’s security. The blockchain has no single point of failure and it is virtually impossible to hack.
Bitcoin is not the only digital currency out there, but it has been said that it will be the last currency ever created.
The Reasons continue
Arguments to prove that bitcoin is the new gold:
- Bitcoin is not dependent on any one particular country’s economy or monetary policy
- There are finite number of bitcoins (21 million)
- Bitcoin cannot be inflated by government mandate like other currencies can
- Bitcoin supply is not increased by mining activity in the way that it is with gold, creating a supply/demand imbalance
Bitcoin is the new gold, the digital. The 21 million bitcoin limit makes it an even more hard asset than gold.
There are also some specific advantages of bitcoin over gold. For one, there are no intermediaries involved in transactions with bitcoin so there is no need for a third party to act as an intermediary, whereas there is still the need for a third party when you trade in gold
Bitcoin also benefits from its deflationary nature since supply is limited and it has proven to be more stable than most other currencies on the global market.
Some drawbacks to bitcoin are that it has been proven very volatile and it doesn’t have many advantages over its physical counterpart–gold. Gold remains significantly easier to use for transactions that don’t involve high values of money because of price volatility issues with bitcoin.
There are many reasons why Bitcoin is the new gold. For one, the algorithm used in creating it makes it impossible to ever be hacked. It is protected with layers of security to prevent any intrusion or damage to its system.
It has also never been counterfeited. This feature ensures that no one can create their own Bitcoins and undermine the value of this digital currency.
Bitcoin transactions are also completely anonymous, which means that you will never have to worry about your bank account being hacked or credit card information being stolen.
Bitcoin is the new Gold.
Bitcoin is volatile, just like gold. Bitcoin shares some similarities with gold because it acts as a store of value and can be used as an investment vehicle. It doesn’t matter if bitcoin is new or old, it has the potential to be the next gold.
Bitcoin is an excellent store of value because it is decentralized, not dependent on a country or central bank, and not reliant on any physical goods.
Bitcoin is a digital asset that can be used to buy things electronically without incurring large fees. Unlike other commodities that are dependent on the scarcity of raw materials for their value, Bitcoin’s scarcity lies in its programming, which limits the number of Bitcoins that can be mined to 21 million.
Bitcoin has yet to reach its peak lifetime supply of coins, so it is proving itself as an excellent store of value because it has no foreseeable end date. If something was limited in supply but also had no foreseeable end date then it would become more valuable over time as demand increased relative to supply.
Gold has been the go-to investment for centuries; it has never gone away and always will be around. Bitcoin, too, is an investment that is here to stay and will only increase in value as more people adopt it.
Bitcoin has become a safe bet for many individuals and companies alike due to its revolutionary property of decentralization. It is not controlled by any one party; this makes it better than any other financial option out there, which can collapse due to corruption or greed (i.e., Enron).
The blockchain is the new technology that will change our future. Blockchain is a decentralized, peer-to-peer digital ledger that is open to everyone and operated by no one. It allows users to store information without having to trust each other or rely on centralized third parties. The blockchain was invented by Satoshi Nakamoto in 2008 for use in the cryptocurrency bitcoin, as its public transaction ledger.
Bitcoin has been the world’s best performing currency for more than 3 years now. The gold of tomorrow? Some say yes!
The truth is, the cryptocurrency no longer requires an explanation. In a few short years Bitcoin has risen from tiny start-up to one of the most notable technology stories of our time. It has made early adopters rich and various big businesses have started taking notice. Some even suggest Bitcoin is the new gold. I would argue that Bitcoin is something much greater: it’s the next evolution in sharing value and maintaining it.