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Why is bitcoin the new gold?
Bitcoin’s exponential growth has given millennials access to a digital asset far more rewarding than gold. Bitcoin even at a code level is guaranteed to be deflationary and as such cannot enter hyper-inflation. For centuries, gold has been a medium of exchange and treated as the most valuable asset all over the world.
Is bitcoin based on gold?
Bitcoin is a blockchain-based cryptocurrency that shares some properties with its gold counterpart. In fact, many have called bitcoin “digital gold” in the past due to its weak relationship with all other assets—stocks especially. Like gold, there is a limited amount of bitcoin.
Is Bitcoin more rare than gold?
While we know that there is only 21 million bitcoin that exist, It is unknown when all the world’s gold will be mined from the earth. There is also speculation that gold can be mined from asteroids, and there are even some companies looking to do this in the future.
What does Mark Cuban think about bitcoin?
But Cuban said that, in his opinion, bitcoin is “not a cure for any financial system” and “it’s not a hedge to anything.” While Cuban sees bitcoin as a store of value that will appreciate, he doesn’t view it as a medium of exchange or as a currency that will be be used commonly for transactions, due to factors like …
Does gold have intrinsic value?
Gold has an intrinsic value (or fundamental value) that exists but does not match its market value. Gold is required for certain scientific and manufacturing processes that are unique to it so it has a real value that no other element can replace same with silver.
Is it better to invest in Bitcoin or gold?
Many feel that comparing the price of Bitcoin to Gold is a better method than comparing it to a fiat currency like US dollars. That is because Gold, like Bitcoin, has a finite supply.
Is bitcoin’s value better measured by gold or fiat money?
Gold has traditionally been used as money, and its supply isn’t manipulated by central banks. Many believe gold is actually the best way to properly measure bitcoin’s value, since the value of fiat money is always changing. Many feel that comparing the price of Bitcoin to Gold is a better method than comparing it to a fiat currency like US dollars.
What is the trend in the price of gold?
There is no apparent downward trend in the price of gold as a never-ending new supply is injected into the market. The global economy laps it up. Let’s look at bitcoin. Every year at, let’s say $10,000 a coin, there is $6.5 billion dollars of new supply that needs to be hoovered up by new demand to maintain its prices.
Is bitcoin and cryptocurrency a threat to gold?
Now, to make matters worse, bitcoin and some sister cryptocurrencies have been invented and they dramatically encroach on key use cases of gold, like flight capital and safe haven investment.