Through this article, we will explain why we should choose Bitcoin over gold.
The main reasons which are pushing people to invest in Bitcoin over gold are limited supply, zero-copy, huge use cases, fake copy of Gold and ease of accessibility. Lets discuss these points one by one in brief.
the limited supply of Bitcoin over Gold
The whole crypto industry knows very well that the supply of Bitcoin is limited to 21 million only. And all these are part of only a blockchain network of Bitcoin.
No matter what the demand of Bitcoin is in the Market, its supply and birth of new coins can’t be influenced.
According to a few research reports, many people lost their private key of Bitcoin because they thought that Bitcoin is useless and doesn’t worth it to hold in the long run. So in this way, there can be a maximum of 18 million Bitcoins in total.
If we will see Gold supply then it is unlimited. No one knows how much gold is in existence in nature but still, gold miners are continuously mining and collecting huge gold metals. Under the situation of huge Gold demand, these miners increase their work power to mine more Gold.
Zero copy of Bitcoin over Gold
In the present time, Bitcoin can’t have its real copy which means a person can own his bitcoin in a real form only, which means directly Bitcoin not a bitcoin copy.
Here this fact may be a strange point for the majority of the people but it is a very important fact to understand, at least when we are doing a comparison between Gold and Bitcoin.
In the present time, a person can buy only those Bitcoins, which are available in the crypto industry, as a part of the supply of the Bitcoin network. But a person can buy Gold in unlimited amounts.
Suppose a person wants to invest in Gold with $1 billion then in that situation that person may buy physical gold but he will never try to buy Physical Gold if he is going to invest in gold for the long term as a holding asset.
In the present time, there are numbers of Gold bonds available, which are equivalent to the price of physical Gold and also there are very nominal taxes to buy such Gold bonds over Physical Gold.
And also Gold bond issuer gives a better 1-2% interest rate per year.
These things are clearly showing that without impacting the demand and supply of Gold, a person can buy unlimited amounts of Gold.
But on the other hand, if a person will buy such an amount of Bitcoins then that person will not be able to buy such kinds of copycat bonds. However, some financial services are trying to introduce their Bitcoin-backed Bond but they are waiting for some regulatory approval for the same.
Better Use cases of Bitcoin over Gold
In the present time if we are holding Bitcoin then we can use Bitcoin in cross-border payment options and also we can easily buy and sell Bitcoin on the crypto exchanges.
On the other hand, if we own real Gold then surely we will not be able to use it in the payment system easily, and also we will not be able to use it in cross-border payments.
And most importantly we can’t buy or sell Gold by sitting at home, we need to go to a Jewellery shop and also that Shopkeeper will charge huge tax charges.
So Bitcoin gives us full access to use it in any medium but here physical Gold has lots of limitations. Here, if any reader will consider that current fact is wrong because there are many platforms where Digital Gold is available then that person is wrong. After all, digital gold is a private company-based Centralized concept and we can’t trust such things, which are not fully regulated and also not decentralized.
Ease of access to Bitcoin over Gold
We can access Bitcoin at our fingertips but can’t do the same with Physical Gold. We can own Gold but can’t access its value anywhere anytime because people are less adaptive to Hold over Gold.
If a person holding Bitcoin wants to sell then he can do the same instantly without any limitation of time (day or night) at any exchange but Gold holders need to wait for day time to go to the Jewellery shop.
A bitcoin can be held in the form of paper, hardware wallet, software wallet, etc but Physical Gold will remain in physical existence and people can forcibly steal it. While a bitcoin holder will never lose his Bitcoin until his private key is safe.
Gold can be fake but not Bitcoin
In the present time there are good people and also there are bad actors and people. We can see many types of scams in our society.
In these situations, we can expect that we may go through the wrong shop/individuals/seller to buy. But here every Bitcoin will remain pure.
Conclusion: Through all the facts we can understand very well that Bitcoin gives full freedom to the holders, while Gold holders remain under full restrictions. And Investment in Bitcoin results in high prices but Gold and Gold Bond investments are less favoured to give Pump in the price of Gold. Here this article is not suggesting any person go with Bitcoin or Gold Investment. Both of these two assets are king at their place. This article is just a side-by-side comparison.