Gold has been one of the most common forms of investing in the past years for many reasons that include the rate with which the prices were going up and it is relatively safer as well, to invest in this valuable metal. This has been going on for centuries, all over the world while the other ways to invest started evolving. One of the recent additions to the list of other efficient ways of investing is getting popular with time and is nothing but Bitcoin, among other cryptocurrencies. And now, some people have started to think that this primary investment element called gold will soon lose its place in Bitcoin.
Earlier as well, gold was often compared to bitcoin by a number of analysts and people from the industry, while trying to draw some kind of a connection between the natures of these two entirely different elements. Some people are even calling the bitcoins as nothing but digital gold, because of some of the similarities that were found between the two.
According to Lou Kerner, who is the co-founder as well as the partner at the company CryptoOracle, Bitcoin is expected to reduce the value of gold in some areas but only to a certain extent. He also added that Bitcoin is relatively better than traditional gold based on its current performance. Accordingly, it is therefore important to remember that there are several trading bots and platforms such as Bitcoin Prime that can help both naïve and experienced traders to trade cryptocurrencies like Bitcoin with ease. However, it is vital that you do some research into whichever platform you choose before investing as not all platforms are the same. For instance, if Bitcoin Prime interests you, this Bitcoin Prime im Test (Bitcoin Prime review) on the Coincierge website could be useful.
Although he talked about the increasing importance of bitcoins, he did not make some kind of detailed prediction. The man said that this is not expected to happen on a large scale in a few years, rather it would take some significant amount of time for this to happen, but the process is going to start soon with more and more people preferring bitcoins over gold, he added.
CryptoOracle co-founder David Gokhshtein believes that Bitcoin must be preferred over gold for its functionality. He argues that Bitcoin is more portable, divisible, and easy to store than gold. Additionally, Bitcoin’s supply is limited, which makes it a more attractive investment.
In an interview with CNBC, Gokhshtein said, “Bitcoin is the better store of value because it’s more portable, more divisible, and easier to store. You can’t take gold with you on a plane, but you can take Bitcoin with you on your phone.”
He also pointed out that Bitcoin’s supply is limited to 21 million coins, which makes it a more scarce asset than gold. “Gold has an unlimited supply,” he said. “Bitcoin has a fixed supply, which makes it more scarce and valuable.”
Gokhshtein’s comments come at a time when Bitcoin is gaining increasing acceptance as a store of value. In recent months, several major companies have announced that they will be accepting Bitcoin as payment, including Microsoft, Starbucks, and Overstock.
It remains to be seen whether Bitcoin will ultimately displace gold as the world’s preferred store of value. However, Gokhshtein’s comments suggest that Bitcoin is well-positioned to compete with gold in the years to come.
Here are some of the advantages of Bitcoin over gold, as outlined by Gokhshtein:
- Portability: Bitcoin is a digital asset, which means that it can be stored and transferred electronically. This makes it much more portable than gold, which is a physical asset that must be physically transported.
- Divisibility: Bitcoin can be divided into smaller units, known as Satoshis. This makes it a more divisible asset than gold, which is only divisible into smaller units called grains.
- Ease of storage: Bitcoin can be stored on a variety of devices, including computers, smartphones, and hardware wallets. This makes it much easier to store than gold, which must be stored in a secure location.
- Limited supply: The supply of Bitcoin is limited to 21 million coins. This makes it a scarce asset, which could make it more valuable in the future.
Of course, there are also some risks associated with Bitcoin. For example, the cryptocurrency is still relatively new and volatile. Additionally, there is the risk of hacking or theft. However, the potential rewards of investing in Bitcoin could outweigh the risks.
Ultimately, the decision of whether to invest in Bitcoin or gold is a personal one. However, Gokhshtein’s comments suggest that Bitcoin is a viable alternative to gold as a store of value.
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