Differences between today’s two most popular assets! Bitcoin VS. Gold
The gold commodity is a difficult item to corrupt or steal, it has an established system for tracking, weighing, and trading. Bitcoin is also an asset that is hard to corrupt as is operates on blockchain technology, an encrypted end to end decentralized system ran by complex algorithms.
How Rare Are They?
Bitcoin is limited to an all-time 21 million coins, it has been calculated that all the coins will be mined somewhere around the year 2140. As for the time being, there are blocks that are mined and distributed to parties accordingly to the amount of hashrate they input. Gold has been considered a rare commodity for decades. It has been utilized from luxury purposes to tool purposes, such as dentistry and electronics. As it is a tangible asset it can help in a physical aspect.
Bitcoin has an incredible baseline value, having the potential to change the global financial system as we know it. Providing a means of banking for those without access to traditional banking infrastructure and which perhaps do not meet certain requirements to do so. Gold has been considered the go-to asset if other mainstream assets go through inflation or a decrease in monetary value. We are currently seeing both gold and Bitcoin rise in price due to the Corona crises in the world markets today.
Both Bitcoin and gold are very liquid markets. Gold has a daily volume of around $125.3 billion while Bitcoin has a daily “ spot “ volume of around $4.1 Billion. Both assets are open to being traded against the majority of fiat currencies.
Bitcoin is borderless, can travel with you by rail, car, bus, train, or plane, and no one will ever know. To carry around a block of gold is by starters very heavy and not discrete at all.
To hold a significant amount of gold you need to have a bank or another custodian which you trust. It is not the case with Bitcoin where the only thing that affects the security of your assets, in any quantity, is how well can you secure your private keys, which are essentially a bunch of strings made out of chars and numbers.
Bitcoin and volatility go hand in hand, experts say at least until all the coins have been mined. Since its birth, Bitcoin overall has increased in value, however, for those entering the market recently have experienced how tough Bitcoin can be with its volatility. Due to the current Corona situation in the world, many assets including gold have been big movers. Volatility is something that happens the most when there are uncertainty and fear in the markets. If you wish to jump on the train and see what Bitcoin is like, click here!