Bitcoin has become the new gold in the eyes of many. Currently it is one of the newest assets which provides a stable source of value and security for financial investments. The age old conception that only commodities such as Gold and silver maintain their values are being challenged by the advent of Digital currencies. The turn of the century marked a movement to the digital age and as services have moved online so have options to save and manage your money. Bitcoin has become key as the old glow of gold begins to wear off.
Bitcoin vs Gold
Bitcoin inherently has many benefits gold simply can incorporate. For example you cant receive a fake bitcoin as its impossible for the Blockchain once a transaction is confirmed, preventing a huge number of fraudulent activities. With traditional forms of savings, the black market and ease of manipulation often leads to unauthenticated gold being distributed. Furthermore one entity can never have a monopoly of the currency as it is completely decentralized. Not only does this mean your assets in bitcoin will remain protected but when compared to commodities such as Oil or gold, prices are not dramatically influenced by one person.
What makes bitcoin the ideal medium for savings ?
Bitcoin compared to gold can not be any more different. One is a commodity whilst the other is a currency. However the crucial feature which allows bitcoin to maintain its value is the fact that it is limited in terms of supply. Just like golds rarity gives it value, Bitcoins limited number ensures that its value remains positive as demand will always increase comparatively. Also the value of the coin has remained stable for the past year and whilst this does not represent long term stability, we can be assured that as the bitcoin halving approaches bitcoins position will be considerably consolidated.
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