Bitcoins potential to rival the likes of gold and silver as valid and tangible forms of long term investment have long been considered. While there are considerable differences between the two mediums, they essentially function in the same way, storing wealth in the long term without significant depreciations in value. With Bitcoin prices hovering ever so close to the gold standard, will Crypto ever become the gold of the digital age ?
Gold’s dominance over the centuries is unparallel. Providing stability in times of war and inflation, the metal has stood the test of time. In addition the international adoption of gold in countries such as India and china is huge as markets swell into the trillions. Gold’s advantages include the fact that it has international adoption and stability but is susceptible to counterfeits as fraud and theft which is significantly minimized when dealing with Bitcoin.
“I think it’s an interesting alternative asset class, especially as a hedge towards things like demonetization or other geopolitical factors,” David Moskowitz, CEO at Attores
To conclude, bitcoins future as the potential successor to Bitcoin in this digital age is undoubted. Bitcoin may be in its infant stage having been in the markets for around 4 years but has already proven itself to be stable and active. Many were shocked at bitcoins potential to be exploited as the hacks of exchanges such as the bitfinex exchange which cost $70 million and the MtGox which cost millions more would have crippled a fiat market but due to bitcoins decentralized nature, it was able to recover lost ground within a matter of months. Gold has been the go to investment medium for many, but in this fluid movement, only bitcoin may afford you a secure form of investment with on demand transfers of value.