5 Reasons Why Bitcoin (BTC) is better than Gold.
Gold has been an integral part of human society for hundreds, if not thousands of years. In 2008, a new form of 'digital gold' emerged in the form of BTC and since then it's market cap and usage is on the rise. In this article, we will see five reasons why BTC is better than gold.
1. BTC is Safe
Gold safety is the highest concern for investors that put their money into it. Mostly gold is stored in a bank's safe deposit box or by paying a third-party storage firm. This is an additional cost and hassle.
BTC, on the other hand, is a digital asset that is accessed through private key, which is only known to its owner. The only thing you need to keep your BTC safe is to keep that private key safe and there are many easy ways of doing this.
One more thing which gold doesn't offer but BTC does is anonymity. You can do anonymous transactions without getting traced. This feature is highly valuable in areas where crime rate is high.
2. BTC is free from inflation
Inflation is "a general increase in prices and fall in the purchasing value of money". Annual gold mining production is running at over 3200 tons per annum (Source). Price deprecates as we have more gold coming into the market.
On the other hand, BTC is totally free from inflation since the supply of BTC will decrease with time and total BTC that can be generated ever will be 21 million. Scarcity makes Bitcoin deflationary, and thus contributes to the increase in its price – at least this is what many investors rely on.
3. BTC is for everyone
Another reason that makes Bitcoin more friendly investment then gold is that it's open for everyone in the globe who has internet and electronic gadget. You can buy, sell, trade BTC instantly at your own without interference of any third party institute like a bank.
From the objective point of view, gold bullion can’t simply be divided into tiny units, whereas Bitcoin can. Currently, the smallest unit of Bitcoin is Satoshi. This is one hundred millionth of Bitcoin (0.00000001 BTC) or $ 0.00011, according to the current BTC to USD rate. Looks affordable enough, doesn't it?
4. BTC is Decentralized
For decades commodity trading, stock markets and price of gold are controlled by market giant who have major share of stock. BTC has been designed in a way that it's decentralized and free from any single entity control. Since there is no single owner of BTC its price cannot be manipulated by anyone.
Another cool feature unique to BTC is its mobility. To access your BTC all you need is a wallet that may come in the form of a software app, memory stick or simply a piece of paper. While transferring precious metals like gold across the border is an expensive and risky venture.
These are only five reasons that can help you understand why BTC is better than gold. Every new innovation is rarely welcome in the start, today's 10500 $ worth of BTC was almost 0 $ in 2009.