Will bitcoin replace gold?
|Slavomír Kaňuk|source|574x
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Will bitcoin replace gold?

Will it be better to store value in gold or in bitcoin? This question pops up more and more often on crypto conferences all around the world. Bitcoin, the most popular digital asset, steers discussions whether it's wiser to store value in bitcoin or in old school gold for long-term periods. Ongoing discussions suggest, in the times of digitization, everything potentially digitizable will eventually undergo this process. Let's consider more in detail how gold and bitcoin supply relates to each other in the long term.

It's difficult to both produce and counterfeit gold and its polished look just increases its attractiveness. Limited supply on Earth makes it inflation-proof. It has served very well several times, especially in times of uncertainty, being a safe harbour protecting stored value though not yielding at the end of a quarter.

So the main argument in favour of storing value in digital assets instead of gold must be strong and other than just saying the digital age changes everything.

Bitcoin supply is finite. The most powerful network of computers on Earth ever keeps this “rule” of the finite supply. The same network secures sending and accepting of bitcoin transactions. 21 million bitcoins is the final predetermined amount of this digital asset and its price has fluctuated so far, but the supply will not.

By the way, did you know bitcoin transactions are conducted in minutes, both during working week and at weekend and that the transaction amount isn't related to transaction fees?

Now regarding the latests updates about gold supply. There is unlimited amount of gold in universe. No way this is some kind of sci-fi movie, but universe reality backed up by research, disclosing it contains many bigger or smaller asteroids composed of metals such as gold, nickel or iron. Just one such asteroid would contain more gold than has ever been mined on Earth and its estimated value greatly surpasses global GDP.

Nasa has been planning a mission aimed at mining of precious metals beyond Earth. Once prices of precious metals rise astronomically, mining beyond Earth will make sense economically too. Moreover, NASA is not the only one setting off to deep universe exploration and its opportunities. Chinese space domination ambitions and Elon Musk's rocket empire expand what's possible in space industry.

New sources of gold, play against it, especially when it comes to its fundamental function, which has kept it so popular until today - store of value.

Do you think bitcoin is new digital gold?


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