Is Bitcoin the New Gold?

February 20, 2021
Kevin Larkin

The huge surge in cryptocurrency value and interest, specifically bitcoin, has stirred up quite an array of emotions from people worldwide. Some are excited as they are invested in it already, others worried and skeptical of this huge boom, and even more wondering if there is real value to be found in this completely virtual currency. Some experts have asked similar questions and have hypothesized that bitcoin may give gold a run for its money in being the preferred asset to hold for the long run. Tesla CEO Elon Musk has even commented on this situation on his Twitter as of late stating that crypto prices “do seem high” but may end up acting as a better commodity than gold. So, are these experts potentially onto something, or is this all just a bunch of fool’s gold?

Surprisingly, the decision seems to be pretty split down the middle, as there is no clear cut winner in which is currently the superior asset. However, unsurprisingly, it all depends on who you ask, as long time gold holders are skeptical of bitcoin’s potential and bitcoin pioneers swear that it’s the future worth investing in now. First we’ll discuss why gold may keep its crown as the well-known safe haven asset that it’s always been. Of all the arguments made from experts on the topic, one of the most recurring is just how long gold has been a reliable store of value, stretching over thousands of years. If it has been reliable for countless past generations across numerous societies worldwide, what will change that in the future? Gold also has the advantage of being widely accessible to those who are in any economic standing and regardless of tech knowledge. A hurdle that bitcoin will constantly face that gold will never is the constant government regulation as it’s so new. There could come a day when bitcoin is no longer deemed legal to distribute due to legislation of it being considered to be harmful to society.

On the flip side, it has been argued by bitcoin aficionados that bitcoin is actually an improvement over gold as far as store of value goes and that it should surpass gold’s market cap by 2030 if it continues at its current rate. Another advantage bitcoin has over gold is its recent relevancy and how the world is adapting towards it. It is more liquid than gold, easier to exchange, and becoming more widely accepted throughout the world’s economy. A final reason for bitcoin is simply its aspirational value that gold doesn’t contain. As argued by professionals, bitcoin has the potential to keep multiplying in value as its very current and interesting to many, while gold will most likely stay the same. The verdict for the time being seems to be, if you can properly educate yourself in both markets, investing in both may be the right choice for you.

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