Gold or Bitcoin. Who will win?

By 10/12/2020News
Morning Stock News

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For thousands of years gold has been one of the most important means of preserving savings. Up to now, the amount of gold a person has had indicates his or her worth. However, the era of digital technology is beginning to make adjustments to longstanding methods of capital preservation – cryptocurrencies. Will Bitcoin be able to replace gold?

BTC/USD

BTCUSD

If you compare gold and bitcoin as assets for capital preservation, there are many similarities. Splitability – if you divide the assets into parts, the price will correspond to the mass of the share. Like bitcoin, gold can be transferred, exchanged, sold and moved. Gold and Bitcoin are limited in quantity and will sooner or later be in short supply.
If you look a little deeper, the digital currency may even have some advantages over precious metal. It is unlikely that you will hide a lot of gold at home. It can be stolen and you will most likely have to use the services of a bank or vault, which will have to pay for the safety of your metal. Bitcoin can lie quietly on your wallet and not require storage fees. The keys to your wallet can simply be hidden and encrypted so that scammers or robbers cannot gain access.
More and more investors are turning their eyes to Bitcoin. A large number of investment funds are already using cryptocurrency to hedge against the fall of the dollar after the huge injections by the US government due to the coronavirus pandemic.
Of course, gold will remain the main means of saving for a long time to come. The leading countries continue to accumulate gold reserves. The US, Russia and China became the leaders of growth in 2020, purchasing more than 208 tonnes of precious metal in total.
Bitcoin is now very much like gold in the 70s of last century, when the price rose sharply by several times and then adjusted by 50% over the years. More and more large companies, such as Paypal, are introducing cryptocurrencies into their business. Billionaires make large investments in bitcoin.
Yes, bitcoin is difficult to touch and admire as gold, but in the current time of remote work and online shopping such an asset does not look as strange as it did 10 years ago.
The world is developing. Even skeptical financial experts are beginning to recognise cryptocurrencies. A new life online requires new digital savings assets.


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